Buy? Rent? What works for you?

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It is the dreaded question that we ask ourselves. There are a lot of factors that play into this, I know believe me. My good friend is currently struggling with this.

You make enough money to own but may not have enough money for a down payment. You are unsure if the market will turn. You are unsure of how to even begin the process.

The upside to all this is I can help answer all these concerns. I have helped numerous people figure out their options and come up with a plan that works for them.

If you own a home you can pretty much bet that the equity in your property will and has gone up over time. This is obviously a great thing for you. On the other hand people renting are left with no property investment but in saying that may have enjoyed a lower cost of living, which may free up money for other financial opportunities.

Let me give you some pros and cons to each.

Renting

Low-risk, less hassle.

Advantages of Renting.

  1. Typically just one monthly payment that you know. It may include utility payments as well, if not just a small added cost.
  2. No worries about any upkeep or maintenance issues and expenses due to maintenance issues. If something has to be fixed it falls on the landlord. You just sit back while it gets fixed at no cost to you.
  3. Move when you want. After your lease runs out you automatically go month to month. If you’re tired of the area you live in give your notice and move. That’s it! There is nothing holding you to your rental. Unlike a home owner who cannot just pick up and go you can should you choose to.

Owning

Pride of ownership!

Advantages of owning.

  1. Solid investment! GTA real estate has been a better investment over the long term. As with anything, with reward comes risk. In saying that paying off a mortgage puts more money in your pocket in the long run. Once it is paid off, it yours. No more payments! When and if you sell those are all profits to you.
  2. You own your space! No one can tell you how many people you can have over, if you want to renovate then go ahead. You do not need to ask permission. This is your home. You make the rules.
  3. Every payment you make towards your home is just that. You are not paying anyone else’s mortgage like you do as a renter. For every mortgage payment you make you are that much closer to saying I own my home outright!!! Couple that with your home going up in value and you not your landlord is winning.

Curious to know what some of the costs are when buying?

  • There is land transfer tax, that needs to be considered.
  • There is what your monthly mortgage cost will be.
  • There is if you are putting less than 20% down CMHC insurance.

Check out my easy to use calculator to determine these costs.

If you want to talk in more detail about the pros of buying or renting give me call or drop me a note. Let’s connect!

Cheers!

Derek Ladouceur
Sales Representative Re/max Hallmark
Torontocityrealtor.ca
Office 416-699-9292
Direct 647-206-9946
Recognized top 1% of Realtors in Toronto