Here’s a major question that most people will ask themselves at least once in their lifetime: “Should I buy or rent a home?” It’s a question that will likely bring up many more questions, and it’s something that shouldn’t be taken lightly because it can involve large sums of cash and is, after all, the place you will be calling home, at least for some amount of time.
When it comes to making decisions about Saskatoon real estate, it’s a great idea to align yourself with an agent who can answer your questions and help you make the best choices for your needs. In the meantime, take a look at the following list of pros and cons for buying and renting a home to get an idea of which option might be right for you.
- Owning a house is an investment and monthly payments accrue as equity as the mortgage decreases.
- You can potentially earn an income if you decide to rent out a section of your home.
- If you are in need of cash, you could borrow from a financial institution against your home.
- You will reap the benefits from whatever upgrades you make to your home. The resale value will increase.
- House upgrades or remodeling is done whenever you want and to your taste. Adding a kitchen garden or a swimming pool are two examples of additions that you can make, if you so choose.
- You can sell whenever you’re ready, and possibly reap financial rewards from the sale.
- Mortgage payments can often be lower than rental payments for the same home.
- A home is yours and yours alone.
- In terms of costs: you will have to make mortgage payments as well as other associated costs that come with home ownership. These include taxes, maintenance, furnishing, and bank interest on the mortgage. Repairs must be handled by you, and are sometimes costly.
- Selling your home may not be as easy as you think, since you may have to put money into maintenance or upgrades, you will need to hire a real estate agent, may need to do some home staging, and more. Additionally, selling usually requires time for the sale to be finalized. That said, this entire process can be simplified with the help of a good Saskatoon real estate agent.
- You may suffer financial losses if you don’t have any equity in your home.
- Interests rates may fluctuate.
- Homes that fail inspection may cost you more money in repairs, etc.
- Closing costs can be high, and it may require you to save considerably more than you were expecting.
- Maintenance costs are borne by the landlord.
- Moving into a rental is faster and easier than moving into a home, as there is less paperwork and no wait for closing.
- There are no closing costs only deposits, which are typically significantly lower than closing costs.
- You don’t have to worry about the additional costs associated with selling when you’re ready to move out and move on.
- Deposits can be recouped.
- Money paid as rent goes to your landlord and doesn’t offer much value to you – you’re essentially paying their mortgage.
- You will have to depend on the landlord to carry out maintenance in a timely manner, which may not always happen.
- When your lease expires, your landlord may increase the rent or you may have to move.
- If you live in a complex of any type, you may have considerably less privacy.
- You may not recoup your deposit if the landlord feels certain rules and regulations were not followed.
- Your home is not your own
There are benefits and downfalls to both buying and renting, but it’s up to you to consider your budget and preferences to decide which option is right for you. In some cases, it may be that the time is just not right to buy, while others may be financially prepared and eager to buy a house of their own.
If you’re still on the fence and need some assistance making this important decision, or you’ve decided you’re ready to buy and would like the help of an experienced and reputable realtor, please don’t hesitate to get in touch with me.