Why You Should Rent

With houses in Vancouver costing an astronomical amount these days it’s hard to imagine ever being a homeowner. Even if you can afford to buy it may just be better to rent right now, here’s why:

• Housing prices are declining. With the housing market deflating you might just be able to buy your dream house at a lower price.

• Renting is a finite expense each month. Every month you know how much your rent is going to be. Owning a house is infinite, there are fixed costs like your mortgage and utilities but the amount you could spend on renovations and furnishings is endless.

• The longer you rent, the longer you have to save. The minimum for a down payment is 5% but putting down a higher down payment will save you a lot of money. A down payment of 20% or higher saves you from having to pay the government’s mandatory mortgage default insurance.

• Not owning a house means you don’t have to pay property tax. Homeowners in Vancouver are required to pay property tax every year. As a renter you are required to pay none.

• Whenever any repairs need to be done in your rental, you don’t have to pay for them. You also don’t have to go through the ordeal of finding a reliable tradesperson to do the repairs.

• Renting allows you to live in trendy neighborhoods that you either wise might not be able not to. Buying a house in a trendy neighborhood might not be in your budget but you most likely will be able to rent in one.     

• Signing a lease for a year gives you the flexibility to move after a year should your job or financial situation change. Owning a home is a commitment that can’t easily be wrapped in a year. Not only would you have to worry about finding a buyer, you would also need to deal with solicitors, real estate agents and hefty fees.

Though most people strive to one day become a homeowner, there are some positive points to renting. So sit back and enjoy renting.

 

Source: The Globe and Mail