Should I Buy or Lease, that age old question?

Whether you are looking to get a new car or for a new place to call home in 2019, the age-old question is whether it is better to buy or to lease?

When looking at a car, the decision really comes down to usage and how long you look to keep your vehicle.  If you are a person that likes a new car every 3 or 4 years and you do not put a lot of mileage on a car then a lease might be the way to go, as it will allow you to get more vehicle to less money.  However, for those who are more on the go or say a hockey parent than a lease is out of the question as you are sure to go over your miles which will cost you additional money our put you into the position of having to purchase the vehicle at the end of the lease or pay a huge penalty.

The decision comes down to personal circumstance and the same can be said for homeowners.  The truth is that most homeowners will start out leasing and the decision to purchase a home, like a car, be driven by personal circumstances.

Very much like buying a car, home ownership has it benefits, but it also has its draw backs also.  The cost of owning a house increases over time as home repairs start to come into the cost equation plus as the population ages more and more people are moving from home ownership to leases or renting condos and apartments because they no longer want to worry about the yard or if the roof will last another year. 

If you are in Canada than recent changes to government policies on lending have made it more costly to purchase and you do not have the tax advantages that our neighbors to the south have.

In the U.S. Trulia, an online residential real estate site for home buyers, sellers, renters and real estate professionals, has been compiling the report for years, and buying is now a better bargain relative to renting than in any year since 2012.  This is because the low mortgage rates have helped offset rising home prices at a time when rents have continued to rise.

Also, in the U.S. the mortgage-interest tax deduction, which provides homeowners annual tax breaks also makes ownership a better option.  Given the current conditions in the U.S buying will probably be a better deal well into the foreseeable future. 

Mortgage analysts will always tell you that for the best bang-for-your-buck, it’s better to buy than to rent.  However, with lower interest rates that might be the case however, once all costs are factored in, the decision becomes more of a personal decision to what works best for you and your lifestyle and where you call home and how you drive there.

By Jamie Barrie