HELPING YOU FIND YOUR WAY HOMEWARD
RENTING VERSUS BUYING
For many of you – new to Toronto or not – the question is often: Should I rent or should I buy?
Depending on your economic circumstances and what the real estate market is like at the time, there may not be a clear answer. Usually it makes sense to buy as you will be building equity through your own home ownership rather helping ‘giving’ your money to a landlord.
That said, there are also some good reasons to rent:
Location, location, location – One of the key benefits of renting is that you likely are able to live in prime areas of the city that would otherwise be too expensive to buy in. It also gives you better opportunities to choose how close you are to public transit, your place of employment, shopping, etc.
Cost – In most cases, renting will leave you with a higher level of disposable income. With the extra availabel income, you can save up for a downpayment on a home or spend it on travel or other lifestyle activities you enjoy. As with buying, working with a realtor to help you find the best place also does not cost you anything! Any fees or commissions are paid to your realtor by whoever is handling the rental.
Flexibility – There may be times where you are not ready to settle in one area or be tied to home ownership. If you are renting, you can simply pack up and leave at the end of your lease, without having the issues of listing your property and eventually finding a buyer.
Lifestyle – If you are a student or single person, you may prefer not having the responsibility of owning and looking after your home or condominium. You may also want to rent with a roommate in order to reduce your cost of living further…and renting easily accommodates that situation.
Ease – Renting is easy! You don’t have to look after snow shovelling or lawn care…you can go away on vacation without having someone check on your home regularly…and you can call on property maintenance staff whenever anything breaks down.
There’s no right or wrong answer as to whether you should buy or rent. Only you will know if you are at a point in your life where you are ready to buy. If you feel that you are not then you should rent in the interim and reassess your decision to buy at a later time.