Renting vs. Buying…What’s Best for you?
The decision to keep renting or to take the leap and buy a house is a big one! There are piles of factors to consider, and several realities to both that you may have not thought of.
The first thing to remember is that renting is not better or worse than owning; your decision should depend on your situation and what your short and long term goals are. Here are the realities…
Realities of Renting
- Maintenance Costs – Arguabley, the biggest benefit of renting are the low maintenance costs. Your costs are limited to almost nothing. If the furnace blows, the shingles need replaced, or the deck is rotten, all it takes is a quick phone call to your landlord and they can be fixed.
- Stress Free Living – Renting can lead to a more relaxing lifestyle. As a renter, you don’t have to worry about general maintenance, watering the lawn, staining the deck, painting the walls, etc. You just get to live.
- Mobility – As a renter you are not tied to one residence. If you want to move, you can move. It’s that easy! Once your lease ends, you’re free to go where you please.
- Cost – Rental rates can change quickly. They’re determined by supply and demand
- Moving Costs – Even though it’s nice to move whenever you like, moving does come at a cost. Even if you move yourself, you always seem to need new things in your new place. Whether it’s furniture, décor, or space, the costs will add up
FOOD FOR THOUGHT: generally, renting will be more expensive than owning. Landlords do not buy rental units to lose money. In the long term, renters will pay the landlords mortgage, property taxes, insurance, plus a small monthly profit. If you are currently paying less than all those payments combined, don’t bank on that forever.
Realities of Owning
- Home Sweet Home: One of the first things people mention when they talk about home ownership is that it is theirs. They get to make all the decisions. If they want to have a party, paint their daughters room goofy colors, or change the kitchen cabinets, they get to make the call.
- Long term stability: Another importance point for people is to be in a place for the long term. People get tired of moving around and they want a place to create lifetime memories. People want a place where their family can grow.
- Financial Benefits: The financial benefits that come along with owning a home can be vast. Unlike renting, when you own your own home, every payment you make will increase your savings. As you build equity, other benefits arise such as home equity loans, or simply creating greater wealth as well.
- Pride: The Canadian dream still includes a home. People are proud to have a place that they can call their own. There seems to be a different feeling driving up to your home, instead of someone else’s.
- Neighbourhoods: When you buy a home, you get to pick the neighbourhood you move into. With home ownership, usually also comes proud neighbours, good schools, and clean streets. These are things that can be difficult to find when you rent.
The differences between renting and owning can be vast! Owning a home requires you be be in a different part of your life than when you rent. Everyone has different desires and aspirations for their lives. Neither option is better, they’re just different, but once you get to the point where you start considering to buy, start with these things in mind.
If you’re still on the fence about which scenario is best for you, feel free to contact us with your questions! We’re proud to be an organization that offers both options to our clients. We own several rental units, as well as offer a unique Rent to Own program for those ready to take the leap into home ownership.
Visit our website at www.blairsrealestate.com to find our contact information, as well as additional information on how our Rent to Own program works.