Not Sure Whether to Rent or Buy? Let Me Help!
Ah, the big rent or buy debate! When you rent a property, people always tell you to buy instead, and when you buy, people will tell you you’ll have no money for anything else. Well, as a real estate agent who’s been involved in the real estate industry since I can remember, I’m here to share my thoughts on whether renting or buying a property is the right move. But remember, both are ideal for certain circumstances. Let’s get into it!
Renting Advantages
Can Be a Cheaper Option
Renting can be cheaper for those who don’t have the savings for a downpayment or don’t plan on staying in the same place for a long time. Plus, monthly, you end up spending less. However, you do end up spending money on someone else’s mortgage rather than your own – contributing to their investment.
You’re Not Responsible for Maintenance
The one great thing about renting is you’re not responsible for maintenance hassles or expenses. Whenever there are issues, tenants can just call their landlords to get them fixed. When you own the property, it can become a nightmare sometimes.
One Easy Bill
Every month you have one all-inclusive bill to pay, making things easy. You’ll know the exact amount you pay each month and what day it comes out – there won’t be any surprises. When you own a property, you have to pay multiple bills and factor in maintenance, property taxes, utilities, condo fees, home insurance, and more. That can be stressful in itself!
You Can Move When You Want
Renting is great for those who don’t plan on staying in a neighbourhood for very long. For example, if you plan on traveling to Australia to work next year, consider renting for now to save money. Financial benefits from buying a property do take time, so you shouldn’t invest short term. Renting is commitment-free!
Buying Advantages
You’re Investing in Yourself Instead of Someone Else
Even though some of your monthly payments are investment payments to the bank, the rest is going towards building equity. You are essentially investing your money to have a greater return in investment once you sell your property years down the line. This means you’re investing in your financial future instead of contributing to someone else’s!
It Could Be Cheaper to Buy
In some cases, it is actually cheaper to buy a property, especially in Toronto and throughout the GTA. The Toronto rental market is not cheap, but places away from downtown could be a lot more affordable to buy. It all depends on the downpayment and how much you can afford monthly.
It’s One of the Best Investments You Can Make
Ever heard the quotes, “Owning a home is the keystone of wealth” by Sue Orman or, “Ninety percent of all millionaires become so through real estate” by Andrew Carnegie? Well, these are some of the most famous real estate quotes for a reason! It’s because real estate is one of the best financial investments you can make! Over time, you really do profit. So if you have the finances, you should definitely think of buying.
You Have Total Freedom
Just think, when you own your own place, you will never have to deal with another landlord again. Yeah, they’re great for maintenance fixes, but sometimes landlords can be a nightmare. Some don’t let you paint or make upgrades, and you can fix up and decorate the place just as you’d like. This is now YOUR property – do with it what you please!
Conclusions
As you can see, there is no right answer for every person – it’s all circumstantial! Some need to rent for convenience, and some need to buy for future stability. However, I do suggest at least planning on buying a property in the future. It doesn’t have to be right now, but in order to reap the benefits from buying, you have to let time pass. So, start saving for a down payment as soon as you can!
Call Zoie Conforti Today!
If you’re not sure where to start when it comes to renting or buying, I can help you get started! Give me a call at 647.293.8773 and let’s achieve your real estate goals!
Real estate is in my blood! My entire life, I have been exposed to the intricacies and complexities of the real estate spectrum from resale and land development to pre-construction and closing. I not only can make your homeownership dreams come true, but I have the experience to get your home on the market and sold in no time!