Almost every child dreams about growing up, having a successful job, buying a great house and having an amazing family. Many of us dreamed of having our own home, sadly that dream may not be as achievable as it once was. Even if you want your own house, there are different choices achievable such as renting. Looking at the long term, owning is always going to make more financial sense than renting a property. Whether buying your home or renting, they have their own its plus points as well as downsides.
Renting a Home
This is the uncomplicated way. It is quite easy to rent once you have seen the house you like, just a matter of signing contracts with the landlord. You can move in and the place is now your home for a period of time. A security deposit is usually payable, but after that you pay the rent decided upon. Most tenancies stipulate the landlord is liable for repairs, so you don’t even have to concern yourself about them. You do not need to pay for improvements, the landlord deals with these. You can only lodge there as long as agreed in your tenancy contract and if it is not renewed you will have to move out, so that’s a big downside. Apart from the notice you both have to give to leave the space, you don’t have a choice about it. Individuals do get attached to their space, so this could be quite hard, especially if you don’t want to leave. This may attract to some individuals who enjoy moving around. You are also not tied down once your contract has ended, you are under no obligation to sign another and stay there. If you want to make some home improvements, often you have to get permission, if this is not granted then you are stuck.
Owning a Property
The first thing you need to remember, is investing in a property can be very hard to start off with. The majority of people will have had to take out a loan which takes years to pay off. Most homes are not decorated to your exact requirements, therefore you will have the extra cost of redecorating. Insurance, refurbishment bills, repair bills and mortgage related fees are all items you are going to need to budget for. Nevertheless at the end of the day you are the title owner. The house is your own and if you want to improve it or change it, you just do. You decide yourself, there is no need to ask other people (but of course, in some specific cases, neighbours have to be notified). A word of caution though, what seems like a minor repair or redecorating task can turn out to be rather expensive. Unluckily if you want to move it is going to be very problematic when you compare how easy it is with rented lodgings. A big drawback is you are going to need to sell the property or rent it if you decide you want to move elsewhere. If the housing market is poor then you could be waiting a while before it sells or even before it’s financially suitable to list it. However, as somebody, who specializes in one of the most beautiful zones in Toronto – Bridle Path – I believe with home ownership comes an exclusive taste!
If you do not wish to settle down for years and plan to move away in the near future, property renting is better than buying, especially if the rent is not very much. The economical outlay of buying a home takes at best a couple of years to start paying off. In the beginning, it seems like you only have to pay with no perks.
