When you’re first thinking of buying a home, it can be difficult to decide whether to continue renting an apartment or house, or whether to take the leap and purchase a new home.
Although it may be a better option to rent if you aren’t sure where you want to stay long-term, owning a home definitely has some pro’s. Here are a few reasons to buy a home versus renting an apartment, condo or house.
Every month that you pay your mortgage, you are gaining equity. So while renting may seem easier, in the long-term you gain because you are putting your money into an investment which you can later sell if you decide to upgrade.
A mortgage is a great way to save because you always find a way to pay your mortgage, whereas to try and start investing might seem like a far-off dream.
Let’s say that you decide that it’s time to invest, so you plan on saving a certain amount each month. But, something comes up and you need to cut back your spending. You will always find a way to pay your mortgage when other items get seen as unnecessary at the moment.
Same Monthly Cost
In the 2018 Canadian Rental Housing Index four in 10 renter households spend more than 30 per cent of their pre-tax income on rent.
Canadians are paying approximately $1,000 a month on rent on average, but those numbers vary from province to province. In Ontario the average is $1,109 a month spent on rent. With the average price of a Sudbury home in 2017 being $254,000, it means that buying a house and paying a monthly mortgage would be very similar, if not less, than renting.
When you make the decision to purchase a home, that comes with the feeling of stability. You are planting roots in a neighbourhood and start to learn who your neighbours are, the local businesses nearby, etc.
Renting an apartment or home can have a very similar feel, however, that feeling of knowing that you own your home feels different than renting a space from a landlord.
It’s quite easy when you’re renting to decide to pack up and move somewhere else, whereas when you have purchased a home, you have more responsibility, more invested, and it would be more expensive to just move elsewhere.
What are your thoughts? Do you prefer renting an apartment or owning a home? Share your thoughts with me.