September 25, 2018 | Buying

Rent Vs. Buy: Calgary Edition

Rent vs. Buy

Are you making a decision about your future living situation? Here we’ll look at the pros and cons of the two major options available—it’s rent vs. buy, Calgary edition.

I remember when I first started thinking seriously about homeownership. It was an exciting possibility, but I also had a few misgivings. Was I ready to take on the responsibilities that come with owning property?

Making the leap was one of the best decisions I’ve ever made. It’s one of the reasons I got into real estate—to help people find their own little pieces of paradise. That said, not every Calgarian is ready for homeownership. It comes down to your priorities, your goals, and your financial situation.

Renting Pros

Affordability

This August, the average single-family home price in Calgary was $424,471. That’s an affordable sum compared to many markets, but it’s still a hefty chunk of change—especially if you’re used to paying $1000 a month in rent. Renting also means you don’t have to worry about mortgage payments, property taxes, and the cost of upkeep for a home.

Less maintenance

Speaking of upkeep, it’s easy to get used to a low-maintenance living situation. Let’s face it: life can be stressful. Dealing with a broken air conditioner or a leaky window never helps. Apartment living means not having to worry about annoying repairs and upgrades.

More freedom

Last but not least, renting can mean more flexibility when it comes to travel and future living arrangements. Whether you need to change your surroundings or you have to move for work or personal reasons, the process will usually be easier if you’re a renter.

Renting Cons

It’s not an investment

Renting can mean extra money in the bank—in the short term. That said, try adding up what you’ll be paying in rent if you stay put for the next 15 or 20 years. That’s a whole lot of money to spend on something you don’t own.

More restrictions

When you’re renting, you don’t have much freedom to make your space your own. If you want to replace your carpet, linoleum flooring, or wallpaper, you’ll have to run it past your landlord. And in most cases, you can forget about remodeling.

Less security

Here in Alberta, there’s no set limit on how much a landlord can increase your rent. There are also many situations where your tenancy can be terminated. As just one example, your landlord can ask you to leave if one of their relatives wants to move into your unit.

Buying: The Pros

It’s a buyer’s market

If you’ve always dreamed of buying a home, now might be the time to take action. Here in Calgary, it’s a buyer’s market. Inventory is up, which means there’s a wide selection of homes available. Prices are also relatively affordable, which is great news for both first-timers and move-up buyers.

Buying is an investment

Owning a home boosts your net worth and allows you to build equity. The value of your home can appreciate over time, and you get to choose when you sell it. When you get right down to it, you have to live somewhere. Why not build your personal wealth at the same time?

More creative freedom

When you buy a home, you can make it your own. Want to renovate your kitchen? You can. Hoping to add a guest bathroom in your basement? Go for it. So long as you abide by local zoning regulations and obtain the proper permits, you have the freedom to do what you want to your house.

Buying: The Cons

Additional Costs

Of course, buying a home will cost you. At the very least, you’ll have to make a down payment of 5 per cent on your purchase price. After that, you’re responsible for monthly mortgage payments (with interest), property taxes, and home insurance. Fortunately, Albertans don’t have to pay a land transfer tax (a fee most provinces charges on home purchases, ranging from 0.5 to 2 per cent).

Responsibility for maintenance

It’s not just the costs associated with home repairs that worry some potential buyers. It’s also the hassle. As a homeowner, you can’t call up your landlord when your plumbing malfunctions or your ceiling shows signs of water damage. You need to arrange to get the work done yourself.

Moving may be more challenging

When and if you decide to move again, you’ll have to sell your home. The selling process can be stressful and time-consuming—though an experienced Realtor will help ensure that it’s as quick and profitable as possible.

At the end of the day

There you have it, folks: rent vs. buy, Calgary edition. The bottom line is that there are upsides to both renting and buying, so you should think carefully before making your decision.

Here’s what I will say: every day, I work with buyers who believe that the pros of homeownership more than outweigh the cons—especially now, when market conditions are favourable to buyers. If you want to purchase a home (and you’re mentally and financially prepared to do so), you don’t have to go through the process alone. An experienced local Realtor can help you find the perfect place to call your own.

Thinking of buying your first home? I have the experience to help you through the buying process. Get in touch, and we can discuss your needs!

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