Choosing whether to rent or buy a home is a significant decision that affects both your lifestyle and your financial health. In recent years, vacancy rates and market rents in Calgary have been reasonable. Consider the advantages and disadvantages of each to determine whether renting or buying is the best option for you.
Renting
When you rent, you have the freedom to move whenever your contract expires. However, if your landlord decides to sell the property or convert your apartment complex into condos, you may be forced to relocate quickly. They could simply raise the rent to an amount that you cannot afford.
Owning
Intangible benefits such as a sense of stability, belonging to a community, and pride of ownership come with homeownership. It is not, however, suitable for restless or wandering individuals. If the home market is down, you might not be able to sell when you desire. Even if it’s up, selling incurs considerable transaction expenses. When you own a home, it is much more expensive to change your mind about where you want to live.
Conclusion
It’s not only about money when it comes to deciding which choice is best for you. It’s also about your comfort and your life goals. The truth is that there is no such thing as a correct answer for anyone. Many of these decisions are influenced by personal preferences, risk tolerance, and unique situations (being able to purchase, stability, plans to move, etc). Whether you’re a buyer debating whether to rent vs. buy, or a seller debating whether to sell vs. hold a property, we feel it’s critical to have open and honest dialogues that allow you to understand all of the options, potential outcomes, risks and exposures, and potential profits or benefits.