Following the tumultuous economic turmoil of the recent decades and unfavourable interest rates, owning a home right now might not sound like a great idea. Don't get me wrong; homeownership is one of the most sought-after lifelong goals for most Canadians. While both buying and renting a home comes with their own set of unique challenges and advantages, the latter trumps the former. And, here are top reasons why.
#1. You'll Access to a Variety of Amenities at No Extra Cost
One of the most significant economic benefits of renting, as opposed to buying, is that you'll have unfettered access to amenities that would otherwise cost you put of pocket cash. Talk of luxuries like community swimming pools, wellness & fitness centres (gyms), BBQ spots, membership clubs, and so forth; these are often available to tenants at no extra charge.
#2. Say Goodbye to Hefty Repair and Maintenance Bills
Depending on the agreement you have with the landlord or leasing company, as a renter, you have no repair bills or maintenance costs to foot. All these expenses are taken care of by the landlord, taking financial pressure off of you. Homeowners, on the other hand, have to pay for renovations, repairs, and maintenance, three costs that can rack up pretty quickly.
#3. Renters Don't Have to Pay Property Taxes
Here's another no-brainer reason to rent that makes lots of financial sense. Calculated based on the estimated home value, real estate taxes can be a substantial financial burden that can take a toll on your household income. As a renter, you don't have to lose sleep over these property taxes.
#4. No Huge Down Payment
Another financial benefit of renting over buying a home is that you don't have to put down a massive deposit to a rental apartment or property. On the other hand, if you are going to take out a mortgage to buy a home, the chances are that you have to have a reasonably large amount of money to pay as down payment, usually 20 percent of the buying price.
#5. You Have More Flexibility & Freedom
When you move to a rental property, you will likely have to sign a 6-month or one-year lease. That means you are only tied to that property for between 6 and 12 months. Once that time elapses, you can move to wherever you want without any financial ramification. Unfortunately, you cannot say the same about buying a home.
There you are- 5 top reasons why renting makes more economic sense than buying. It all boils down to costs and financial freedom. If you are looking to rent an apartment in Western Canada contact Mainstreet Equity to learn about our cost-effective, newly renovated suites.