To Rent or To Buy? That is the Question

To Rent or To Buy? That is the Question

Monday Feb 07th, 2022


Knowing whether to rent or to buy can be a challenging decision to make, especially in today’s market. You may think that renting is cheaper than buying, but as a real estate investment expert in the GTA, I know that having the right plan can save you money in the long term. That’s why I believe in strategizing to maximize.


There are a few factors to consider when deciding to rent vs. to buy. Toronto is one of Canada’s most expensive cities, and rates are rising. Property valuation has skyrocketed, and it is more competitive than ever to find a reasonably priced home. So, let’s dive in, shall we?




1. Maintenance is a non-issue

While it's fine to treat your home with respect, it's not your responsibility to regularly maintain it. When it comes to cleaning, the property owner will usually take care of it.

2. It’s a short-term commitment

In most cases, renting doesn't involve a long-term commitment. In Toronto, most people rent for short-term periods while they're still settling in the area.

3. Monthly payments are lower

One-bedroom apartment rentals in Toronto are typically $2,300 a month. While that's a lot of money, it's not as much as the monthly mortgage payment.

4. Flexibility

Since rentals are only temporary, you don't have to worry about selling if the area is too noisy or needs a long commute to work. You can also rent in Toronto for a short-term basis.


1. You can’t build equity

Even though they don’t take out a mortgage, renters can’t build equity in their homes simply by paying their rent. Instead, their monthly payment goes to the property owner.

2. Rent money is gone forever

Aside from paying off your mortgage, rental money can’t be recovered as it’s still used to live in the same house. This means that you won’t be able to make a profit from it.

3. You can’t alter the property

Since you’re living in someone else's home, you can't alter the size of the house or its interior design to your own.

4. Rent cost could increase

Unfortunately, monthly rental payments can also be renewed for a long time. If you're low on cash, this could mean giving up on the house or taking on debt.

Now let’s talk about owning a property


1. Long-term Commitment

If you’re thinking about buying a home for the long term, here are some reasons why it might not be the best idea.

2. Maintenance is on you

Since the house is yours, you'll have to spend a lot of money on regular maintenance and repairs. By choosing a good builder, you can avoid paying a lot of money for repairs and maintenance.

3. Cost up front

The cost of a mortgage can vary between 2 and 5%. Some of these include home inspection, insurance, and property taxes.


1. You build equity

Home ownership can help build wealth over time. It's also a great way to save for retirement. Many people use their home as a retirement fund.

2. You’re in control

With a home of its own, you can do anything you want with it. However, since it's your domain, you can't ask for help with anything.

3. Great investment in the long run with predictable ROI

Toronto's Greater Toronto Area is a hot real estate market that's making it difficult to acquire. However, it also represents a solid investment.

Having a fixed-rate mortgage can give you more stability and predictability in your payments.


There you have it, the pros and cons of each choice. When considering your options, you want to base your decision in what’s right for you. My personal advice, is that buying a home is the smart choice. You’re putting down money either way, why not make that money work for you, and bring you equity and profit for decades to come? Owning a house will also allow you to create a HOME, something harder to do with a rental. Having a plan is key. I’d love to talk more over a free consultation and walk you through some options! Contact me today and let’s figure this out together.

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