The Age-Old Question: Buying Versus Renting?

Real estate seems to be one of the safest investments today with great returns. Still, the age-old question of buying or renting still continues to plague many Canadians. With interest rates at an all-time low, it seems like a no-brainer that people should be buying. But there are other factors still to be considered that does not make either option a clear-cut choice.

The Good and Bad of Buying Versus Renting

There are several advantages and disadvantages to buying your own home. Every individual should assess the pros and cons based on his or her own personal situation:


  • Many home buyers feel a great sense of pride in homeownership because it can truly establish independence. Making one of the biggest financial decisions of your life and proving you can make it on your own two feet is enough to make anyone proud.
  • You have your own space and the freedom to do what you want with it.
  • Investing in your future is a wise decision because homeownership can have many financial benefits. As current market trends see housing costs increasing, you are building equity in your home. That also means adding to your personal net worth instead of “throwing” your money away as rent.
  • If you have stability and plan to stay put for many years then homeownership makes sense.
  • Owning a home is often as affordable as renting with interest rates at an all-time low.


  • If your future is uncertain and you plan to move within a few years, you will not likely recover the closing costs of buying a home. It might be to your advantage to rent until you have more permanent plans.
  • A down payment is required to purchase a home along with funds to cover various closing costs, legal fees, etc.
  • Additional costs on top of your monthly mortgage payment can include property tax, insurance, utility payments, landscaping, upkeep, repairs, renovations, etc.
  • You may not be able to afford what you want and you might have to settle for what you can afford. This may also limit the areas in which you can purchase.

The Good and Bad of Renting

In the debate of buying versus renting, renting is generally seen as the worse option. There are several advantages and disadvantages to renting, but every individual should assess the pros and cons based on his or her own personal situation:


  • A down payment is not required to rent. Many people have difficulty coming up with enough money for a down payment which prevents them from buying a home. A damage or security deposit may be required to rent, but it is typically only one month’s rent.
  • Don’t have to pay property taxes or other expenses such as utilities because they are often included in your rent.
  • You have a better idea of what your monthly expenses will be and this can make it easier when living on a budget.
  • The tenant is not responsible when things go wrong with appliances, plumbing, etc. You can simply call your landlord and have him or her deal with the problem.
  • More options might be available for desired areas, buildings, etc.


  • You are not investing in your own future or net worth. You might be viewed as throwing your money away.
  • It means adhering to policies and rules as outlined in a lease agreement.
  • You do not own your own space.
  • There could be rental increases.
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