Should you Rent or Buy a House?

Should you Rent or Buy a House?

By

Neha Kaur
*

Published in

Home Buyers
*

01 Jun 2021


Renting vs. Owning a Home: What's the Difference?

Buying or renting a property has been a question that many of us have or will ask ourselves at some point in our lives. The correct answer to such a question comes from assessing our personal situation in our everyday lives. Some people may experience unexpected career changes or personal changes, however the need for a roof over our heads is the same at any stage of our lives. Renting or buying a House to live in requires thorough research so we do not end up making the wrong decision costing us financially. It is always highly recommended to go through all the possible pros and cons prior to deciding to either rent or buy a property.

Choosing between renting or buying a home can be difficult as there are advantages and disadvantages of both. Ultimately – the decision is yours. However, to help you with your decision, we have compiled a list of pros and cons to differentiate between both options and make you realize the better choice for you and your family. Buy or Rent.png

When to Buy a House

  • It is ideal to buy a property when you are 100% positive about putting down your roots in a desired neighborhood for the following five or more years.
  • When you are all set to take on the responsibilities of becoming a homeowner - mentally and financially. Homeownership has lots of responsibility, which is not in the case of renting a property. You will have to deal with a range of obligations including home maintenance, filing property taxes, repairs, etc.
  • When you are ready to make all the necessary financial sacrifices to put your down payment, cover monthly mortgage, and set aside funds for other homeowner expenses, then buying a property is a great option for you. Being a homeowner increases your financial responsibility and liability. If you have unavoidable monthly expenses that you cannot escape, you should reconsider your affordability to buy a home as this could hinder with your financial situation in the long run.

Pros

A large benefit that comes with buying a home is the sense of pride that comes with it – the fact that you are the owner and you will not need to pay rent to anyone brings in self-gratification. Additionally, you will be in charge of everything you want to do with the house – any renovations are your choice. Many people like the idea of being in control of the space they live in – therefore, they opt for this option. Additionally, buying a home can be a good investment for the future.

Cons

The disadvantage of buying a home would be the additional costs that comes with it – which is why many opt for renting. However, if you are able to financially afford a house, buying tends to be the better option. Additionally, as a home-owner, you will have more responsibilities with your home, such as maintenance and paying all the bills.

When to Rent a House

  • If you are not ready to settle down and have not thought of your long-term plans whether it be other commitments such as going back to school for a course, transferring city for a new job, or other such scenarios which may require you to relocate homes frequently.
  • Another good reason for renting a property is when you are financially strapped for cash. Affording a down payment or monthly mortgage required to buy a house is not in the achievable. In this case, renting a property is always the best and practical decision to make.
  • When you have a large amount of debt. It is always a smart decision to focus towards eliminating your debts first and then planning on buying a home as a larger purchase. This way you will not incur further debt on existing debt.

Pros

An advantage of renting a home is the flexibility you will obtain, compared to buying. With renting you may be able to get a contract for a few months – or for however long you will need it. Other than the contract, you will have no other obligations to the home. Therefore, it is a lot easier to move around if necessary. If you want a lifestyle of constant changes – this may be the option for you. In addition, renting a home is a cheaper alternative to buying one. Buying a home comes with multiple expenses – your down-payment cost, mortgage payment, closing costs etc.

Cons

There are disadvantages to renting a home. One disadvantage is that you will not be in charge of the home you are living in. You will have a landlord that you pay rent to, and the landlord is able to make changes to the house as they see fit. In addition, it can considered be a lottery system with who ends up being your landlord – you may experience landlords that give you a difficult time when you are renting with them.

All the factors listed above, there are convincing arguments on both sides. Having a steady job and solid financial source of income often assists in making the decision-making process easier and more simplified. Remember you must keep in mind many other factors such as staying in a neighborhood long term and other future opportunities as these will play a vital role in your decision-making journey to either rent or buy a property.

Contact Dale Mundi & his team, we have the tools to help you every step of the way. Looking to buy or rent a property ? Use our listings tool today! Start your search with us. Check House For Rent Near me, Houses For sale in Welland, Condo For Rent in Downtown Toronto, Real Estate in Niagara, MLS Listings in Mississauga. For more information visit our website www.dalemundi.com

Loding data...
Contact Us
  [email protected]
  416-413-1313
  206-7895 Tranmere Drive
Mississauga ON L5S1V9
Socials


REALTOR®, REALTORS® and the REALTOR® logo are certification marks owned by REALTOR® Canada Inc., a corporation jointly owned by the National Association of REALTORS® and CREA.
MLS®, Multiple Listing Service®, and the associated logos are all registered certification marks owned by CREA and are used to identify real estate services provided by brokers and salespersons who are members of CREA.
© 2021 Dale Mundi | Real Estate Hut Realty Inc. All Rights Reserved | Guglu Homes