Our clients often ask if they should buy or rent in Toronto. So here we discuss the pros and cons of buying vs. renting in Toronto. Including all the key factors to help you decide which is best for you.
With about 6.1 million residents and over $308 billion in Province GDP, Ontario is the largest state in the Midwest and the anchor of the regional economy. Much of the activity is centered in Toronto, but there are major businesses and industries spread throughout the state, ensuring a steady stream of new employees and families moving into Toronto Ontario.
First, we’ll discuss the best reasons to buy in Toronto. Then we’ll get into the best reasons to rent.
Freedom is for many people the primary reason to buy a home. When you’re a homeowner you have total freedom to express yourself creatively and productively in your space. For many, this translates to a higher quality of life. For example, homeowners have the freedom of creative expression and choice. You can choose to transform an older kitchen into a modern hub of social activity for friends and family. You own it, you decide! Of course, if it’s a condo you’re buying, this freedom may be curtailed a bit by the condo bylaws, rules, and regulations.
When deciding whether to buy or rent in Toronto, building equity may be one of your primary reasons. Each month a portion of your mortgage payment is applied toward paying down your loan principal. So, assuming the housing market appreciates (no guarantees!) when you sell your home years later, you receive the principal you paid in plus money from any market appreciation.
You’re paying your mortgage instead of someone else’s: While part of every mortgage payment is interest paid to the bank, part of every mortgage payment goes towards building equity.
The Advantages of Renting a Home:
Not happy with your neighborhood? You can move every year:
Tenants have the ability to easily and affordably move every year if they want to; the real financial benefits of owning happen over time. If your time horizon is short or you’re a commitment-phobe, consider renting instead of buying.
Owning a home can be expensive at times. If you’d prefer not to pay for those things that go wrong, then rent. For example, if you rent and the HVAC fails, of course, the landlord pays the big bucks to replace it.
it’s cheaper to rent:
On a monthly basis, your overall expenses will often be cheaper when renting instead of buying. That’s especially true if you don’t have much of a down payment. But of course, when you rent, you’re paying down someone else’s mortgage instead of your own.
If you want to discuss whether you should buy or rent, just call Lez Gomez the best mortgage agent in Toronto or send us an email. There is no one answer to the question, but we’d be happy to help you evaluate your options.