A lot of people wish they could own a home and settle down in it. Many people have achieved that dream, especially people from older generations. In today’s reality, owning a home isn’t so easy though.
In competitive real estate markets like Toronto or New York City the cost to purchase a home is ridiculously high. No one on a minimum wage salary has a chance of owning a home in a big city.
If you are searching to buy a home in a city like Toronto or the Greater Toronto Area, and don’t want to rent, try InstaOffer since it saves you from having to pay huge Realtor fees.
Even if you can afford a home on a low salary you will be struggling to get by due to the down payment, monthly mortgage payments, property taxes, and repair costs.
Here are some reasons you should rent over buying a home:
Not having to pay a mortgage off is a beautiful thing. Now of course you will still have to pay a monthly fee for renting, but typically it won’t be as bad as a mortgage. Mortgages take years and years to pay off. Meanwhile, you get to stop paying rent whenever you want if you decide to move somewhere else. It can be tough to get a good mortgage rate and you’ll need to work with a mortgage broker to obtain one.
No down payment
The benefit of renting means you don’t have to make a down payment. Sometimes renters ask for first and last month’s rent, but that’s nothing compared to a down payment on a home. You’ll likely have to put down tens of thousands on your home if you want a decent mortgage rate.
The lower your down payment, the worse you negotiated mortgage rate will be.
Down payments can be financially difficult to make because it takes a lot of saving up and making sacrifices before you can afford it.
Deciding to rent means you only have to pay month-to-month. No pressure on draining your savings account moving into a new place.
No property taxes
What is disadvantageous about buying a home is that on top of paying a mortgage you’re also paying property taxes. The higher the property value of your house, the more you need to pay each month.
Don’t you already pay enough taxes to the government?
No maintenance costs or repairs
When renting, your landlord is responsible for all repairs and maintenance in the building. If your fridge stops working or the shower breaks on you, the landlord will need to cover the cost.
You’ll never to to deal with unexpected repair costs in your home from things that could’ve been left over from the last tenant.
When owning a home you may inherit some plumbing issues from the past owner that you won’t discover until it eats into your savings years later.
Never stuck in one place
Renting is awesome because you get to move any time you want to. You aren’t grounded to one city, and if an exciting job opportunity comes up in another part of the country you can easily find a new place to rent.
You shouldn’t feel trapped in life, you should be able to move freely around the world depending on the opportunities presented to you.
Renting is the best way to live for people without a lot of money. Don’t worry about owning a home, just live comfortably.