Not all of us afford a house. Everyone wishes to. After years of savings, a few lucky ones can accumulate funds to be eligible to buy an apartment or a real estate property.
But is it worthwhile?
The answer lies in advantages, some calculations, and your perception.
What Are the Advantages of Owning a House?
For some, “my home” is a dream. Someone rightly expressed this as Sophia Ecclestone, who lives in a rented accommodation in the Greater Toronto Area. “ When you are living in your house, you are secure. You usually think of raising a family and life in your style without worrying about eviction.” The benefits are not limited to getting a sense of emotional security and satisfaction. There are several other advantages of owning a house as well, which are:
1. Better Control and Freedom
If you are the owner, you can control things. You can shift a window or close a vent. No one will ever question you. You do not have to answer any poky property owner who keeps probing you. Further, while living in a rented place, you must depend upon your property owner for even the basic amenities, like water and electricity. The property owners cannot maintain their properties, which is a pain for most tenants.
2. No Eviction
Undoubtedly, your property owner is the owner. Even if you live on the property for ten years or 20, a property owner can serve you an eviction notice and ask you to vacate the property. It becomes stressful, and you are usually unsettled. You know you will be homeless in the next month will cause you to lose your peace of mind.
Further, finding a new house could be burdensome, as you will require compromising your work by participating in different shows.
3. You Will Build Equity
We often consider real estate to be an investment for ages. On buying property, you get to build equity, as you now own an asset. As the housing market grows, the asset value or investment also increases.
Upon analyzing the housing sector of the different cities of Ontario, we came to know that the housing prices of:
Hamilton saw a 21% annual increase
Brampton saw a 23% annual increase
Mississauga saw a 14% annual increase
Ottawa saw a 10% annual increase
Thus, it is clear from the statistics mentioned above that housing prices increase year by year.
Sometimes, the price rises have been so steep that they square off the outstanding mortgage loan and leave you with enough money to buy a new house and use the balance sales proceeds.
Thus, buying a property gives you a chance to enjoy the profit-making opportunities offered by a booming market.
What Are the Advantages of Renting?
“Renting is simple. You decide on a house based on your annual income, a few negotiations, and paperwork, and you instantly start living. There are no hassles of running pillars to post to secure a mortgage loan.,” said Roger Smith, a resident of the Greater Toronto Area who recently shifted to a rented place.
Well, renting is the first choice for many. It happens because of the following advantages:
1. No Major Upfront Costs
If you wish to own a house, arrange for 20% of the purchase price. On renting, you will pay a security deposit, usually equal to one month’s rent or at most equal to rent for three months.
Hence, renting is comfortable in your pockets as you are not required to accumulate a large pool of money to be paid upfront.
You can prefer to live in Brampton in 2022 and move to Clarington in 2023. In 2024, you might wish to live in Hamilton. When you live on rent, you are a free person and can live anywhere you like.
Further, it is a fact that in some areas, you will find a higher-priced property. You often get an economical property having affordable rental payments. You are in a better position as compared to homebuyers.
3. Zero Maintenance and Tax Liabilities
Your property owner must bear most real estate taxes, such as property tax, and regularly maintain the property. It helps you save several hundred dollars yearly, and you will comply with the law.
What Should I Do? – Buy or Rent
There is no direct answer to this question, as it entirely depends upon your needs and requirements. We have listed a few factors that can help you in making this tough decision:
If your rent is more than the expected monthly mortgage payments, start searching for a house to buy.
On the other side, if your monthly mortgage payments are higher than your area’s general rent value, you can sell your house, pay off the mortgage balance, and rent a place.
If you have a transferable job or are in a profession where you must travel a lot, you can explore the renting option.
If you are a fan of stability and emotional security and want to enjoy a sense of ownership, you can go to buy a house.