and cost, but personal/family values, such as belongingness, privacy, and traditions will also play a strong role in the decision.

2. The timeline for the possession (long VS short) will determine how much weight the personal values will hold on the decision as a whole.

2. Once the “WHY?” has been answered, or understood, the choice is based on whether you’re purchasing for living or investing purposes.

• In this evaluation, you must view the points (listed bellow) from the position of the purpose for the purchase.

• Three points to consider here:

1. Prestige/popularity:

o The more popular the area, the higher the demand to be located there, which not only drives prices up on the building and land, but also increases the likelihood and timeliness of future resale opportunities.

o These areas also bring people of similar mindsets (synergy), which breeds shared values and community.

o Layout:
o Landscaping and aesthetics

 Paths, town center...etc. o Security

o Exclusivity

2. Vicinity:
   o How close the home is located to: work, hospitals, fitness

   facilities, good schools, parks, places of worship, stores, and adequate forms of transportation.

   
   

3. Trends:
   o Economy:

   o No matter how close the location is to work, or how prestigious the area is or was, if the economy is doing poorly, people eventually will look elsewhere to reposition themselves.

   o Area:

o Knowing what’s to be developed in the area, or

surrounding areas, may add or subtract from the perceived value of the property

 I.E. there is going to be a sewage treatment plant located 5min from the development...

o Property taxes:

Renting Vs Buying

“If you rent, you’re throwing away your money!”

tensioned concrete used to transfer the load from a structure through an upper (weak) layer of soil to a stronger, deeper layer of soil.

...Its just common logic that dictates buying is better. After all, you’re building equity, instead of wasting your money, right?

Of course many factors can and do play a factor in the result of this decision:

• Location

• State of the economy

• Prestige

• Interest rates

• Age of property

• Quality

• Property taxes...

  But for curiosity’s sake, I did some research of my own, and ended up finding an excellent Internet based tool, (http://www.canadamortgage.com/calculators/rentvsown.cgi) to help shed some light on this age old issue:

  This tool was really quick and easy to use, and it outlines the cost benefits of renting VS buying. For example:

  Criteria I used:

  • Buying
  o Purchase price -­‐ $300,000
  o Down payment -­‐ $30,000
  o Interest rate – 4.05%
  o Term – 3yrs
  o Amortization – 30yrs
  o Salesfee–5%
  o Taxes-­‐$300/month
  o Maintenance costs – $200/month

  • Renting