Should You Rent or Buy a Toronto Condo?

The Toronto market is full of listings for condos for rent and condos for sale. This is one aspect of the housing market that will always stay the same. Everyone needs a home – a place they can call their own and feel comfortable and safe. Renting and buying are two options that you have when you are looking for a place to live.

When you want a place of your own, you do have to consider the pros and cons of each option. There are advantages and disadvantages to both , so it is important for you to consider the negative as well as the positive aspects in making your decision.

With renting, you have the option of signing a lease for a period of time, such as six months or a year. You can also choose the option of month-to-month so that you are not locked into a contract and as long as you give a month’s notice, you can move at any time. If you are looking for a place in a city to which you have moved for work and are not sure whether or not you will stay, the latter option is the best one to take.

Many people who do want to purchase a condo in Toronto at a later date rent first while they are considering their options and get to know the different neighbourhoods. This gives them time to choose the best location, such as being close to shopping, schools and recreation facilities as well as being close to where they work.

One of the advantages of renting is that you don’t have to worry about making a mortgage payment every month. You do have to pay rent, but at least you know that you don’t have a commitment signed at the bank and that you can move to a cheaper location at any time. The only worries that you have is that you must make sure you leave the condo in clean condition so that you can get the full refund of your damage deposit. If you do have a lease signed, you are locked into the rental agreement, but once it is over you can move to wherever you wish.

The amount you pay for renting a condo is usually significantly less than buying a condo. The monthly payment is less than that of a mortgage and you have low insurance costs because you only have to insure the contents that you own. There are no closing fees involved and you don’t need to engage the services of a lawyer.

If you plan to put down roots in an area and plan on being there for a long time, buying a condo is a great option to consider. If you add up the amount of rent you would have to pay over 20 or 25 years, you will see the advantage of taking out a mortgage. You will pay the money to yourself each month and as the outstanding balance decreases, you will build up equity in the condo. After a period of time you can sell the condo and make a profit.

When you rent, you do have to answer to a landlord and you cannot make any changes inside the condo without permission. You may or may not be permitted to have a pet in the condo. By buying your own condo in Toronto, you answer to no one but yourself and you can do whatever you wish. You can have as many pets as you wish and have guests staying overnight at any time, which is usually another of the restrictions placed on renters.

Landlords can also increase the rent at any time, but when you have a mortgage payment it will remain fixed. Even though your condo will be worth more on the market, your payment won’t increase and when you fulfill the terms of the agreement, you own it free and clear.

There are advantages and disadvantages to renting and buying. It is important that you are aware of both sides of the issue before you choose the best option for your needs.

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