The goal of home ownership is widespread in Canadian society, but it doesn't tell the whole story. While there are many advantages to purchasing your own house, there are also plenty of Canadians who are solid proponents of renting apartments. The truth is that, like most lifestyle choices, there's no clear right or wrong. The decision to buy or rent is predicated on many factors, and both choices can offer their own unique freedoms and headaches.
At Globe Property Management, we often meet potential tenants who are debating the relative merits of renting versus owning. Below, we provide a succinct overview of some of the benefits and drawbacks that come with each decision:
Benefits and Drawbacks of Owning a Home
They say your home is your castle, and for many Canadians, there's just no replacement for investing in a property with their name on the deed—no matter their financial circumstances.
Benefits of Home Ownership
- You can acquire home equity.
- When you make your monthly mortgage payment, you know you're gaining equity in your own investment, little by little.
- It provides a sense of stability.
- For those who've always dreamed of a forever home, becoming a property owner lends a sense of security to the future.
Drawbacks of Home Ownership
- You're responsible for all repairs.
- You have to make a down payment.
- That's a major amount of cash to save up and invest all in one shot.
- You're vulnerable to decreases in property value.
- If the housing market bubble bursts? You're on the hook!
- It requires a large degree of financial leverage.
- There's no sugarcoating it: Owning a home is expensive.
Benefits of Renting
For many Canadians, remaining a tenant of a rental property is their preferred choice. Benefits include:
- You have no maintenance costs or repair bills.
- The property owner assumes all responsibility for maintenance issues and repairs as well as upgrades and improvements.
- You pay no real estate taxes.
- When you rent an apartment, annual property taxes are not your concern, whereas, for homeowners, they can be a substantial financial burden.
- You don't have to make a down payment.
- When you rent an apartment, the only payment you'll have to make will be a security deposit. As long as you don't damage the apartment while living there, you'll get it back when your lease is up.
- You’ll have more flexibility with living locations.
- Renting often affords tenants the flexibility to move into and experience neighbourhoods where home ownership would be prohibitively expensive. In addition, amenities like pools and workout facilities are frequently included with each monthly payment, and there are no obligations when the rental contract ends.
Renting With Globe Property Management
Depending on your lifestyle, preferences, and financial situation, you may be among the many Canadians who ultimately feel that renting an apartment is the right choice for you. If you’re currently seeking apartments for rent in Winnipeg, the dedicated team at Globe Property Management is ready to help you find the perfect fit. Contact us today!