In today’s market, a lot of people are making the comment “I’ll probably rent until prices get a little better” for obvious reasons, but it is important to remind ourselves that each opportunity (renting or buying) has its own advantages depending on your personal and financial situation.
Advantages of renting:
– No need for down payment amounts (5%)
– Flexibility to move as often as you need too. (If you are in a career that requires you to relocate often)
– Want to live downtown, but cannot afford the pricing.
Renting an apartment, condo or house lets you enjoy your lifestyle with no long-term commitment. In addition, you know that rents will remain stable since rent increases are regulated by the Régie du logement here in Quebec.
Advantages of ownership
The Main advantage of ownership is obvious, the payments you make monthly will be in part a savings account for the day you sell. Meaning that when renting, all the money on rent goes to the owner (land lord).
– Owning property is an asset, meaning it will increase in value over time causing you to save money without any effort or constraints.
– Your monthly payments pay off your debt and not the debt of someone else (less of a waste)
– Only real way to really feel at home in your property. Living as an owner means no restrictions on the use of your property.
Owning property vs. renting property are two very different realities. Owning property is responsibility, long term appreciation of assets and a great investment, while renting offers flexibility, little responsibility and no need for lump sum payments at the start of your journey. Deciding on what is the best decision for you truly lies in your personal and financial situation and sometimes, living with the folks a little longer is not the worst idea when wanting to start an investment portfolio!
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