by Ashley Turner
on Monday, October 30th, 2017 at 11:49am.
When it comes to buying or renting a home, there aren’t really any definitive answers. What it really comes down to is you and your circumstances. Are you alone? Are you a single parent? Do you have a family? Are you retired? Some even more integral questions you need to ask yourself before you decide are listed below:
Are you still going to be in the same place in 5 years?
How much money do you have for a down payment?
Have you considered the hidden costs of owning a property?
What does the housing market look like?
Are there any good rentals in your area?
Although choosing between renting or buying shouldn’t be a terrifying endeavor, it can be overwhelming. Keep on reading to see some distinct advantages and disadvantages of buying or renting in Saskatoon, Saskatchewan.
Advantages and Disadvantages of Renting
One of the biggest advantages of renting a home is the fact that there are no hidden costs involved. Land owners have that responsibility instead, so if anything ever goes wrong – such as a plumbing or electrical problem – you would be in the clear when it came to paying the repair bills.
Another advantage is the fact that you don’t have to pay taxes and fees. Some home owners pay thousands of dollars in taxes ever year. More than that, there’s no risk of losing money if the housing market crashes.
The downsides of renting, however, are also clear. Even though there are no hidden costs to renters, if the housing market goes up, they won’t be able to reap the benefits of that monetary value.
Then there's the issue of stability. Your landlord could decide to sell the home, or decide they want to increase your rent. Sure, they need to give you a few months' notice, but you never really know what's going to to happen three months from now.
Another downside to renting is the fact that, sometimes, there are no places to rent that suit your needs. Say you have a large family of a husband and three children. A 1 bedroom or 2 bedroom condo would be much too small. Although Saskatoon is a large city, there is always the possibility that you won’t be able to find the renting options that you want when you need it most.
Advantages and Disadvantages of Buying A Home
When it comes to buying your own home, you have control over what gets fixed and when. It’s no secret that when you rent at some places, you can have leaky sinks or a broken washing machine for days— or longer. It’s up to you to call a company or a contractor to come fix the problem right away. You also have a choice in what company or contractor that you use.
Owning a home also comes with the benefit of building your own equity. If you buy at a good time when prices are stable or low, there’s a good chance that you’ll start reaping the financial benefits when housing prices start creeping up. In the past, house prices have risen as high as 6% per year.
On the other side of the coin when it comes to maintenance, you have to pay for the costs out of your own pocket. A great thing to do is to set aside some money from every paycheck so that you aren’t scrambling when something happens in your home.
Property taxes are no joke. Depending on location and the size of your home, or if something happens such as an accident or natural disaster, they can go up. This means that the value of your home goes down, and you risk not getting as much money out of your home as you put in.
Another benefit is that you can subsidize some (or most) of your mortgage by renting out rooms or a suite in your house. Although this comes with some additonal costs each year, it can more than pay for itself and subsidize your monthly mortgage payment, reducing your overall monthly costs of ownership.
To make a long story short, the choice to rent or buy in Saskatoon can largely depend on much money you have and the lifestyle you lead, however, if you're sick of renting and the thought of becoming an owner has crossed your mind a time or two, give us a call. We'd be happy to meet with you to discuss your options, or help you plan a long-term goal to achieve your dreams. Curious to see what could be in your price range? Use our mortgage calculator to find out now!