Buying vs Renting
In today’s market, there’s a lot of conflicting information about whether to rent or buy. Rising housing prices mean it’s hard for many people to buy, but since property is one of the best investments you can ever make, sometimes renting can seem like you’re throwing money away. Of course, there are pros and cons to both options and every person’s situation is different, so here’s our take on buying vs renting to help you make your decision.
You get on the market
The biggest pro of buying a property is that it gets you on the property ladder. Housing prices are continually on the rise, so getting into the market early will ensure you can buy your property for a good price
It’s the best kind of investment
Property is one of the best kinds of investment, and statistically, home values rise around 4-6% or more on average each year. Claire – is this a number you agree with or do you want to put another number here?
You have freedom!
Owning your home gives you the freedom to do what you want in terms of renovating and decorating your property. When you own the space, you can make any type of changes you want and design your home exactly how you like.
It requires a large investment
You will need to put down a sizable amount of money to buy a home, which may take away cash from other potential investments.
You’re tied to a city
If you’re a regular traveller, one con of buying a home is that you’re tied to the city. However, this is also a great investment opportunity, as you could simply sublet your home and turn it into a rental property, and the rental cost can cover your mortgage!
The great thing about renting is that you don’t have to worry about decorating, plumbing, and all the maintenance work that owning a house requires.
Renting is the first step towards becoming a property buyer, and it grants you the independence of living wherever you want without a huge investment. Plus, you don’t have to foot the bill for condo fees and maintenance.
It’s easier to switch rental properties than it is to move out of your own home. Many people rent in different areas over the course of a few years to see where they like best, in preparation for buying.
With a rental, you’re investing money every month into an asset that you don’t own. In the sense of ROI, it’s a fairly dead investment because the money isn’t being used to pay a mortgage or a loan.
You can’t make any changes
Since you don’t own a rental, you can’t really make any changes to the rental unit, which can be restrictive and somewhat frustrating.
Damage can occur
If you live in a multi-unit building, there’s always the possibility that your neighbour on the floor above could flood their bathroom or kitchen, leaving you with a flooded apartment and the inconvenience of having to move out.