It’s your choice.
When considering cost, don’t forget the cost of commuting to work. Often rental properties are more centrally located and closer to jobs, amenities, and transit than homes in suburban communities. And if you want to be right downtown in a major metropolitan area, renting is almost always more affordable than owning a condo or house.
Apartment suites are typically larger than comparable suite types in new condominium properties.
Compared to owning a home, rental living is easy. Here’s why:
- Property staff to call 24-7 if anything goes wrong;
- Full-time maintenance staff to handle maintenance and repairs;
- No snow-shovelling or lawn maintenance;
- No worries when you go on vacation;
- A single monthly rent cheque pays for all of the above, compared to many separate bills when you own a house and a separate condo fee when you own a condo.
Renting leaves you more disposable income for things like travel, recreation, or buying a vacation home, because of the:
- Lower, controlled cost: The cost of renting is a bargain compared to total home ownership costs that include taxes, utilities, insurance, and maintenance. What’s more, your rental costs are fixed for the term of your lease. By contrast, condo fees are more unpredictable, and most home ownership costs have been rising much more quickly than the rate of inflation.
- Five-year advantage: People say paying rent is like throwing money away. But if you plan to move in the next five years, you could say the same about a mortgage. In the first five years of ownership, most of your mortgage payments are applied to interest, with minimal paid to the principal. So you won’t get this money back when you sell, and you’ll have all the hassles and costs of putting your house on the market.
- Possible deductible: In some situations, your rent may be deductible. Home ownership costs are not.
When you rent, you can pack up and leave at the end of your lease, without having to find a buyer and wait for the sale to close.