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: