Deciding between renting and buying can be overwhelming. Here are some important things to consider when trying to make your decision:
Many renters appreciate not having to worry about maintenance. Landscaping? Taken care of by the landlord. Leak in the roof? Taken care of by the landlord! Shoveling the fresh 6 inches of snow? Your landlord will take care of that for you. As a homeowner, you would be responsible for paying any costs associated with house repairs – such as a new roof if the shingles start to fall apart, or new floors if you’re hit with a surprise flood. These repairs can add up. If you don’t have the extra cash saved to cover these expenses, what would happen to your home? To your credit? Renting can be less stressful.
Renters appreciate not having to worry about the additional costs required to maintain the landscaping of their property. This could save anywhere $100 to $200 per month on the low end. Your landlord (depending on your agreement) would be responsible for shoveling the snow, trimming trees, cutting grass and general upkeep – all without having to concern you. You can live stress-free in a gorgeous suite without worrying about the extra costs. This will help you save money in the long run.
With renting you have the option to change your scenery as often as you choose (depending on your lease agreement). We are all aware how life can change at the drop of a hat, with new additions to the family – more kids, new spouse, children moving out – having the ability to upgrade to a larger property or downsize to a smaller one is simple. You are not tied down to one location, one city or even one country when you rent.
When buying, you will have to consider lawyer fees, property taxes, down payment, etc. If you’ve bought yourself a condo, you could have condo fees on top of your mortgage payment, ranging anywhere from $200 to $600/mo. When renting, you are paying your monthly rent (pet fees and any other extra options you’ve arranged for an additional fee) without needing to spend more on top of that.
When you consider all the extra costs, renting could save you a lot of money.
Many rentals will include your utilities, some will have extras included such as parking, internet, and cable, which will all benefit your pocket! Not having to concern yourself with these additional monthly fees will help you save money and help to keep yourself debt free. The money that you spend every month as a homeowner could be used towards other things like that dream vacation you have been planning for years. You could also upgrade your rental suite and move to a more stylish downtown unit, or to an up and coming neighborhood that would bring more ease to your family lifestyle. There is even the possibility of cutting back your living costs by walking, riding your bike, or taking the transit to work. Renting will give you the option to splurge a little more and worry a little less.
To sum up, the cost of buying can add up quickly when you consider the maintenance, taxes, mortgage, and utilities for your new home. When you rent, these types of responsibilities are already taken care of for you! If you are not ready to tie up your money or confidently settle down roots, you should consider all of your options. Do your research and seek out professional advice before signing on the dotted line.