Toronto is a city of often sky-high real estate prices and limited housing options, particularly for those just arriving in the city or foreign citizens trying to put down their roots. This begs the question: is it better to buy or rent real estate in Toronto? The answer depends on who you ask, as well as various personal financial considerations that you’ll have to resolve in order to establish if it’s better to rent or buy under your current financial situation.
While buying a home provides the obvious benefit of giving you shelter and a place to live, there are a few issues that can arise after negotiating a mortgage, which homeowners need to know. For one, simply buying a home does not guarantee the creation of wealth, and many homes in fact decrease in value as time goes on. As well, while mortgage costs are clear and transparent for homeowners, there are often unexpected issues that can arise with homeownership, such as roof leaks and burst pipes.
Although this isn’t an issue for renters, when you hold a mortgage on a home, you’ll be financially and personally responsible for its upkeep and maintenance. Overall, while there are some curveballs associated with owning a home, the experience of paying a mortgage and owning a home is an integral part of life and is a great way to begin making long-term financial obligations.
Renters: The Pros and Cons of Not Owning a Home
While many experts hold the opinion that owning a home is the best way to generate wealth, this does not mean that renters can’t also create wealth and experience benefits through renting. For instance, renters don’t need to worry about footing the bill in the event of unexpected home repair costs, with accidental damage often being fully covered by a landlord. Moreover, renters often have less financial flexibility than those who can purchase a home.
Though reduced financial flexibility can be a drawback for many looking to purchase and own real estate, it can also be a benefit for renters because it allows them to relocate as they please without going through the often lengthy process of selling a home. Experts also state that renters are often able to save and invest their money more wisely than those who need to manage a mortgage on top of their own financial obligations.
However, renters have many drawbacks. For example, renters are at constant risk of losing housing through eviction, accidents, or other unforeseen events, and often will not have financial or personal recourse to help them find housing.
Additionally, renters often have to follow specific and sometimes stringent rules set forth by the landlord and may face eviction if they do not follow them. Renters also live communally with many other tenants in a small location, which can be off-putting or stressful for some depending on their temperament.
Housing in Toronto: The Final Verdict
For many, housing in Toronto may not be a possibility due to high mortgage rates, costs, or relative fees in general. While this can be discouraging to some, those who are willing to do a deep dive into real estate offers in their area can often find low-cost, lucrative apartments for rent.
If you’re still struggling to find a home in the Toronto area, or if you’re simply looking to consult real estate mortgage experts about your potential future home, you can visit Northwood Mortgage™. You can call us at 888-495-4825 or contact us online.