Should I rent or buy a home?
Obviously at LondonOntarioRealty.com we have a bias towards buying homes. We will try and give you a balanced overview of the pros and cons of both options. Every situation is unique. If you have moved to a new town for a short work contract then obviously buying a home there doesn’t make sense. If you have started out in your professional career you may want to wait until you are on a stronger financial footing to purchase. Below you will find the pros vs cons on whether you should rent or own.
So maybe the questions should be “Under what circumstances will I be ready to buy instead of renting?”
Before you even consider if you should rent or own a home you should consult with a mortgage broker or bank. You can find some trusted mortgage brokers on our preferred vendors page.
Here are some pros and cons for both renting and buying.
Pros Of Home Buying
- Equity building and potential growth in personal wealth
- No restrictions from a landlord for decorating, enhancements etc
- Enhanced credit rating from continual mortgage payments
- Future options of refinance would allow access to credit
- Long term stability and security
Cons of Home Buying
- Huge financial responsibility
- Additional costs including maintenance and taxes
- Less mobility. Would need to sell before moving
Pros of Renting
- More flexibility to move
- Able to live in areas you couldn’t afford to buy
- Only need renters insurance
Cons of Renting
- Bound to the rules the landlord sets out
- Subject to lease termination
- No wealth connection
- Lack of security
If you are thinking of buying a home use our property search function here: Buying a home
