The Pros and Cons of Buying vs Renting

The Pros and Cons of Buying vs Renting

Should I buy or rent a home?

Which is the better decision for my current situation?

This is an obvious dilemma that thousands face when they entertain the dream of owning a home. There is no definite answer to this question because both buying and renting have their own pros and cons.

Let us take a quick look at the pros and cons. You should weigh all the possibilities before making any decision that will affect you in the long and short-term. For More Williams Island Real Estate

Pros of Buying a Home:

  • Owning a home triggers the growth of your personal wealth and provides you long-term security and equity.
  • Housing demands will always surface in the real estate market, so you can sell your home any time in the future to earn a good profit.
  • Owning a home gives you greater freedom. You can use the home, renovate it or change its appearance without being restricted by a landlord.
  • You can derive a continuous earning from your purchased property by renting it out to tenants. You may also use this income to pay your home loans and other large, critical expenses.
  • You will get the opportunity to save some extra cash at the end of the year by claiming a tax deduction on your home loans.

Cons of Buying a Home:

  • A landlord cannot deny their newfound financial liabilities like bond repayments and housing maintenance costs.
  • A landlord is obliged to pay his mortgage interest rates, insurance premiums and taxes on a monthly or yearly basis.
  • Sometimes a landlord may not benefit from selling their home. This risk occurs especially at the time of an economic recession or simply through a particular location becoming undesirable.
  • A landlord is immobile and inflexible in terms of moving in or out of their property. They will need to buy a second home before abandoning the first one or find a suitable tenant before moving out to another location.

Pros of Renting a Home:

  • Tenants have no long-term commitment towards a property that they live in. This results in far fewer headaches.
  • A tenant can move in or out much easier than if they were homeowners. In the case of job relocation, this mobility allows the tenant more freedom and flexibility.
  • Being a tenant comes with fewer expenses, which means that renters could have more cash in hand than a homeowner. This cash can then be used for making long-term investments in the stock market or real estate.

Cons of Renting a Home:

  • A renting tenant must abide by the rules of the lease agreement. Typically, this means that they cannot change or renovate the property without permission from their landlord.
  • House rents may increase any time, since tenants have no control over annual rental fluctuations. These rental increases are directly driven by economic inflation.
  • There is no assurance of a lease renewal upon its expiration. This widely depends on the will of the landlord.
  • A tenant has no claim on a rented property, so they will never derive any wealth creation or ROI from it. Instead they will be helping their landlord to pay for their own mortgage interests.
  • Rental issues may take a longer time to be resolved if a rental agent is working as the collaborator between the tenant and the landlord.

 If you’re ready to purchase and need help getting a mortgage visit https://askross.ca/second-mortgages-toronto-and-gta/

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