Renting vs Buying a Home: Weighing Your Options
Renting vs. Buying a Home: Which Would be Better For You?
Buying your first home can be intimidating. When you’re contemplating renting vs. buying a home, there are a lot of factors to consider.
While renting might be a cheaper option up front, you need to consider the other factors that go into the debate. When you’re considering where to put your money, it’s important to take the time to weigh your options and find the best solution.
And sometimes it can be hard to figure out what you need to decide.
That’s where we come in.
At Duliban Insurance Brokers, we provide coverages for many different homeowners, at all stages of their lives. We see a lot of first time home buyers who need help learning the ropes, and we’re more than happy to assist you with everything you need.
And if you’re just not ready to buy, renter’s insurance is also an important option to consider.
Here’s what you need to know about renting vs. buying a home, and why buying a home is the better option as long as you’re ready.
Buying a Home Means More Stability
When it comes to buying vs. renting a home, one of the biggest factors that might sway you is the stability and freedom you have when buying a home.
If you rent, you have the freedom to move within 60 days’ notice. But this freedom isn’t always worth it when you’re at the jurisdiction of your landlord. Your freedom is essentially limited by the conditions of your lease.
So if you want to get a dog, but your lease says you can’t have pets, you will not be able to own a dog. Some leases restrict you from hanging things on your walls or painting them.
If your landlord decides to sell the house, you’ll be forced to pack up and move. Additionally, your rent could increase. Under Ontario law, landlords are allowed to increase rent by a certain allocated percentage per year, based on the cost of living for that year.
Buying a home provides you with the comfort of knowing that you’re not at risk of being forced to move or pay increased rent.
You will also have the freedom to be able to make executive decisions on renovations and home improvements. If you want to add something, like a deck or a pool, you can.
You’ll also have the comfort of knowing that this is your place for the unforeseeable future, and you can build a life with it.
A Home is an Investment for the Future
When you consider renting vs. buying a home, you also need to consider the investment you’re making on both ends.
Renting a home or apartment is a big financial investment, but it doesn’t offer the same benefits of owning a home. You pay monthly rent, but it goes to your landlord and their property.
You’re not investing that money to something that’s going to benefit you in the long run, and it will be harder to save money for the future.
When you buy a home, your money is going back into the value of your property. You build good credit and you contribute to the future resale value of the home.
So every time you encounter an unexpected cost, like a leaking roof or a flooded basement, consider it in terms of value. These repairs will increase the value of your property because you’re replacing these for the better.
You can own as many pets as you like (within local laws and bylaws), put in a pool, or expand the patio whenever you want. Just make sure you talk to your insurance broker before you make any big changes!
So When Should I Buy a Home?
You should never buy a home before you’re ready. And there are a few things you should know and do before you make the leap.
When you’re ready to buy a home, you should have a solid plan for your future for at least the next 5 years. Do you know where you’re going with your career?
For example, if you live in Haldimand, but you commute to Niagara for work, are you still going to want to be buying a home in Haldimand, or will you consider moving? You’ll be living in this home for the next 5 years at least, so you need to be ready to make that commute every day.
Once you’re mentally ready, you need to also have the following things to buy a home in Ontario:
- Approval for a mortgage.
- A down payment.
- Money set aside for closing costs- taxes, lawyer or real estate agent fees, renting a van or moving company, and home inspection fees.
When you are ready to purchase your first home, make sure you read our first time home buyer guide. It’s important to know everything you can and be ready to make this new transition in your life.
Then, make sure you talk to your local insurance broker to get them to compare home insurance quotes. You’ll want to protect your most valuable investment as soon as possible to avoid any emergencies!
Whether You Rent or Buy, Trust Your Hometown Insurance Broker For Reliable Insurance
At Duliban, our team of trusted hometown insurance brokers are ready to help you with everything you need for your first time home insurance or renter’s insurance. You can trust us to get you through this process, and to put you first.
We know how intimidating it can be when you buy your first home. And we’re here to help you. Our hometown brokers are friendly, reliable, and we treat all of our customers just like we do our own family.
When you hire a local insurance broker, you’re hiring someone who represents you. Not your insurance company. We’ll compare home insurance quotes for you to find you the best premium and coverage at the most affordable price.
Get your free home insurance quote now!