Renting vs. owning: which is right for you?

We may be biased, but as REALTORS®, we’re firm believers that owning a home is one of the best and most reliable ways to build equity, ensure security and stability in both good times and bad, and look after your family, your finances, and your future.

But even we agree that homeownership isn’t for everyone (or at least, not at every stage of their lives). So how do you know whether buying or renting is the right choice for you?

The benefits of renting

On the pro side, renting can provide greater flexibility, make it easier to move if or when you have to, and has the potential to be less expensive on a monthly basis than owning a comparable home. Among other benefits, renting a home can offer:

·      Lower upfront costs without the need to save up for a large down payment

·      Potential to save or invest more money if your rent works out to be less than your monthly mortgage and other bills would be if you had purchased the property instead

·      Greater simplicity and mobility if your career involves having to move every year or two, or if you anticipate having to make a big move or other major life change soon

·      More predictable monthly budgeting with fixed monthly housing costs for the duration of your lease

·      Less responsibility and more free time thanks to fewer household maintenance tasks and repairs

The benefits of owning

On the other hand, while the upfront costs and effort may be a little more, buying a home also offers a significant number of advantages for many Canadians. Among other benefits, owning your own home lets you:

·      Build equity with each and every mortgage payment you make to help fund your future plans, your dreams, or your retirement

·      Take advantage of federal or provincial government programs that can help defray the cost of buying or owning a property

·      Make any changes you want to customize your home to suite your specific needs and preferences, improve the property and your resale value, or simply make your home your own

·      Give your family a safe, stable and secure place to live without always having to worry about whether your landlord is going to raise your rent next year or decide not to renew your lease

·      Potentially enjoy some healthy tax deductions for housing-related expenses like mortgage interest or property tax

·      Look forward to the peace of mind, financial freedom and lifestyle flexibility that comes from knowing that, once your home is paid off, you’ll never have to make another mortgage payment or write another rent cheque again

Which is right for you?

If you’re not sure if buying or renting is right for you, ask yourself a few questions like:

·      How long do you want or plan to stay in your home?

·      How much is your monthly housing budget?

·      Do you have enough saved up for a down payment?

·      How important is it for you to be able to personalize the place you live?

·      Do you prioritize flexibility or security?

·      Are you emotionally and financially ready for the responsibilities of homeownership?

If you still can’t decide, try asking your financial advisor or a trusted friend or family member for advice, check out an online rent vs. buy calculator to help you run the numbers – or contact us to set up a free chat or phone call to help you run through the pros and cons, consider your options, and talk about your unique circumstances, plans, and long-term goals.