Trying to decide if renting or buying is for you?
Start by finding out average home prices where you want to live. Next, make a list of the pros and cons of owning vs renting to see which option is best for you; the following are some examples.
- Less maintenance and repairs
- Lower monthly upfront costs
- Shorter-term commitment, making it easier to move to a new home, neighbourhood or city
- Protection from decrease in property values
- Possibility to free up cash to invest or to save a larger down payment for a house
- Monthly payments may increase year after year
- The risk that your lease won’t be renewed
- You are paying someone else’s mortgage rather than building equity of your own
- You can’t paint or remodel without the landlords permission
- Freedom to renovate or modify your home as you wish
- You are building up equity in a safe, secure investment as you pay down your mortgage
- Potential for rental income if you include a secondary suite
- Stability and peace of mind that comes from being in control of your investment and owning the place where you live
- The risk of financial loss if your home has lost value when you sell
- Responsibility for all ongoing costs including mortgage principal and interest, property taxes, insurance and maintenance
- Monthly payments can increase significantly if interest rates go up at renewal time
- Possibility of unexpected and potentially costly repairs
There are advantages to both renting and owning a home. Make sure you understand the benefits and responsibilities of each before you decide what’s right for you.