Should You Rent or Buy

What Came First The Chicken or Egg?

Most of us look at buying a home or condo as the biggest financial investment we will ever make; however a case is to be made where renting and investing your money may offer a better return. In a couple of weeks I plan on making a detailed analysis of this issue, but for now lets just go over the advantages and disadvantages to this debate.

Renting a house or condo

Advantages:

  1. Little or no responsibility for maintenance
  2. 60 days notice and you are gone
  3. Lower monthly costs than purchasing similar unit

Disadvantages:

  1. Little tax advantages
  2. Unable to renovate or landscape
  3. No equity return
  4. No control over rent increases
  5. Generally buildings not as well kept
  6. Possible eviction is owner sells the unit

Buying a home or condo

Advantages:

  1. Property will build equity
  2. Able to budget mortgage and taxes over time
  3. Able to renovate or landscape to your tastes
  4. Able to be part of the neighbourhood
  5. NO LANDLORD
  6. Access to government home tax benefit programs

Disadvantages:

  1. Maintenance and repairs are your responsibility
  2. Property tax increases and any special assessments
  3. Less mobility
  4. Risk of foreclosure
  5. Vulnerable to drop in property values

You will know what best works for you. Once new home buyers make the decision to purchase a home, having crunched their finances, they have all the tool ready to make this major commitment and investment.