To Rent or Own, That is the Question

Torn between buying or renting? With so many contradicting opinions bombarding the media, it could be difficult to make your own decision. Here are a few reasons why buying may be your best bet.

Assuming you’re in a position where either are viable options and you have (or will have) enough for a down payment, then it could be more worth it to buy. With the cost of rental units in the city being as much as, or more than mortgage payments, spending all that money on paying off someone else’s property doesn’t seem like the best choice. There are other factors to consider; for example, is the home you’re purchasing one that you can see yourself spending several years in (at least)? Will the home appreciate in value over time?

Purchasing an investment home can be risky, like most investments, because it depends on external factors like the housing market and economy. If you purchase a home with the intention of living in it, chances are you’re taking all of the important factors into consideration, like the community it’s in. Since you’ll probably be spending the next few years in this home, you’ll be looking at nearby amenities and access to main transportation routes like highways and public transit. Perhaps you’re hoping to expand your family and are looking for a good selection of primary and secondary schools, as well as green recreational spaces or fitness centres. All of these things will help appreciate the value of your home in the long-run, so that even if the housing market does run into trouble, you won’t be under any particular pressure to sell. After all, having a home to sell makes more financial sense than just giving away your money to a landlord.

The luxury of home ownership is a convenience that allows you to customize your lifestyle. Wherever you want to be in the Greater Toronto Area, you can find properties that match your needs and wants. An added bonus is that homebuilders often offer incredible incentive programs, and if you’re a first-time buyer certain rebates are available through government programs.

Scotiabank  has a great online calculator that helps you determine whether buying will save you money in the long run in relation to mortgage payments and increasing home equity versus renting.

If you’re still unsure, think about the other added bonuses of homeownership, you can have pets, you can decorate and renovate however you want, and you can call this awesome space “your” home.

Feature Image via Granite Homes