Paying for rent is tiring and owning your first home is a rite of passage…but is it right for you? Before choosing whether to rent or own a house, you need to be aware of the expenses and restrictions associated with both options.
To help you choose which living situation would work best for you, take a look at our chart below comparing both options.
| Renting | Owning a house |
|---|---|
| •Ability to continue saving for a down payment. | •Build equity. |
| •Not responsible for maintenance costs. | •Responsible for all maintenance and repairs costs. |
| •Low likelihood of being able to customize paint colours, flooring etc. | •Ability to customize home to your style. |
| •Easier to pick up and move with no strings attached. | •Much more difficult to pick up and move. |
| •Landlord could ask you to move out. | •No restrictions on pets (potential city or RM restrictions may apply). |
| •Could have restrictions on pets. | •Potential to be your own landlord and have an income suite. |
| •Potential for noise depending on the type of rental. | •Tax free gains (value of your home goes up, therefore increases the equity). |
| •A pillar for retirement. – once ready, you can sell your home for a decent retirement nest egg. |
Pro Tip: Holding off on buying a home and continuing to rent can help you build up a healthy down payment that will get you out of debt faster!
Rent or Own Comparison
The following chart demonstrates a comparison between renting vs. owning your home.
After 5 years you will have accumulated $65,826.42 equity in your home and your mortgage payments will be $8,278 less than your rental payments over the same time period.
Data used to determine accumulated equity:
