Renting in Canada, especially in real estate markets such as Vancouver and Toronto has been viewed by many as a waste of financial resources whereas buying a house is the best form of investment one can make if they finally decide to have an independent life away from family.
One common misguided idea that is also held by many Canadians is in the assumption of an increase in the value of their properties and condominiums will definitely increase with time. But despite the fact that the location of a house, its price and current state has some influence on the value attached to the property, in reality, the value of a property over time depreciates or remains constant. This ideology makes the real estate market a gambling game for prospective young buyers and home owners.
According to Josie Sorelli, a Toronto resident, after three years of owning a condo, he sold his property for a less admirable amount. In his opinion, he would have rather rent a property rather than buying a house which involves a whole lot of financial process.
With so many condominiums being listed on the market, it becomes difficult for previous home owners to sell their properties at the same amount new condos are sold. Homeowners who eventually decide to sell their houses in most cases have to move to other markets in search of more reasonable properties to purchase.
This leaves one to wonder, what has brought about all the fuss about renting in Toronto?
Rental properties proves to be very beneficial especially for people who are seeking to be temporal residents in a certain province for employment reasons, schooling or medical reasons just to name a few. The finances to be poured into making down payments, property taxes and home prices can be saved instead when one decides on renting.
And at a time which home prices in Toronto are very high, renting seems to be making more sense than buying at a time when the market is really hot. Numerous prospective buyers are holding onto their finances until a market correction takes places before deciding on whether to buy or continue renting.
For first-time buyers that are still unable to saved enough to make down payments, renting is a better option which simultaneously puts a shelter over their heads and also helps them save up to be able to afford a home.
But for people who still insist on buying, it would be advisable for them to be completely aware of the responsibility and cost involved when buying a house especially a condo.