Renting vs. buying in the current housing market
(NC) One of the outcomes of the COVID-19 pandemic has been soaring home prices. Many first-time buyers across Canada are wondering whether now is the right time to invest in a home, or if they should wait.
But it’s important to carefully think through the choice between renting and owning, and to fully understand the costs of taking on a mortgage.
Renting and owning can both have benefits. The right choice depends on your financial situation, priorities and long-term goals.
Owning your home can give you:
1. a feeling of pride that you’ve made an investment,
2. independence from a landlord’s choices about the future of the property, and
3. the ability to make permanent renovations or decorate to suit your own tastes.
In comparison, renting can give you:
1. a feeling of independence,
2. the ability to move easily to pursue opportunities, such as a new job, and
3. freedom from the responsibilities of maintaining a home.
Remember, while financial calculations are essential in any decision to buy a home, many people will find that the emotions and values they place on owning or renting will influence their choices. Find resources to help you understand what each option will cost and decide what’s best for you at canada.ca/money.