Big cities come with their own set of problems and advantages. Call it the pros and cons of living in major cities, but the fact is that both the advantages and disadvantages are part of the experience of living, and most people come to terms with all aspects of living in a big city. One such disadvantage for some people is the associated cost; the fact that you can rent a bigger, better apartment in the suburbs or in another city half an hour or an hour away really tells you just what the situation of real estate is in big cities. Toronto is no different; as one of the major cities in Canada, it also comes with the perceived issue of hiked rents and prices in the big city.
This brings us to the topic of this blog, which will deal with the often-asked question when it comes to living in the city of Toronto: which is more affordable: renting or buying your own place? Be it an apartment, a condominium, a detached or independent house, what is the better option for Toronto? Should people looking to get a good deal buy an apartment or property outright, or should they rent it? Let’s start by understanding which one might be better from a financial standpoint.
Renting or Buying in Toronto: Which One is Better?
Let’s start by looking at this from a different viewpoint; while others may delve straight into why one option might be better than the other, let us introduce a level of objectivity in this and lay out the facts before you to further simplify the decision for you. We will start by looking at the many advantages of renting a home, apartment or property, and then we’ll compare it with the advantages of buying a home outright, and we’ll see which one might be more beneficial.
Renting: The Advantages
Many people seem to think that there are no obvious advantages of renting; all the tenant is doing is just putting money in the pockets of the landlord. But is that really the case? Let’s take a quick look.
- Maintenance issues: One of the major advantages of renting is the fact that the house or apartment remains the property of the landlord, which means that all maintenance needs to be taken care of by the owner. This means that whether it’s new paint, toilet clogging or something much more cost-extensive, you as a tenant are spared from that expense and the landlord is supposed to cover it.
- Easy budgeting: Rent is fixed. It is supposed to increase by 2.5 per cent every year, but for the whole year, you have a fixed amount to pay each month. This makes budgeting much more easy, as predictable payments can help you budget with much more accuracy. Ownership brings with it lots of other costs that may come up unexpectedly and ruin the budget.
- Lower moving costs: Got a dream job that requires relocation? Good luck selling that house quickly or not trying to fork out the hefty commission. Renting gives you the freedom to move out of a neighbourhood as you please, and it is much cheaper to move when you are renting. All you are responsible for is the moving cost; when you own a home, it’s a much different story with taxes, commissions and whatnot.
So far, renting looks like the more viable option, but now, let’s take a look at the advantages of owning a home and how it compares to renting a home in a city like Toronto.
Owning: The Advantages
In the short-term, owning might seem much more disadvantageous. In the other camp, there are people who believe that renting is the financially smart decision to make, as it saves you from the many taxes, fees and commissions even over the longer term, which means more money in your pocket. Is that the case? Let’s take a look at the advantages of owning a home.
- Rent is mortgage: Rent and mortgage payments, if you negotiate shrewdly, can end up totalling the same. This means that rather than make your rent somebody else’s mortgage payments while they keep ownership of the home, you get to own the home, and your rent payments to another person are now your mortgage payments, and when the mortgage ends, you have a whole house to yourself.
- Cost appreciation: The real estate market has its moments too. There are times when the market goes bullish and times when the market is bearish. At times when the market is on the up and up, you stand to reap the reward if you decide to sell or increase rent, not the landlord. However, this does come with a caveat; when prices go down, you will have to stick with the reduced price until the market gets back.
- Owning is cheaper in big cities: As mentioned beforehand, sometimes rent gets the same as mortgage payments, and especially in big cities like Toronto in the more popular places, you might end up paying more in rent than what would equate to the mortgage payments. So there is that obvious benefit.
- Freedom of ownership: With owning the house, you have the option of making the house your own; paint a wall, change the wallpaper, get new home appliances or make a room prettier with new lights or fitments. The list is endless, but the list is also exclusive to those who own the actual house or apartment and don’t rent it.
Conclusion
Both renting and owning come with their own set of advantages. But if you look at it from a time perspective, for example, comparing both options in the longer run or in the shorter run, the results might vary. In a city like Toronto, most of the time, a good long-term investment would be actually owning the property, be it a detached house or an apartment. The short-term might point to renting, since in renting, the expense is rather lower than with owning. But all in all, it depends on which location within Toronto you’re going for and what goals (if any) you have with the property. Just need to live in the city and aren’t looking for anything else? Then, renting is obviously the better option for you.
TBA: The Best Rental Apartments in Toronto!
Toronto Boutique Apartments: the one name you want to hear when it comes to luxury apartments and suites that elevate your lifestyle. In the heart of the beautiful city of Toronto, they have a range of 1-, 2- and 3-bedroom apartments designed around the modern corporate professional to cater to their needs when it comes to living in style. Immaculately designed apartments, with luxurious and well-appointed furniture and décor that fits the upscale lifestyle, grace the walls of each and every luxurious apartment from Toronto Boutique Apartments, making your average stay in the hotel a mundane experience that does nothing for you. But with the luxurious apartments from Toronto Boutique Apartments, you can just sit back, relax and let the ambience of the place fill you with satisfaction and a homely experience that you won’t find anywhere else. At all.
