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.
|Owning a house
|•Ability to continue saving for a down payment.
|•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: