As adults, one of our biggest dreams is having a place to call our own. Leaving your country or just your parents’ house is the first step we take towards achieving that dream.
There comes a point in one’s life that the ultimate sign of independence is finally having your own place, and for first-time homeowners this is a very daunting and crucial decision to make. Whether you’re an immigrant who’s a newcomer to the community or an adult who just happened to want a place of your own, it can be quite overwhelming for first-time homeowners to decide whether it is better to rent or buy a house. There are lots of factors you should take into consideration when making this decision, so here’s some helpful points to remember about renting versus buying your new home:
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 exceed this number, renting is still a quite popular option 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. Let’s take a look at some of it in the hopes of shedding light at which road is better to take.
Pros of Renting
One of the most important aspects of renting a place is that it allows tenants to have a certain amount of flexibility they won’t have if they do decide to buy a house. Some people don’t like the idea of being tied down to one place too long, so renting is a good option if you’re one of those people.
Renting gives you lots of mobility: if you’re not satisfied in your rental through the course of time, you can easily move somewhere else; if you get a new job that requires that you move to another city, you can easily leave your place and rent another in your new neighborhood.
Maintenance Not Included!
Perhaps one of the best things about renting is that you’ll have very low to absolutely no costs related to the maintenance of your rental place. For first-time homeowners, saving this extra money will definitely help put it on other future expenditures.
When your rental property needs any type of repair, you don’t have to spend anything as you can simply call your landlord and let them do it for you since that’s their responsibility.
However, it’s still important that you read the lease thoroughly to make sure that maintenance costs will not be your responsibility or that your landlord hasn’t added a clause allowing them to raise the rent in order to cover for their expenses.
Fixed Monthly Expenses
Another bonus for first-time homeowners who are looking into renting a place is that when you rent, you’ll know exactly how much you’ll be spending with housing costs at the end of the month. Because you signed a rental lease, your rent will remain the same for a fixed amount of time. Unless you decide to extend your lease, the owner can decide to keep it the same or increase it.
Not only that, renting a place allows you to save money for the time being because you won’t be spending money on fees and taxes that are applied specifically to homeowners.
Apparently, 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
Even though you signed a lease before you rent a place, your landlord can decide to raise the rates any time after that in case you wish to renew.
Due to inflation, rent prices need to get adjusted as years go by, so the landlord could raise the rental rates in order to avoid losing money, and the tenants renting their property can either stay or move out if they’re not willing to pay the additional rent.
Customization Is a No!
One of the most annoying things of living in a rental property is that you have no freedom to remodel or do some redecorations to meet your personal taste. It’s important to keep in mind that you’re renting someone else’s property, thus you have to oblige to the homeowner’s demands.
Most landlords will not allow tenants to do alterations in their rental property such as changing the room color, hooking up something on the wall, mounting a television set, or even changing the blinds!
Bear in mind that in case your landlord does allow you to make upgrades to the rental property, you’ll be spending your money to improve someone else’s house and once you move somewhere else you won’t get your money back.
No pets Allowed, Sorry!
If you’re an animal lover, your pet is certainly an official member of the family. Wherever you go, you want to take your beloved cat or dog with you. However, some homeowners have a strict ‘no pets’ policy, which 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, and that’s one of the main factors to consider when you find yourself facing the classic ‘rent versus own’ dilemma.
Buying A Home
Now, for first-time homeowners, it sure feels tempting to look into buying a house. Though it is more expensive than renting a place, nothing can compare to being a homeowner and having your own property.
The Canadian Rental Housing Index is an accurate database on housing statistics across Canada. According to their data, there are over 65,000 owner households in Saskatoon, Saskatchewan, which means that buying a house is quite popular in the region.
If you’re a prospective first-time homeowner struggling with choosing between rent versus own, here are some pros and cons of buying a house that can help convince you to become a homeowner!
Pros of Buying
MY OWN Home Sweet Home
Once you become 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 that does happen sometimes. If you buy a house, it’s your asset, your property. No one can kick you out from your own property.
Becoming a homeowner is ideal if you’re thinking of starting a family — or if you already have one. Houses often come with a yard and a garage (if you’re lucky) which are spacious enough and adequate for a family to live in. On top of that, when you buy a house, you’ll have the privacy and pride of finally going to your ‘Home Sweet Home’ at the end of the day!
Freedom To Customize
When you buy a house, you can make any upgrades that you want. Unlike rental places, when you become a homeowner, there are no landlords to tell you what you can and what you can’t do to the property. If you want to make upgrades, you’ll be spending your money on something that actually belongs to you.
Buying a house also means that you can opt to purchase a custom-built house that satisfies all of your expectations and needs.
Moreover, owning a house gives you the privacy that renting cannot provide. Living in apartment buildings — which is quite common when you’re renting a place — means that you have to live according to many rules established by the landlord and get along with other tenants. When you have your own house, you don’t have to answer to anyone because you’re the one who makes the rules!
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, for instance, can benefit from the First-Time Home Buyer Incentive that 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.
Yes, buying a house could be costly at first. You probably heard horror stories about expenses that come with being a homeowner, such as mortgage, insurance, taxes, utilities, maintenance, among others. However, there is something that you rarely hear when you can’t decide which wins the rent versus own argument: You can get all of that money back if you decide to sell your house someday.
Because Canada is a first world country whose economy benefits from the large influx of immigrants, its economy is consistently growing even more while other nations are watching as their economies shrink in the face of a global crisis.
It’s no wonder how real estate in Canada has witnessed steady growth and it’s highly unlikely this will change in the near future. Because of that, if you ever choose to put your house in the market, you certainly will get your money’s worth and more back.
Cons of Buying
As you have already noticed, being a homeowner comes with a lot of responsibilities. There are taxes to pay, maintenance to schedule and many other things. However, keep in mind that all those extra costs of owning a house can be reduced thanks to the several tax benefits provided by the Government of Canada.
Renting a place makes it easier for you to move to another place in case you’re not happy with your living quarters or if you need to move to another town, for instance. Being a homeowner reduces that mobility almost entirely. Make sure to consider whether or not you’re absolutely ready to settle down in the location of your choice before you decide to buy a house.
However, don’t forget that you can always rent your home if you ever need to spend some time away! Sign up for AirBNB and you’ll see.
Buying a house means investing your money in what is considered a non-liquid asset. Don’t know what a non-liquid asset means? A non-liquid asset is an asset that can be quite difficult to convert to cash. In other words, it means that a house is an asset that can’t be easily sold. Sometimes you have to wait months or even years on end before you find a buyer.
In spite of that, buying a house is still a plus, especially because first-time homeowners are purchasing a home without thinking of selling it in the near future.
Rent Versus Own: Final Verdict
Renting might be a great option for younger people who are still testing the waters of independence and are not looking forward to settling down yet. However, purchasing your very own home is the better option overall.
While renting might be more affordable in the short-term, you’re putting out money every month that doesn’t go anywhere near helping you build equity. Whereas spending the same amount on a house you bought is helping you just that.
Having pointed out all those, it’s no wonder buying a custom-built house is an answer that provides comfort, privacy, stability, freedom, tax benefits, and many more. Despite being a little more expensive than renting, buying a house is one of the best investments one can make, given that Canada’s economy has seen steady growth over the years and real estate is following the growth very closely.
Green Villas Construction
Now that you decided that buying a house is right for you, you’re probably thinking about buying real estate of getting one custom built for you. Choosing the right home-builder is essential in order to save money and also to get that guarantee that you’re investing your money in a high-quality, well-planned house. You’ll need to find the best in the business, Green Villas can do just that and so more!
Associated with the Saskatoon & Region Home Builders’ Association, Green Villas Construction is a notable home builder currently operating in Saskatoon, Saskatchewan that has completed several successful projects over the past 10 years, establishing harmonious and long-lasting relationship with their clients.
Green Villas has earned the Gold Service Award presented by the Saskatchewan New Home Warranty Program, which acknowledges Green Villas’ outstanding workmanship in the development of new custom-built houses as it specializes in developing high-quality residential and commercial buildings.
Now that you’re looking forward to being a first-time homeowner, you can get in contact with Green Villas by filling out the form or by calling the number available here. On top of that, you can also check their portfolio and see their past projects that include custom-built houses and commercial buildings!