Renting versus Buying A Home

The renting versus buying debate will always exist and of course there are proponents in favour of both sides. The most important consideration in this debate is how much could the person afford. There are other factors at play in this debate which could tip the scale toward one side such as preference of home ownership, peace of mind, safety issues, maintenance and repairs, interest rates, utility rates, stability of housing market, terms of lease and dependency on a vehicle.


Pros of Renting

  • Most often lower monthly costs for lease payment versus home ownership mortgage payment
  • Monthly costs are fixed in nature until lease is renewed by landlord (usually by inflation)
  • In times of rising utility costs a tenant that rents will not feel the pinch of rising utility costs
  • If living in the city, a tenant that is renting may have shorter commute costs and may not even need to own a vehicle which may lead to further savings on out of pocket travel costs
  • Usually leases are for one year and there is much more flexibility to move to another rentable space or even consider home ownership
  • Tenant does not have to pay property tax on the property

Pros of Buying

  • Having home ownership and feeling of having your own space
  • Can build equity as your mortgage is being paid off
  • Can offset any mortgage payments by renting out a portion of the home which rentable space is considered to be taxable property income
  • There is a feeling of safety which home ownership conveys

The Rent versus Buy scenario calculator can be accessed HERE.

 
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