Infographic: Renting vs. Owning: Why You Should Take Pride in Your Rental
Does it ever feel like everyone around you is trying to buy a house? Do you ever feel like that’s something you should be saving for? Does it make sense for you? Is it worth it? Did you know you are not obligated to buy a house in your lifetime?
The Challenge of Saving Up To Own A Home
Sure, home ownership works for some people, you know—that established family with 2.5 kids, a golden retriever, and a minivan—but there are a lot of reasons it just is not an option for some people. For example, saving up for a down payment can be a barrier for many would-be homeowners, especially as you’d need to balance this with monthly rent costs. That’s why renting doesn’t just have to be a stepping stone before you buy a home. In fact, it’s a popular long-term living solution for many with a long list of benefits to consider.
Benefits of Being a Renter
More people than ever are renting today—especially young professionals in metropolitan areas—but renting often does not carry the same sense of pride as owning does. There are many benefits to renting and many ways to earn equal or greater investment equity over time without ever owning a home.
For example, because renting is generally cheaper than owning, you can invest your money elsewhere and see returns over time. You also don’t have to pay for most maintenance issues, saving you money when you have a plumbing or electrical problem.
With that said, here are some other reasons you should be proud to rent, and why homeownership is more than just a mortgage.
Finances
Renting
Renting requires no borrowed money. The upfront expense is usually the first and last month’s rent and possible utility/security deposits.
You can expect your monthly rental expenses to be fixed without much variation aside from utilities.
Owning
The average cost of a home in Canada is $729,700.00.
Families, on average, save up to 10 years for a downpayment on their first home.
Homeownership comes with extra costs, including taxes, home insurance, and more.
Flexibility
Renting
Renting offers a chance to explore different areas, apartment styles, and budgets easily.
Coming and going as a renter is much easier than selling with options like subletting and lease assignment.
Owning
Owning a home offers the freedom to change whatever you want in the home or on the property.
Leaving your home as an owner requires more work. You can become a landlord or try to re-sell your home, which can be indefinite & inconvenient.
Investment
Renting
As a renter, you will not see a direct return on the money you pay towards rent when you leave.
Because renting is cheaper than owning, you can invest money elsewhere, like a Real-Estate Investment Trust (REIT) and still see a great return over time.
Owning
Generally, housing prices almost always increase over time and owning could prove to be a great investment with good equity.
Housing prices rely heavily on the sometimes unpredictable market in which you are buying or selling.
Maintenance
Renting
When you rent, you are usually not responsible for repair costs exceeding $50.
Unexpected and large-scale home repairs are covered by the landlord, who must provide and maintain a habitable residence under law.
Owning
As a homeowner, you will be solely responsible for all repair & maintenance costs.
The rule of thumb is to budget 1% of your home value toward repairs & maintenance such as roofing, appliances, heating & cooling, and more.
Final Thoughts on Renting
Whether you buy or rent, you should be able to take pride in your decision. From saving up for a down payment, the excitement of exploring other neighbourhoods (and even cities), or the convenience of a maintenance-free rental—there are options for every person or family.
If you’re looking for an apartment or townhome to rent in Ontario or Quebec, find your next home with CLV Group! We have a ton of apartments in different sizes, styles, neighbourhoods, and cities for your convenience!