As of 2021, the rate of renters in Canada reached 22% (876,000 households).
Finding your first home can seem very daunting. It’s a big step, and you might be worried about picking the wrong property. Buying a house is a huge commitment, so many first-time home buyers choose to rent instead.
In this guide, we’ll explain why renting a home can often be the best choice for first-time buyers. Keep reading for more.
No Long Term Commitment
This could be a major factor for many people when choosing whether to rent or buy a home. A typical lease lasts for 12-24 months, and you may even be able to find some on a month-to-month basis.
In such situations, you won’t be obliged to stay in the property any longer than the length of the lease. This can be ideal if you’re not 100% certain you want to live in the property for a long time.
No Responsibility for Maintenance
Homeownership comes with many positives, but also some negatives. One of them is the level of responsibility you’ll have with regard to the state of the home.
When renting, you’ll need to handle simple maintenance and small repairs yourself, but larger issues will fall to the owner. If there’s a plumbing issue or a leak in the roof, for example, the owner will be the one to organize and pay for repairs, making things easier for you.
Minimal Unexpected Costs for Repairs
You aren’t likely to have any sizable expenses appear unexpectedly. If an appliance breaks suddenly and a replacement is needed, the landlord will be the one paying for a replacement. Not having such financial burdens is ideal for anyone.
Could Be Cheaper Than Owning
Many people don’t want to rent because they feel like it’s costing them too much money. In many cases, however, it can actually cost a lot less.
This can vary depending on the real estate market in your area. It may be worth running the numbers so you can compare the costs of owning and renting, then you’ll be able to make a suitable decision.
No Down Payment
A down payment will always be a sizable sum, and saving this up may not be easy. When you choose to rent a home, you don’t have to think about this at all.
For a rental, you will need to put down a security deposit, but this is often equal to 1 or 2 months’ rent – far less than a down payment. This makes renting far more accessible for most people, as down payments can easily cost thousands of dollars.
If you can’t afford a down payment but want to purchase a home, there may be other solutions. Find out about rent to own linked here, which is an ideal choice in some situations.
The Right Choice for First-Time Home Buyers
For any first-time home buyers, there can be some tricky choices. You need to consider what you want, your financial situation, and what you’re planning on for the future.
For more lifestyle articles, check out some of our other blog posts.