Renting option
- Preferred by many for economic and lifestyle reasons.
- Usually less expensive than ownership although tenants usually have less control over their housing costs than home owners.
Within apartments
- Often includes on-site recreation facilities.
- Provides considerable flexibility if frequent moves are likely.
- Minimal responsibility for property upkeep (an important consideration if you dislike or haven’t the time for maintenance or garden work).
Purchase option
- Opportunity to select or build a home to suit your taste, needs and interest.
- You choose what to do with the house once you own it (subject, of course, to municipal bylaws).
- Generally increases in value so there is a return on your investment.
- While you’re acquiring a substantial capital asset, you are also getting security of tenure, control of your own living environment and pride of ownership.
- More control over cost than tenants.
Other benefits of buying now
- Low interest rates, lowest in decades.
- Special programs available: RRSP Home buyers Plan, allows you to borrow, tax free, up to $20,000 ($40,000 for couples) from your RRSP.
- 5% down payments, with an insured mortgage.
Home ownership pays off in the long run: study
A Toronto forecasting firm “Clayton Research” concluded that the net worth of homeowners will be $50,000 greater than renters after 20 years and $167,000 greater after 30 years, assuming inflation will be 2% per year. It also found that initially home ownership costs more than renting, but pays off in the long run.
