Why Buying A Home in Toronto Might Be a Better Option

The Youth Housing Network 

Why Buying A Home in Toronto Might Be a Better Option 

By: Romona Ghasemi

Introduction 

Are you a youth thinking about their future? Are you wondering if you should buy a house in the future or if you should rent? These questions can be very overwhelming, but you are not alone. There is a large debate on whether buying is better or renting a house, especially in Toronto. Although it may seem like renting is a cheaper and more efficient alternative, in the long run buying can be a better investment. 

Why Do People Often Rent in Toronto?

To rent a home means no maintenance worries. When you live on the property and something breaks, your landlord is one phone call away. For example, if the stove breaks the landlord has to deal with the repairs and the money to fix it comes out of their pockets. 

When you rent a home, there is a set monthly payment, but when you own a home there is extra fees such as property tax and insurance.

When you rent it gives you unlimited flexibility. If you live to constantly move around, renting makes it easy for you, since owning a home is a big commitment.

When paying your rent it makes it seem like you are paying less per month rather than owning a home, but in reality, the money helps the homeowner pay off their mortgage. 

Why Buying a Home is Better

At the moment, Toronto's rental market is pricey, especially if you are looking to purchase a home downtown. With a good down payment, your mortgage might end up costing less than rent. When buying a house, you are building equity. Every time you pay a mortgage your ownership in the home increases. If you also like to personalize your home the way you would like, owning a home gives you that freedom. If you want to renovate the home or paint the walls you do not need anyone’s permission to customize it. Putting your money into buying a house is a type of investment. In the future, if the property value rises, the house value increases too, building your wealth overtime. 

Who Should Consider Renting?

Although buying a home can be the right financial decision. Renting might make more sense if:

1. You do not have enough money saved for a down payment 

2. You are not sure where you will live in the next few years.

3. You are not ready to handle the responsibilities of owning a home

Why Buying is a Good Choice for Young Adults

When buying a home it means investing in yourself. Instead of putting money into rent which goes into someone else’s pocket, you can put it towards your mortgage, helping you build wealth.

Owning a home gives you full control and creativity. 

In the long run, owning a home can save money despite the upfront costs. Monthly mortgage payment might actually end up being less than rent. 

Why Buying Is Worth Considering

In conclusion, renting offers less flexibility and fewer responsibilities, which might be convenient for some. If you are ready to settle down and invest in your future, buying your first home in Toronto is the right move. It is all about setting yourself up for long-term success.