Rent or buy? There's no easy answer. While buying a home in Canada was once considered an essential milestone in the life of the average Canadian, times have changed. These days, inventory is low, and prices are high even though sales have slumped. Add in the higher cost of taking on a mortgage, and homeownership becomes all the more difficult — and challenges the oft-repeated notion that real estate is a solid investment. But renting isn't always better.
Downsides of owning your own home Homeownership isn't all unicorns and rainbows. Here are some of the downsides to homeownership that may sway you toward renting: Renting vs. buying a home: how to decide Before you make the leap from renting to owning, it's wise to dig in and analyze your current financial situation and short-to-medium-term goals. We'll deal with specific financial considerations later, but first, survey your personal situation and readiness for homeownership.The first thing to do is to compare the cost of rent to mortgage payments in your neighbourhood.
Is homeownership a good investment for you? If you have the resources to buy, homeownership is more than likely a wise investment. Every time you make a mortgage payment, you are essentially paying down the principal and taking a step toward owning a piece of property that will appreciate over time. Think of your mortgage payment as an investment or a savings strategy: If you sell your house down the road, you'll get back the money you've paid out and likely turn a profit.