Renting a home vs. buying one is the age old question of moving. Instinctively, you may think that buying a home is the obvious choice. But that’s not always possible. And it’s not even always the best choice. In fact, both renting and buying have benefits and drawbacks. The right answer will depend on the situation! So when you’re having a dilemma on renting a home vs. buying one, make sure to consider all the pros and cons of each. The answer may not be what you expect!
Renting a home vs. buying one: things to consider
Sometimes there’s really no choice to make. If you can’t afford to buy, you rent. When you only plan on staying for a little while, you don’t really want to invest in buying. These are simple choices. But deciding between renting a home vs. buying one isn’t always as easy as it seems. There are pros and cons to both alternatives. And when you’re moving to Ontario you want to consider all your options. Start by asking yourself these questions:
- How much money do I have? How much can I afford to spend?
- Do I want stability or flexibility?
- How long do I plan on staying in my new home?
- Do I want to be personally responsible for bills, utilities, maintenance, and repairs?
- What are my goals after the move?
Be honest with yourself because the answers to these questions should nudge you in the right direction. Generally speaking, renting a home offers you more flexibility and is cheaper in the short run. Buying a home, on the other hand, is a long-term investment that offers you stability. It really all depends on what you’re looking for.
Renting a home vs. buying one: the pros and cons
Before making a decision on renting a home vs. buying one, take the time to carefully weigh your options. This is a huge choice that will impact not just your relocation but also your life! You’ll have plenty of time to find professional moving services Sudbury later. For now, focus on figuring out whether buying or renting will be best for you.
Renting a home
As a society, we often think of renting as a subpar option. We see it as a stepping stone to owning a home, a transient state. But that doesn’t have to be a bad thing! After all, we also say the road there is just as important as the goal, right? Sometimes you’ll find exactly what you’re looking for in a home in a place you rent! So keep an open mind as you consider both the benefits and downsides of renting.
The pros
The biggest and most obvious benefit of renting is the fact that it is the more budget-friendly option when you look at the short term costs. While most leases require you to pay a deposit, this is up to 5-10 times smaller than the initial investment into buying a home. Of course, rent costs add up over time. But renting is still cheaper than buying a home in the short run. If you’re only planning on living in it for 4-5 years, you will still pay less for rent than you would for a mortgage on the same property. You can use the extra money to invest in your education, social life or simply a savings account.
You will also have fewer responsibilities as a renter than as an owner. While it’s a given that you should take care of the property seeing as it is your home for the time being and you have a deposit to take into account, any serious repairs to the property won’t be on you. As a renter, you can contact your landlord about issues with the property. As an owner, you must deal with them yourself.
Finally, renting a home gives you infinitely more flexibility than buying one. Since leases are relatively short term, you are always able to leave if you find someplace better. If you own a home, this isn’t quite as easy as packing up and leaving once the lease runs out.
The cons
The big drawback of renting is that the property is not yours. Any major decisions regarding it will not be on you. In fact, most of the time you will even be limited in the changes you can make to the place. So read your lease very carefully before you sign – it is your biggest insurance policy against unjust treatment, losing your deposit and even eviction.
Buying a home
Buying a home is what we all dream of, isn’t it? But once again, things aren’t that black and white. Your home owning experience may be off to a bad start due to some common mistakes people make especially as first-time buyers. So consider your options carefully!
The pros
When considering renting a home vs. buying one, the clear benefit of buying is that the home is then entirely yours. That means you can do more or less whatever you want to the property whether it’s redecorating, remodeling, expanding or even just selling it on. You also don’t have to play by anyone else’s rules! It’s your decision to move in with family, children or pets, or even lease out to a third party. Many find this kind of freedom priceless. Additionally, buying a home is an investment that can even improve your credit rating.
The cons
The obvious drawback of buying a home are the costs. Not only are initial investments much larger than when you’re renting but you will also have to pay for insurance, maintenance and, of course, a mortgage whose amount may be subject to change. So make sure to calculate your expected costs early on in the decision-making process so you have an idea of what you’re working with!
You should also keep in mind that the security of owning a home gives you comes at the cost of flexibility. As an owner, you cannot simply leave for another town because of a better job offer or change your mind when you see a house you like better. And the fickle real estate market ensures you never really know how hard it’ll be to sell or how much you can sell for until the time comes.
So what is the best choice for you? Only you can answer that! Ask yourself what you want, take the time to weigh the pros and cons and chose what fits your needs at the moment!