Pros and cons when considering whether to rent or buy a home
There are many factors to consider when deciding whether to rent or buy a home. Typically, younger people start out renting before they dive into homeownership, while seniors often look to downsize from the larger homes they’ve owned most of their lives.
No matter where you are along this spectrum, everyone should consider the pros and cons of both options before deciding on what they want.
Whereas renting a home gives you much more expendable cash in the short term, homeownership is more of a long-term investment that gives you financial security for years to come. There are many benefits to renting and owning, but likely the biggest factor will be how much you can afford.
No maintenance costs
One of the best advantages of renting is living hassle-free when it comes to paying for regular maintenance. With landlords responsible for all repairs and regular upkeep, all you need to do is pick up the phone and let the manager know what’s wrong. Should your plumbing break, your landlord is on the hook for the bill, not you. Of course, the downside is your repair schedule is always in the hands of the landlord, so make sure you get a good one.
Long-term investment
If you’re ready to commit to a more long-term living arrangement, then homeownership might be the option for you. There are upfront costs to consider, but once you start paying those mortgage payments, your equity is building. Every dollar you contribute to the principle of your loan equates to more and more equity. Plus, most homes appreciate in value, which builds even more equity. For more information, check out Dunpar’s First-Time Buyer’s Guide.
Upfront costs
Without question, buying a home comes with far more upfront costs than renting. Buying a home means a down payment, realtor fees, lawyer fees, inspection costs and taxes. Renters have to pay first and last month’s rent, but the cost is still marginal compared to buying a home.
Flexibility
Many people will warn you about throwing your money away every month as a renter, but there are advantages, particularly when it comes to having the freedom to pick up and move with much more ease than a homeowner. This nimbleness gives renters the ability to move or relocate on a whim. With a simple 60-day notice, you can be out of one living arrangement and into the next.
Check out some of the luxury rental townhomes at The Ossington.
When it comes to renting or buying a home, there are many options to consider. In order to find the best fit, it’s important to look long and hard before you make a decision. While there’s more financial freedom and more flexibility with renting, home ownership is still one of the best ways to invest in the long term. The good news is there are plenty of options, no matter what direction you take.
