Why Buying is Better Than Renting a Home

And now @shannonbadiee and I are officially homeowners.
Conventional wisdom has almost always dictated that buying a home makes more sense than renting. There is, however, an increasingly vocal minority which maintains that it’s the other way around. Echoed by many in the media, this minority might leave you wondering whether buying a home is a costly mistake. 

Although we firmly believe that it’s in your best interest to purchase a home, we fully appreciate the fact that a home is likely the single most significant purchase you’ll ever make. That’s why we’re listing a series of reasons, both personal and financial, which explain why buying continues to make sense. Especially in Canada. 

Since few people dispute the personal reasons that make home ownership attractive, let us start with the financial reasons:

Financial:
  • Interest rates are almost at a historic low. This helps make owning a home more affordable than ever.
  • As market trends see the cost of housing increase, the equity in owning your own home is building. 
  • If you are renting, you are spending your money with no return. 
  • There are mortgage plans that allow you to pay a small amount more each month (as if you are paying rent), yet you are paying down an asset of your very own.
Personal:
  • In terms of renovations and alterations, buying a home gives you the freedom and space to do as you wish
  • Owning such a personal space can give you a strong sense of pride and independence — it’s a dream come true. 
  • If you are renting, you cannot alter much of the appearance of that space and you must adhere to any of the policies outlined by your landlord in a lease agreement. They can even prevent you from installing a satellite dish antenna!
Buying a home has typically been an investment with many emotional and personal perks. The financial benefits are even more obvious in the long term, while the personal ones can be felt the moment you insert your brand-new key into the front door. 

Now it’s your turn — what are your thoughts?