Renting Over Buying

When the time comes to leave the safety of your parent’s home, you will most likely look at whether renting or buying makes more sense for your situation. The norm once was to start saving for a down payment to buy your first house, as buying a home was considered to be our life’s goal – homeownership was a mark of success. But, does owning a home meet everyone’s needs?

Times are evolving, and it is more common in our culture to move away from the city you grew up in and away from traditional norms. We move with our jobs, relationships, or just for a new adventure more often than previous generations. Not only is this trend a major reason we see fewer home buyers at a younger age, but the housing market has been more volatile these days as world economies change. With this, there is no guarantee that property will gain equity or that interest rates on your mortgage will be stable. Due to these factors, buying property may not be for everyone.

Pros of Renting

Young adults in the 21st century aren’t necessarily interested in the status quo of the previous generations. Renting fits their needs when it comes to finding a house. With the housing market today, more people are looking at renting options…at least for the time being. Rental property has several advantages. Here are a few to consider:

  • Not sure of the type of home you want – apartment/condo, semi-detached or detached home, bungalow, two-story – renting allows you to see which type of home meets your needs.
  • What neighbourhood works for you – maybe you know what quadrant of the city you want to live in but don’t know what neighborhood best fits your needs. Renting allows you to try out a few different communities.
  • Not a fan of yard work? Some home rentals the landlord will take care of the property.
  • No need to worry about down payments or fluctuating mortgage interest rates.
  • There is also no need to worry about taxes.
  • Maintenance and repairs are up to the landlord so you just get to sit back and enjoy your home.
  • Utilities may be included in the rent, which could include internet and cable!

Pros of Buying

Buying a home is a big commitment. At the end of 25 or 30 years when the mortgage is paid (or sooner if you can), the property is yours. The investment benefit and owning a home for your retirement are the biggest reasons people buy a home instead of renting. A few other reasons could be:

  • Hopefully, your home will build equity over the years. Money in your pocket.
  • It is an investment that builds slowly.
  • Owning a home is a huge asset against your credit score and acquiring credit.
  • Freedom to make changes without the landlord having to authorize first.

There are benefits to both ways of thinking when it comes to homeownership or renting. Your lifestyle, family, and your budget will be your guide in deciding. Renting is an excellent way to understand what owning a house not only means but what it will cost. At Rentfaster.ca, there are many guides, FAQs, and assistance to get you into the right property.