Rent or Buy? In the past, it has always been the long-term objective to buy your own property. Parents today will continuously push the idea of buying a home as soon as possible, stating that by renting you are simply wasting your money. While many people will choose to take this path, it has become increasingly common to take the opposite standpoint. Home ownership in Canada is extremely low compared to many other nations, with only 63% of the population choosing to own their home. Modern research has shown that renting a property may actually have a number of benefits, especially in today’s fast-paced economy. These benefits include everything from a more flexible lifestyle to how efficiently a building can be managed with less stress on your part. Here are some of the reasons you may consider when deciding whether or not to rent or buy a property.
1. Housing Prices
House prices in the Canadian market are currently at an all-time high and consequently, home ownership has become less available for many people, particularly first time buyers. More stringent mortgage qualification guidelines have also made it harder than ever to purchase a home. As a result, people are making the decision to rent and using their disposable income in other ways. This is becoming a trend among those under the age of 35, who are frequently choosing to rent and invest the money they save on property taxes and repairs. They may choose to use the money for other types of investments, or even to create memories by traveling the world. With holidays all around the world being more accessible than ever, it is no wonder that people are choosing to rent rather than buy a property!
We have witnessed this first hand our apartments in Prescott and Brockville where there has been lower turnover in the last year and a half because people cannot afford to purchase their own homes so they are renting longer.
One of the main benefits of renting is that you are not ‘stuck’ in a single area or neighbourhood. When renting a property, you will normally be on a 12 month contract, meaning that you have the option to move after one year, should your circumstances change in any way. This flexibility provides those who rent with the opportunity to experience a wide range of different communities, allowing them to ‘test’ a few areas before they decide to settle down. Additionally, it also allows for change when circumstances change (because more often than not, they will!). For example, should you gain a promotion that requires you to move, or you decide to raise a family, you will have the option to move into a neighbourhood that better meets your needs. We know from experience that sometimes tenants plan on staying for the long-term, but when life throws them a curve ball or their priorities or circumstances change, they are glad they rented an apartment as opposed to being tied down to home ownership.
3. Maintenance Costs
One of the main downsides of owning a property is that you are in charge or the maintenance of your home. If your sink becomes blocked, a pipe breaks or your roof is leaking, it is your responsibility to solve. This cannot only be stressful, but can also break into your savings if you are unprepared. On the other hand, when renting a property, maintenance becomes the responsibility of the landlord. This reduces the overall amount of pressure on you and provides you with a significantly cheaper solution should any maintenance become required. When making the decision to rent a property, we always advise that you rent from a landlord with a positive reputation. In the Brockville and Prescott area, there are many great landlords for you to choose from, all of whom take maintenance very seriously. Of course there are those who skimp on maintenance, and you want to avoid renting in those buildings. It is important to do your due diligence. At GK3 Group, we believe in our motto of “class, quality, and comfort.” We take care of all the little things for our tenants so they can live stress free.
To rent or to buy is a big decision and it will be different for each person. If you believe that buying a home is too costly or too much responsibility, it may be best to take a step back and decide at a later time. In the meantime, reputable landlords like GK3 Group are happy to provide quality apartment rentals. Good luck with your decision!