Choosing between renting or buying your first house or condo in Square One might be challenging. As a renter or first-time homebuyer, you may believe that renting a home is less expensive than buying one for the first few years. However, some experts advise if you're capable, you should buy because you'll build equity rather than put money into something you won’t own. Hiring a skilled local real estate agent would be the best approach when deciding, no one knows the market conditions better than they do.
Advantages of buying a house or condo in Square One
- Owning a home contributes to the accumulation of equity, which translates to increased wealth over time. Many individuals utilize their homes as a kind of retirement fund, and products like home equity loans can help you access assets when you need them.
- According to the most recent Mississauga MLS data, the average property price for May 2021 was $1,064,630, compared to May 2020 with an average property price of $796,577. This indicates almost a 34% price growth rate.
- When you have a fixed-rate mortgage, your monthly payments are more predictable and consistent than when you rent.
- When it comes to adding extra furniture, altering the wall colour, installing new fixtures, or anything else that personalizes your home, you have no one to answer to.
Disadvantages of buying a house or condo in Square One
- Closing costs on a mortgage can range from 2% to 3% of the purchase price and includes things like property taxes, a home inspection, home appraisal, land transfer tax and lawyer fees, etc.
- Because the property is in your name, you'll be responsible for paying for routine house repairs and maintenance.
- The value of your home will rise over time, so don't expect a quick return on your investment.
Advantages of renting a house or condo in Square One
- While you should always treat your home with respect, you are not responsible for substantial maintenance as a tenant. When the toilet or stove must be replaced, the property owner is usually the one to take care of it.
- Renting does not require the same level of long-term commitment as purchasing a property does. In Mississauga, lease agreements are the standard, with both short- and long-term choices available.
- A two-bedroom apartment in Square One costs on average $2600 a month. While that is a significant sum of money, it is less than the cost of a mortgage. However, an average monthly mortgage cost for this type of property can be $3000, even though the cost is higher, the mortgage payments contribute to the value of an asset, meaning your earning equity, tax free.
Disadvantages of renting a house or condo in Square One
- Renters will not be able to accumulate equity because they do not pay for a mortgage or even pay for maintenance. Instead, the rent money is sent to the property owner, who might put it to good use by investing it and growing his or her wealth.
- You don't have the right to make changes to the rented space because you're living in someone else's home.
- Your monthly rental payments might be renewed in as little as six months or a year after you move in.
As you can see, there are numerous advantages and disadvantages to consider when deciding whether to rent or purchase a home in the Square One area of Mississauga. In general, you should consider purchasing a home because it will allow you to create equity and give you the ability to make decisions about the property that comes with owning a home.
Zivasa Realty Inc., Brokerage, can help you make this life-changing decision. They can debunk a few fallacies about renting vs. buying and show you a clear comparison of which is better because of their many years of experience. Contact Zivasa Realty today.