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Your Top Real Estate Questions Answered: Question 4

Blog by Sara Kalke | May 16th, 2011

Question 4: Should I rent or buy? 

And finally, a little tribute to my friends out there who are renters:  It's OK to be a renter.  I know that's against the religion of a lot of real estate agents, but I have been doing a lot of thinking about this issue lately.  Being a renter is, in my opinion, like the investment equivalent of putting all of your money in a savings account.  You may be getting 0.001% interest, but at least you can sleep at night knowing you've taken virtually NO risk.  When I was a student in University and had to live off day-old bread and the bags of slightly damaged vegetables at the grocery store, I had no room for risk! There was no chance I was investing my $100 a month food budget in the stock market! 

If you're not ready for the cost and responsibility of homeownership, feel seasick at the thought of having a debt that takes decades to pay off, or if you just don't have the stable income (a joy for all of us without a stable monthly paycheck and those beautiful things called benefits), don't fall prey to your peer pressure to own just for the sake of owning, at least not before you're ready (see the last blog entry - Is now the time to buy? Or Sell?).  Yes, your rent is funding someone else's mortgage, and yes, that is painful.  But there is risk to real estate, and you're much better off waiting until you're ready before you jump into the world of homeownership, as exciting and rewarding as it is.  Just ask the top 2 agents in Edmonton in the first quarter of 2011 (remember them, those guys that specialize in foreclosures?)  But that's just my opinion...

If you have any questions, please call me anytime!  Everyone's situation is different and I'd love to help you with whatever your real estate needs are.

- Sara Kalke
(780) 710-7669
On Twitter @sarakalke
On Facebook at http://www.facebook.com/sarakalkerealtor