Buying Vs renting is a never-ending debate. We are always told that buying is better than renting. But with the change in the era, those theories have become outdated. The cost of real-estate has shot up and is still rising. This has dropped the percentage of homeowners. If you are asking the question is it worth buying a home in Canada, there is no certain answer to it. Here are a few suggestions that will help you decide if you should buy or rent in Canada.
When is renting a good option in Canada?
Owning a house has a higher carrying cost than renting. If you rent a house, all you need to worry about is paying the rent and your utilities. So, you are left with some savings that you can further invest. This strengthens your financial footing as compared to a homeowner. You should be financially disciplined if you want this strategy to work. However, if you are not the saving and investing type, it’s better to buy home and develop a property. Else, you can get indulged in Canadian lifestyle inflation.
If you have rent control, it is better to rent a home in Canada. Rent control is when your landlord can hike your rent only by the inflation rate. This urban miracle keeps your cost of living low, in turn, you have more savings than you can invest further. Big cities like Vancouver and Toronto now implement rent control.
Now, if you move a lot, buying a house doesn’t make any sense, Canada or anywhere in the world. If you have rented a house, all you have to do is give your landlord the required notice which often is of 60 days and move out. Owning a home will tie you down. For relocating, you will either have to sell the house or find a caretaker. Both the options are full of hassles.
Renting, as we know, is cheaper than buying a house. So, if you are on a tight budget, renting is a better option. However, renting could get a little pricey in certain parts of Canada. So, you will have to look for something you can afford. It will still be cheaper than buying a house in Canada.
When you should buy a house in Canada?
When you want to build equity, buying a house is a good option. Every mortgage payment of your house builds equity for you, a part of your home that you own truth. Your every monthly mortgage payment is your one step closer to owning something you can call your own. You don’t have the privilege of renting.
If you are looking for a solid and good investment, investing in real estate, buying a house is a good option. You just have to hold on to the property for over five years to reap the benefits of selling it. It will also give you stability and privacy, something you don’t get in a rented house.
But remember, it is a commitment to buy a house. So, go for it only when you are completely ready. And there is ongoing maintenance cost and the bills are often endless. There will be less disposable income for you and the return on investment can be slow as well.
In short, it is up to you to decide whether is it worth buying a home in Canada or renting is the better option. Keep all the pros and cons in mind and decide what do you actually want. Set your priorities straight then decide.