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Renting vs buying

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Should you rent or buy your home?

Published in: Real Estate
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Renting vs buying

  1. 1. Renting VS Buying a Home Image shared under CC0
  2. 2. Our Agenda 1. Agenda 2. Objectives 3. Introductions 4. Activity 1: Discussion 5. Activity 2: Vocabulary review 6. Activity 3: Dialogue 7. Activity 4: pros and cons of renting VS buying 8. Activity 5: Case studies 9. Activity 6: Dictation 10. Reflection
  3. 3. Workshop Objectives 1. To learn 8 new words related to pros and cons of renting VS buying a home 2. To learn pros and cons of renting VS buying a home
  4. 4. Introductions… What is your name? What is your country of origin?
  5. 5. Discussion Activity 1 Image shared under CC0
  6. 6. Reflection Right now, are you renting your home- or did you buy your home? What are some pros of renting a home? What are some cons ? What are some pros of buying a home? What are some cons ?
  7. 7. Let’s review vocabulary related to the pros and cons of renting or buying a home? Activity 2
  8. 8. Activity one: Vocabulary Review Member of a nationut asset down payment tax break appreciate depreciate amortization period finance the length of time of you payments to decrease in value an initial amount paid at time of purchase- not including payments to increase in value to make payments Something you own that is worth money the value of your home minus what you owe equity a reduction in the taxes you owe
  9. 9. Activity two: Fill-in-the-blank 1. How much __________ do you have in your home? 2.Owning a home can be a great ______________ . 3. You don’t need a _________________ when you rent a home. 4. One advantage of home ownership are the ________________ . 5. Homes usually _________________ in value over the years. 6. It is possible that a home can _________________ in value. 7. How long is your ______________________________ ? 8. People usually __________________ their home over at least 10 years. assetdepreciate finance equity tax breaks down payment appreciateamortization period
  10. 10. Listen! What are some pros or cons of renting a home that Johanna and Alicia talk about? What pros and cons of buying do they discuss? Activity 3 Image shared under CC0
  11. 11. Listen to a dialogue: So True. On the other hand, if they depreciate ….. Johanna Johanna Alicia Johanna Alicia Johanna Alicia Alicia So Alicia, why did you decide to rent your home instead of buy? Well for one thing, I didn’t have any money for a down payment. That’s a good reason. Having said that, home ownership would be nice. True. They can be a great asset, because they have the potential to appreciate in value over time That’s one reason why you’re glad you’re renting! That’s for sure. Johanna Alicia No, I didn’t know that! Did I tell you that I am thinking about buying a home?
  12. 12. Listen to a dialogue: Johanna Alicia Johanna Alicia Johanna Alicia Johanna Alicia Alicia You’re welcome! Not right at the moment, but maybe next year. It is good to take your time and think about the pros and cons first. Yes, that is for sure. I am going to take the rest of this year to review my options and gather a down payment. That would be great! Well, do your research and good luck to you! I’m not sure, but I would like an amortization period of 15 years or less. Johanna It sure would, but I’m not sure if it would be possible. Thanks Alicia. For how many years would you like to finance your home?
  13. 13. Let’s learn the pros and cons of renting VS buying! Activity 4
  14. 14. A. Why rent? Image shared under CC0 Image shared under CC0
  15. 15. 1. No down payment is needed! Image shared under CC0 This makes it easier to get into your home! A down payment is necessary when buying a home.
  16. 16. 2. You don’t have to worry about maintenance! Image shared under CC0 Usually the care taker will shovel the snow or mow the lawn for you! Image shared under CC0
  17. 17. 3. Easy to move Image shared under CC0 If you need to move in a hurry you just have to finish your lease or sublet If you own a home and need to move quickly, you can rent it out or sell it- sometimes at a loss.
  18. 18. 4. Avoid buying a depreciating asset Image shared under CC0 Houses can depreciate in value. You can avoid this by renting.
  19. 19. 5. Avoid the cost of maintaining a home Image shared under CC0 When you rent you are off the hook!
  20. 20. A. Why buy? Image shared under CC0
  21. 21. 1. Your house may be a great asset! Image shared under CC0 Your equity may grow the longer you own your home Refinancing may affect your equity. Always speak to your financial advisor before refinancing!
  22. 22. 2. You can decorate your house as you please! Image shared under CC0 This is usually not possible when you rent.
  23. 23. 3. You may have a greater sense of community Image shared under CC0 People who own homes may stay longer in their communities and have stronger roots where they live
  24. 24. 4. Steady housing payments Image shared under CC0 You may be able to lock-in a low long term payment. This could leave more money in your pocket.
  25. 25. 5. You may get tax breaks Image shared under CC0 You may be able to deduct the interest portion of your mortgage payments Speak to your accountant about this
  26. 26. Don’t rush into any decision. Be sure to speak to your accountant, financial advisor and real estate professional. One more thing! Image shared under CC0
  27. 27. Contact: Residential Tenancies Branch 302 – 254 Edmonton Street Winnipeg, Manitoba R3C 3Y4 Toll-free: 1-800-782-8403 (within Manitoba) Tel.: 204-945-2476 Fax: 204-945-6273 Email: rtb@gov.mb.ca www.manitoba.ca/rtb (See website for other locations within Manitoba) More Questions? Image shared under CC0
  28. 28. Let’s now consider some scenarios. Are these pros or cons of renting or buying? Activity 5
  29. 29. Scenario One Sam wants to paint his living room, but his landlord said he would have to use a different colour. Image shared under CC0 This is a con of renting a home.
  30. 30. Scenario Two For the third consecutive year, Becky’s rent has increased by 4%. Image shared under CC0 This is a con of renting a home.
  31. 31. Scenario Five Samantha and Natalia are room mates. They both got accepted into a university far away. They subleted their apartment and 6 weeks later were living in their new home. Image shared under CC0 This is a pro of renting
  32. 32. Scenario Three Robert and his wife finally paid off their home and are free of mortgage payments Image shared under CC0 This is a pro for buying a home
  33. 33. Scenario Four As Diana was heading out the door, she discovered her fridge was leaking. She had to cancel her plans and take of a damaged floor and the purchase a new fridge. Image shared under CC0 This is a con of home ownership.
  34. 34. Scenario five Sophie got a tax reduction because of her mortgage payments. Image shared under CC0 This is a pro of home ownership.
  35. 35. Dictation Write what you hear! Activity 6 Image shared under CC0
  36. 36. Dictation 1 As a home owner you may be eligible for tax cuts.
  37. 37. Dictation 2 When you rent, you usually need to get the approval of your landlord before doing any home improvements Image shared under CC0
  38. 38. Dictation 3 If you have to move when you own a home there may be a lot to consider. Selling a home quickly could result in a loss of equity.
  39. 39. Dictation 4 When you own a home you are responsible for day- today maintenance, such as mowing the lawn and shoveling the snow.
  40. 40. Dictation 5 When you own your own home you could look forward to one day living mortgage free!
  41. 41. Reflection What did you learn today?  8 new words related to buying or renting a home  Important points related to buying or renting a home

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