When it comes to housing, there’s an endless debate between renting and buying. For some, renting apartments in Montreal is the better option. For others, buying a house or a condo makes more sense.
So which group do you belong to? Renting may be your best option if any the following apply to you:
- You don’t have the money to buy a condo unit. This is of course one of the more common reasons why renting is your best option. Your only other option when you don’t have money is to live with your parents. While that’s becoming more common in Canada, it may not be too acceptable to you.
When you rent an apartment, you don’t really need much money to begin with. You just need an advance as well as a deposit. When you buy, however, you’re going to have to give a down payment, and that’s invariably a bigger amount.
- Banks won’t lend you money. It doesn’t matter if you have the money for the down payment if you’re unable to convince the bank to put up the rest of the money you need. You can be denied a loan for several possible reasons. You may have too much debt, or you may have a poor credit score or history.
- You want to spend your money on other things. Even if you do have the money for a down payment and you can get your loan application approved, sometimes you may still decide to use the money for something else. For older adults, the money may be earmarked for their kids’ college fund. Retirees may want to use the money for a cruise. Young adults may wish to use their money for a new car.
- You’re anticipating a lifestyle change in the near future. Perhaps you’re getting married in a few years. If that’s the case, you may want to hold off buying a house until you’re married so your spouse can participate in the decision. Renting may also be a better choice if you’re now an empty nester. You don’t need a big house anymore when the kids have moved out.
- You’re not sure about living in a certain area for a long time. Perhaps you’re looking to go abroad, or you’re also looking for better work elsewhere. If that’s the case, then renting an apartment is much more viable. Renting makes it easier for you to leave a place, than if you own the place outright.
- You don’t want to be responsible for maintenance and repairs. Landlords are responsible for the maintenance and repairs of your place. That’s their job, not yours as the renter. But it becomes your job when you’re the homeowner, and those expenses can get huge. Also, renters don’t have to pay property tax.
There is a certain appeal to having your own place. But when you rent, you can have your own place without the hassle that comes with outright ownership.