When considering your future plans, you may have questions about the benefits of renting vs buying. Many experts claim that renting makes more sense in today’s economy since it may be risky to put all of your money in a single asset. In addition, there are so many advantages to renting! Read on for our top picks.
You Aren’t Responsible For Repairs
Homeownership comes with a year-round maintenance list of repairs and fixes. The associated costs—not to mention the headache of planning repairs—is certainly something renters are better off without! Great property managers will quickly and responsibly repair appliances, plumbing, and anything else that needs attention—all at no cost to you! When renting, you can rest assured that the maintenance of your home is in someone else’s hands, and you will be thankful for the extra room in your budget.
You Don’t Have Upfront Costs
Besides a downpayment, which would be sizable on any home in the GTA, there are many other upfront costs that come with home ownership. Add to this legal fees, land transfer taxes, and insurance, and the upfront costs of home buying are in the tens of thousands. When compared to renting, the benefits are clear. The only fees involved when securing rentals are first and last month’s rent and any moving costs you incur. It’s no wonder many young Canadians choose to save more and continue renting when you consider upfront costs.
You Have Flexibility Over Where You Live
A standard twelve-month lease is a much shorter commitment than a mortgage. Many young people living in cities have lives that are in flux, and may need to move on short notice for school, a job, or a partner. Renting allows for much greater flexibility than owning! As a plus, under Ontario law, once your lease is up you move to month-to-month tenancy while still being protected by the same agreement.
Your Rent Stays The Same
Many mortgages have fluctuating rates that can go up or down according to the interest rates, and property taxes can increase unexpectedly. In Ontario, as long as you have a lease agreement your rent will only be raised by a small amount (usually one or two percent) that is set by the province. You can plan your budget much better with the advantage of knowing what your housing costs will be!
These are just some of the benefits of renting that many people are enjoying. From flexibility to a lack of stress over repairs, there are many reasons renters are happy! Don’t forget to follow along on the Medallion blog and be sure to check back for more tips on renting in Toronto.