Home Readiness: Buying vs. Renting

At some point in our lives, we are faced with an important question: should I buy or rent my next home? Each option comes with its own pros and cons, but no matter what side of the coin you think you might find yourself on, it’s important to consider all sides of the debate. Here are some important things to consider when determining whether buying or renting your next home is right for you: 

Buying a home:

  • Advantages: Owning a home means that by making your monthly mortgage payment, you build equity, or, you build upon the portion of your home that you truly 'own'. And, the longer you stay in your home, and the more you pay on your mortgage, the more equity you’ll have. Another benefit of home-ownership is that you can also personalize your home to create the living space that's perfect for you. Change the paint colour, rip up the carpet, tear down walls, or renovate the house from top to bottom, all to suit your taste and lifestyle. Renovating your home adds more value. For those considering renovating, discover CUA's Home Equity Line of Credit to use your home's equity in making those necessary updates. 
  • Disadvantages: Let's face it. As a homeowner, the unexpected can happen at any time. Perhaps your hot water tank has kicked the bucket, or you're in need of new windows and doors. The upkeep of your home can be a big responsibility, and a big cost. It's important to have resources and funds set aside to tackle the upkeep of your home when it's needed. Owning a home can also be more costly than renting, so it's important to be aware of all costs associated with buying, including the down payment, closing costs, and property taxes, and on a monthly basis, things like utilities and insurance.

Renting a home:

  • Advantages: Have a problem? Simply call your landlord. When it comes to maintaining your rental unit, whether it's a leaky roof or a malfunctioning electric heater, renters typically have no maintenance costs or repair bills to pay. Renting also offers the flexible benefit of being able to move out on short notice, usually within one to three months. So, if you're someone who does not intend to stay in one place for a long time, renting may be a perfect option for you.
  • Disadvantages: By renting a home, you are essentially paying for someone else's mortgage, meaning you aren't building up your own equity. Renting also means that, aside from furniture, you aren't given much opportunity to personalize your living space the same way you could in owning your home. 

No matter which side of the coin you may fall, it all comes down to what you can afford and what's best for your lifestyle. Check out this monthly budget tracker as you think about your affordability. Or use the CUA mortgage calculator.  Alternatively, CUA offers flexible products and services to help make your decision-making easier. If you have any questions at all about buying vs. renting your next home, we are happy to help and I am confident that we can find a solution that works best for you! Contact a member of the CUA team by phoning 902.492.6500.

Revised Jul. 5, 2021

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