February 8, 2022
Purchasing a home for the first time is one of the very daunting decisions first-time homebuyers will ever have to make.
But here’s the good news — No matter if you’re an immigrant or a newcomer to the community, professional home builders know the number of risks you are about to make. Read more so you can finally decide whether it is better to rent or buy a house.
Renting
According to the Canadian Rental Housing Index, there are a little over 32,000 rental households in Saskatoon, Saskatchewan.
Although the number of owned households exceeds this number, renting is somehow popular nowadays, especially for couples without kids. There are quite a few pros about renting a place, but there are also lots of cons that go with it.
Here’s what’s waiting for you at the end of the road should you choose to take one path over the other.
Pros of Renting
Flexibility
One of the most important aspects of renting a place is that it allows tenants to have a certain amount of flexibility by dwelling in an address temporarily, so they don’t mind deciding to buy a house. Some people don’t like the idea of being tied down to one place permanently.
Thus, Renting is a good option if you’re one of those people.
More so, Renting gives you lots of mobility, because of this, if you’re not satisfied with your lease over time or you found a new job that requires you to move to another city, you can easily pack up and move somewhere else.
Maintenance Not Included
You might find that you’ll have very low to absolutely no costs related to the maintenance with a rental. This saves first-time homebuyers extra money which will definitely on other future expenditures.
Furthermore, when your rental property needs any type of repair, you don’t have to spend anything. The reason is, you can simply call your landlord and let them do the repairs for you. After all, that’s their responsibility.
It’s still vital that you read the lease thoroughly to make sure that maintenance costs will not be your responsibility. It is best to also make sure that the lease doesn’t have an added clause allowing the landlord to raise the rent to cover their expenses.
Fixed Monthly Expenses
Another advantage is that you’ll know exactly how much you’ll be spending on housing costs at the end of the month. Because you signed a rental lease, the monthly rent will remain the same for the duration of your lease. And unless you decide to extend your lease, the owner can choose to keep it the same or increase it.
Having said this, Renting is somehow more suitable for younger adults than it is for adults in their prime who are already looking forward to living a quiet and relaxed life.
Cons of Renting
Rental increase
Due to inflation, rent prices need to get adjusted as the years go by, so the landlord could raise the rental rates to avoid losing money. As a renter, you can just take it or leave it!
No Customizations Allowed
You can agree with the fact that the most annoying thing about living in a rental property is that: You cannot remodel, drill or hammer to hang decorations for your pleasure.
Keep in mind that you’re only renting someone else’s property. However, in case your landlord does allow you to make upgrades to the rental property, remember that the money you will be spending to improve someone else’s house is YOURS! When you move out, the improvement stays, but you won’t get your money back.
Pets are not allowed
Some homeowners who rent their properties have a strict ‘no pets’ policy. This means you won’t be able to bring your pet with you to the rental property you’re moving into. If you have a pet, you’ll most likely have a hard time finding a place to rent.
These all provide pictures as to how pleasant or unpleasant renting is so let’s get into the realities of Buying a Home.
Buying A Home
Buying a home appears more expensive than renting a place. According to the Canadian Rental Housing Index’s data: there are over 65,000 owner households in Saskatoon, Saskatchewan. Compared to renting, buying a house is quite popular in the region despite its cost.
So, if you’re a prospective first-time homeowner struggling with choosing between rent versus own… this article has gathered some pros and cons of buying a house that can help convince you to become a homeowner!
Pros of Buying
Homeownership
As a homeowner, you don’t have to be constantly worried about having to look for a new place in case your landlord suddenly decides to evict you. Yes, getting evicted from a rental is a real possibility especially during the pandemic.
Once you buy a house, it’s your asset, your property, no one can kick you out from your property. If you are a family with children, houses often come with a spacious yard and a garage.
Freedom To Customize
When you buy a house, you can make any upgrades that you want. If you want to make upgrades, you’ll be spending your money on something that belongs to you.
Buying a house also means that you can opt to purchase a custom-built home that satisfies all of your expectations and needs.
From here, we introduce you to BelleMaison Development, one of Saskatoon’s up-and-coming custom home builders around.
With purchasing your own home, you don’t have to live according to a lot of rules established by the building landlord. Chances are, if you’re renting an apartment, you would also have to get along with other tenants.
But when you have your own house, you don’t have to answer to anyone because you’re finally free from all of that.
Here’s more!
Tax benefits
When you’re a homeowner in Canada, there are several tax breaks that you can benefit from, which is very appealing when you file your taxes every year and want to get some money back.
First-time homeowners can benefit from the First-Time Home Buyer Incentive. It helps Canadians in buying their first house, whether it is a real-estate house or a custom-built house.
According to the Government of Canada, this program “offers 5 or 10% of the home’s purchase price to put toward a down payment”. There are a lot of home buying programs sponsored by the Canadian government that are worth checking out.
You can learn more about those programs here or speak with professional mortgage consultants like Heidi Kinar. Book your consultation here.
Financial gains
Buying a house could be costly at first, you’d have to think about the mortgage, insurance, taxes, utilities, maintenance, among others…
However, there is something that you rarely hear when you can’t decide whether to rent or buy, the fact that you can get all of that money back if you choose to sell your house someday.
It’s a possibility because Canada is a first-world country whose economy benefits from the massive influx of immigrants. This contributes to Canada’s steady real estate growth.
Cons of Buying
Financial Responsibility
Yes, it’s true that as a homeowner you’d have to pay your own taxes, schedule and pay for your own maintenance, but at least all those extra costs can be reduced thanks to the several tax benefits provided by the Government of Canada.
On the other hand, when money gets a little tight, don’t forget that you can always rent your home if you ever need to spend some time away! Put it up on Airbnb, and you’ll see.
Which one should you choose? Rent or Own?
If you are ready, you can see that purchasing your very own home is the better option.
Having pointed out all the pros and cons, it’s no wonder buying a custom-built house provides more privacy, comfort, freedom, tax benefits, and many more. Given that Canada’s economy has seen steady growth over the years and real estate is following the growth very closely, buying a custom-built house by professional home builders is the better choice.
Now that you’re looking forward to purchasing your own lot, you can get in contact with BelleMaison by filling out the form.
Check us out whenever you’re in Saskatoon, and book a free consultation and visit our Saskatoon office at the following address: 207 Thakur Street, Saskatoon, Saskatchewan, Canada.
Author Trevor Percy
