home-heart

Low interest rates could be tempting your clients into buying a vacation home, or to help one of their kids to go from renting to owning.

But there are so many factors to consider before buying a home.  How should a client weigh a low mortgage against property taxes, maintenance fees, relator commissions, and their own long-term goals?

Read: Should clients rent or buy?

The New York Times has put together a detailed interactive calculator that crunches  the numbers on whether it’s better to buy a home or to keep renting. It takes two dozen factors—from purchase price and length of mortgage to the opportunity cost of making a purchase instead of investing in the market—and boils them down to a single number and a chart.

For instance, someone thinking of purchasing a home that costs $500,000 with a 20% down payment and a 2% mortgage is likely better off buying than renting, the calculator indicates.

Try the calculator here.

Also read:

Which TV characters can actually afford their homes?

Housing in Toronto, Calgary still hot

More young clients will buy homes


Originally published on Advisor.ca

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