Renting vs Buying a Home

Should you buy a home or rent? This is one of real estate's biggest questions. As you determine the best option for your next home, you will need to weigh your choices carefully.

Benefits of Renting

Renting a home is the right decision for some people. Renting provides greater flexibility if you are not sure where you wall be settling for the long-term. If you are new to Ontario and don't know the area, renting for a period can help you determine which neighborhood is right for you. Renting removes the need to perform upkeep on the property as well. Yet as a long-term investment, renting is not helpful, as you build no equity in a rental property.

Benefits of Buying

If you are settling in Ontario for at least several years, if not long-term, and know the general area you want to live, buying a home makes the most financial sense. By buying you will be investing in your future, because real estate tends to grow in value over time. Even if the value stays the same, every time you pay down your mortgage, you add to the value of your property.

When you own your own home, you get to make the decisions about it. Remodeling does not require a landlord's approval. If you want to fence in the yard, you can! Owning your own home gives you greater flexibility in how you use the home.

Which is Right for You?

So which is the right decision for you? The answer varies depending on your needs. If you feel that you will be settling in the area and know it well, and have the financial stability to make the purchase, owning your own home is likely the best option. If you are not ready to commit to an area, and need the ability to pack up and move should the need arise, then rental might be the better option for right now.