When we are kids we all have dreams, those dreams could include the type of occupation you want, a new property or how big your family is going to be. If you dreamt about living in your own space, has that dream lived up to its expectations? Living in your own property does not always mean owning it, it could also be rented. Looking at the long term, owning is always going to make more financial sense than paying rent. But don’t ignore renting, renting a property can have its plus points over buying.
House Renting
Landlord and tenant is one of the more easier ways of moving into your own property. It is quite easy to rent once you have found the home you like, just a matter of signing contracts with the landlord. The agreement will stipulate how long the place is yours for, but apart from that you can move in straight away. Of course you are going to have to hand over the rent each month and any security deposit straight away. If an object needs to be repaired, it is quite often the landlord who takes care of it (this, however, depends on the agreement you sign). You do not pay for improvements, the landlord deals with these. There is a limitation though, this home you have made, is not your own and you will have to move out at some point. If your agreement says one months notice and the landlord gives you that notice, then you will have no choice but to leave. Many people feel some kind of a bond to the house, get used to it and are sorry to leave. Of course, some individuals like to move often and enjoy the fact they can vacate at any time. You have no house to sell, no worries about making the house nice for viewers or the fees associated with selling. A big downside is if you want to make some considerable changes in the place, you have to ask for permission off the owner.
Owning a House
In the beginning, it can be very hard when you buy a home. You would need to find a reputable loan organization for a mortgage and after it’s accepted it will take years before you are clear of debt. Once you have bought the house it doesn’t stop there, what about decorating it to your own personal style? Insurance, improvement expenses, repair bills and mortgage related fees are all something you are going to need to budget for. But the home is yours, your own and thus a brilliant accomplishment. The property is your own and if you want to upgrade it or change things, you just do. You can do want you want to the building, within reason, you don’t have to get permission to change it. Work you do may cost more than you originally planned on so beware of starting jobs before you know exactly how much it will cost. Moving house is not going to be easy compared to moving from rented accommodation. A big disadvantage is you are going to need to sell the property or rent it if you decide you want to move somewhere else. If the property market is down then you could be waiting a while before it sells or even before it’s financially suitable to list it. However, as a realtor, who specializes in one of the most stunning areas in GTA – Bridle Path neighbourhood – I believe with property ownership begins a special taste!
If you do not feel like you want to settle down for years and plan to move away in the near future, renting is better than buying, especially if the rent is not very high. It will take a couple of years for a house purchase to pay off. In the beginning, it feels like you only have to pay with no advantages.
