Should You Rent an Apartment or Buy a Condo?

If you do not want to necessarily move into a home, your next options would be an apartment or a condo. However, deciding whether you should purchase a condo in one of the condominiums in Ottawa or rent an apartment is not always an easy one. Before you make your decision, you should ask yourself these basic questions.

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  • Do you have the down payment? Before you purchase a home or a condo, you need to have the down payment. The exact amount that you will need depends on the type of mortgage program you are using as well as the purchase price of the condo. Unfortunately, if you do not have any money saved, then you may want to rethink purchasing the condo until you have the money to cover your down payment.
  • Can you afford the repairs? One of the benefits of living in and renting an apartment is that you are not responsible for any of the repairs. When something breaks, the apartment complex or the owner of the apartment is responsible for taking care of the repairs. All you have to do is call and notify them that a repair is needed. When you own a condo, most of the time a repair will fall on you and that includes the cost of the repair. If you can handle these costs, then you are ready to make the purchase. You should try to have a savings account with enough money for an emergency like this that can pop up.
  • Do you plan on staying at least a few years? If you rent an apartment, then you have the luxury of moving every year if you want to. If you own a condo, this not only becomes more difficult but it also may be more costly. You will not want to move away from the condo until you can get a bit of equity from it. That means you will need to be there a few years at least. If you are not sure where your job will take you or you plan on moving to another city, you may not want to purchase just yet. In fact, in most cases, buying is cheaper than renting after 7 years but anything less than that and you will end up paying more for the luxury of buying.

If you are ready to purchase a condo in one of the condominiums in Ottawa, now is a great time to purchase. Just make sure you have everything that you need before you take the plunge.

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