Is buying a house better than renting? Choosing whether to buy is a big decision for many people growing up in Canada, where they’re often told that they should buy their first house as soon as they financially can. Renting works out fine for many people, though, so why is this advice so prolific? There are many good reasons people give out this advice and why you might want to follow it as well.
Freedom to Make Changes
One of the biggest differences between renting and owning a place is that you can make changes to the space you’re living in. When you’re renting, you have to abide by your landlord’s rules, and that generally means not making any permanent changes to your home. When you own it, you have the freedom to do what you want. Paint the walls in your favourite colours, completely change around the appliances, or even add new rooms. You have free reign over what happens to your home.
For many, the biggest benefit of owning versus renting is the stability that comes with having purchased a home. When you’re renting, you once again have to deal with your landlord. They can raise the rent on you, enforce new rules over time, and even sell the place out from under you. Not only that, but many people who are renting have to deal with neighbours on the other side of the wall, or even above their heads. You don’t need to worry about any of this when you own your home.
Homes are an investment and a good one at that. Houses generally appreciate over time, meaning that they go up in value after you’ve purchased them. While you’re living in your home, it will be increasing in value, which will be building up the amount of value you own in assets. If you ever decide to sell, you’ll be gaining more money than you initially put into your home. This allows many homeowners to upgrade and get better homes over time, which they might not have been able to afford otherwise.
Potential for Passive Income Owning a home opens you up to the possibility of earning passive income, on top of the normal wealth you build over time. If there are times of the year that you aren’t living in your home, such as if you’re going on vacation, you can open up your home to short-term rentals. This is a fantastic way to get in some extra money. If you have extra space in your home you don’t normally use (for example, a finished basement), you can also rent that part of your home out long-term while you’re living there. This is also a fantastic option if you own more than one property, such as a vacation home elsewhere.
Low Future Living Expense
One of the biggest reasons many people want to own a home is for the chance to significantly reduce their living expenses in the future. In the short term, a mortgage is generally more expensive than rent. However, that more than makes up for itself when you pay off that mortgage. Once it’s paid off, your monthly expenses greatly reduce, especially compared to renting. If you’re renting your whole life, this is something that will never happen. When it comes to retirement, owning a home is clearly the superior option.
If you’re considering buying a house, get in touch with a professional real estate agent. They’ll be able to help with your search and advise you on which homes would make good investments.