MORTGAGE Blog & ARTICLES
Housing Market-Current Rent or Buy Outlook
What is the best thing to do- to buy or to rent? A recent study was released by the OECD that utilized the measure of Price-to-Rent Ratio. In this ratio, this is about the homeownership cost versus rent.
According to the threshold presented by Trulia; the ratio of one to five is a lot better to buy. But if it is above twenty-one, then it is better to rent than buy.
Basing on this OECD study, Canada ranked as the second with a ratio of sixty-four. This is a lot higher than that of the renting threshold.
Previously this year, there was another report released by “The Economist”. This best suggested the same trends in Canada. According to the report, the first gauge concerns the price up to rent ratio. In this measure, it best displays the huge range that starts from a gigantic seventy-eight percent evaluation in the country of Canada.
However, BMO also stated the two distinct viewpoints from this equation. The homeowners are being divided into two different categories. The first group is about the short haul while the other group is a part of another for the long run.
In the report of BMO, it was not denied that renting is an even better choice. Buyers that are in their fifteen year-period say that buying house is better than renting. There are savings factors that are presented in the publication: closing and moving costs.
The mortgage freedom is the additional bonus after twenty-five years. This is the compelling point among buyers interested in staying put for a long period of time.
Even according to a study last year, twenty-eight percent of homeowners are moving every five years. The majority of them are interested to move. Apart from it, there is also the possibility of correction in housing prices.
For the many Canadians, it is better for them to rent than purchase a home at the present time.
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