When you are looking to move from your current property to somewhere new there is a lot to think about. Particularly about whether you are going to rent or buy your property. Both have their benefits but knowing which is the right one for you can be tricky. Not only will this decision affect your financial health and personal goals. Regardless of your decision, it will require a regular income and effort to maintain. Owning and renting present two very different options and one is not necessarily better than the other but here are some considerations for you to think about.
One of the most common misunderstandings about renting is that you are just throwing money away. This can be especially true if you are looking for top short-term rentals in Toronto. However, this is not the case. You need a place to live and thrive. Sadly, unless you are staying with family, this will likely cost money. Whilst you are not building equity when you rent, you are avoiding some of the costs and responsibilities of owning a place.
When you are renting a property, you pay a fixed price every month. You can plan your outgoings and incomings so that you do not overspend. Even better is when something goes wrong, it is not your responsibility to pay for it. You can contact your landlord for them to fix it and to pay for it. You are unlikely to face any huge, unexpected costs when things inevitably go wrong. This is one of the most important things for renting.
Finally, the biggest benefit of renting is that you are not tied down to a long-term contract. If you are working in an industry that needs, you to travel a lot or that you spend a lot of time away then renting is a much better option for you than purchasing. As well as this, if you plan on doing any traveling, you are not lumbered with a purchased property.
Homeowning brings with it a host of benefits and issues. You own your own so that you can do with the property whatever you like. You are not constrained by your landlord and their rules. You also have the benefit of being on the property ladder and having a real asset to your name. Property tends to only grow in price and so owning one will help you grow your financial portfolio.
Though it must be said that the cost of homeownership is usually more expensive than renting though it may not look like it upfront. Your monthly cost for the property may be lower but you will likely spend more money on decoration and maintenance. Don’t forget that it is your responsibility to fix any issues that you have.
Renting or Buying?
There is no definite answer to this question. They both come with their own benefits. It depends on the lifestyle that you lead and how it reacts to owning a property. Your lifestyle may only suit renting and so that may be the better option. Neither of them is a particularly cheap option but both are necessary.