There are advantages to both renting and buying a home. Make sure you understand the benefits and responsibilities of each before you decide what’s right for you. Let’s discuss some pros and cons of owning a home versus renting to see which option is better for you
Renting
Pros:
- Less maintenance and repairs
- Lower monthly and upfront costs
- Shorter term commitment – makes it easier to move to a new home, neighbourhood or a city
- Possibility to use cash to invest or to save for a higher down payment
Cons:
- You are paying someone else’s mortgage rather than building your own equity
- Monthly rent payments may increase year after year
- You have to get your landlord permission for making any changes
Buying:
Pros:
- You are building your own equity than someone else’s
- Potential for increase in your equity with shift in market
- Potential for additional income through rental income if you rent a secondary suite
- Stability and peace of mind from owning a home
Cons:
- The risk of financial loss with a shift in market to downward trend
- Responsibility for all ongoing costs including mortgage principal, interest, taxes and maintenance
- Monthly payments can increase with increase in interest rates
- Possibility of unexpected and potentially costly repairs
If you need renting or buying a home advice, please contact us!
