Renting Vs. Buying

The Pro's of Renting
Easy To Move On

• you're free to move on as soon as your lease is expired
• if you're unsure of how long you'll be living in an area, renting is usually your best option

• property taxes are the 2nd highest cost of owning a home, next to mortgage payments
• there is an argument that the cost of property insurance and home owners taxes are enough to make people rent

• every home needs maintenance/repairs over time 
• when renting, the repairs are passed on to the landlord/property manager
• if you have a good landlord, your maintenance worries should be minimal

• you're free to paint, change fixtures, tear down walls, or put up new walls
• when you rent, you can't remodel
• a home is a place that captures many memories
• you may want to buy a home and have it reflect you and your design choices

• when you set up your mortgage, chances are that you'll have a fixed rate
• this means your mortgage payment will not increase over the life of the loan
• it's common for rental properties to have payment increases every time that the lease is resigned

• when you purchase a home, a portion of your payment goes straight to paying off your mortgage 
• every time you make a payment, you earn equity in your home
• as the price of your house appreciates, your mortgage payment goes down and your equity steadily increases
• if you buy a home, in an area that appreciates well, and you pay your mortgage over 5+ years, you'll have a nice chunk of equity
• you can use your equity to move into a larger home, refinance, and take out some cash, or leave it alone and let it grow!

• rents in Canada seem to be rising fast right now
• this makes it hard to plan your future finances when you don't know what your rent payments will be once your lease expires
• the unknown future of rent can make tenants feel insecure and unsettled

• when you sign a lease, it will most likely have a deadline
• many leases are structured for a year
• once the lease is up, there is no certainty that you'll be able to renew
• the future is always uncertain when you rent a home, which makes long term life plans more difficult

• every rent payment made goes straight to the landlord
• you have no ownership or equity in the property 
• knowing that every dollar of your rent is gone for good is discouraging and causes tenants to look into owning their own home
• rent always costs much more in the long run

• when you buy a home, the mortgage company will require you to put a certain amount of money into the deal as a down payment
• this is usually between 3% to 5% of the cost of the home
• there are misconceptions that home buyers need as much as 20%, but this is usually not the case
• the best way to find out is to talk to a mortgage lender and know your options

• realtor fees can run from 4% to 5% of the sales price of your home
• if your home needs some work before selling, you'll also need to have the money to make those updates and repairs
• selling a home is much more stress than buying a home
• it usually requires months of planning and preparation to really do it right and make the most amount of money when you sell your home

• when you own a home, it is your responsibility to maintain the property
• you'll need to work on the landscaping, have the heater/AC serviced, and repair any damages to the property
• homeowners insurance should help you with costly issues, like roof repairs and major damages

• buying a home costs less in the long run and builds your financial situation
• renting a home is expensive and always leaves you without any true ownership or equity