For those that are new to Canada, there are definite pros and cons to renting and owning. And while that list will be different from one Canadian to the next, there is one factor everyone has in common when it comes to renting or owning: finances.
Think about your lifestyle.
Let’s be real, there is nothing like owning your own home. But don’t forget that it does come with extra expenses that can really shake up the lifestyle you’re used to. There are major financial and maintenance commitments that come with owning a home, and that means making sacrifices. Owning is all about commitment and responsibility (aka adulting), while renting allows you much more freedom (aka I do what I want). With renting you’ll have a lot more choice when it comes to location, the kind of accommodation and the amount you want to spend per month.
Owning has its perks.
Owning a house is a big accomplishment and something worth working towards. It’s an investment that will appreciate over time (that’s bank speak for an increase in value) and can be used for stability in retirement. In your own home, you are responsible for everything from repairs to upgrades to taxes, but you also get to embrace your inner Martha Stewart and make it your own with décor and renovations. So while buying a home is always a smart investment (why not pay your own mortgage instead of someone else’s) it does come with a lot of responsibility.
It’s all about timing.
Aspiring to own a house is never wrong, but you need to make sure it’s the right time for you. Are you ready to ditch your lifestyle in exchange for the accomplishment of owning? Whether you choose to rent or buy, be sure to make an educated decision based on your finances, where you’re at in your life and where you see yourself in the next 10 years. A good place to start is setting up a meeting with your financial advisor, even if that advisor goes by the name ‘Dad’.
Let’s crunch some numbers.
The choice between buying a home and renting one is among the biggest financial decisions that many adults make. But the costs of buying are more varied and complicated than for renting, making it hard to tell which is a better deal. To help you answer this question, this rent vs. buy calculator from the New York Times takes the most important costs associated with buying a house in Canada and computes the equivalent monthly rent.
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