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Buying vs. Renting

Lifestyle talk, Toronto Condos

9 Benefits Of Renting a Furnished Apartment vs Home Buying

August 23, 2023

According to Canadian Housing Market Data for June 2023, the average home purchase cost is just over $700,000. With prices spiraling out of control and housing supplies hitting an all-time low, more and more people are considering renting vs. buying a house. 

While it used to be the conventional wisdom to purchase a house to build equity, the difficulty of affording a down payment in today’s market is quickly changing people’s minds. 

After all, no one wants to be house-broke and experience the stress and strain it can have on your quality of life. But there are plenty of advantages to renting instead of owning that many Canadians may not know about. 

In this article, we’ll discuss nine benefits of renting vs. home buying so you can decide what’s best for your lifestyle and budget.

Source: Pexels

1. You Get to Taste-Test Communities When You Rent

One of the most significant benefits of renting vs. home buying is that you can try the neighbourhood on for size. Renting allows you to sample different areas and determine if a community suits your lifestyle before making a major financial commitment. 

There’s no need to worry about selling your property or dealing with complex paperwork if things don’t work out. You can simply move on when your lease ends and try another area that may be better suited for you. 

This makes it easier than ever for renters to explore their options without worrying about being stuck in an unsuitable neighbourhood or town.

2. Kickstart Your Housing Journey With Lower Upfront Costs

Buying a home can be an exciting and rewarding experience; however, it’s not for everyone. Before making the decision, consider the upfront costs of buying vs. renting. In Canada, when you buy a house, the down payment is between 5% and 20%, depending on provincial regulations and may include closing costs such as lawyers’ fees or land transfer taxes, which can add up quickly. 

In comparison, when renting, there are usually no additional costs outside the first and last month’s rent, so you know exactly what you are signing up for. By opting to rent, you’ll forego those sky-high initial costs, allowing you to take the time to save for your future home. 

3. Wave Good-Bye to Property Taxes

Property taxes are an unavoidable part of home ownership in Canada and can represent a significant financial burden. The amount of your tax bill generally depends on where you live, as taxation rates often vary from one municipality to another. 

When it comes to renting, however, those pesky property tax payments become someone else’s problem! Your landlord is responsible for paying these taxes each year – leaving more money in your pocket that you can put towards other things such as savings or investments. 

Source: Pexels

4. Enjoy Deluxe Building Amenities When Renting

Living in a rental property allows you to take advantage of luxury amenities provided by the building. Many deluxe rental buildings come with amenities such as: 

  • Rooftop infinity swimming pools with private cabana lounges
  • Hot tubs and saunas 
  • Fitness centres
  • Billiards and bowling
  • Concierge services 

You can also enjoy community gathering areas like lounge rooms and outdoor patios for hosting events or relaxing with friends. With renting, you don’t have to worry about any added costs associated with maintaining these features – all the work is done for you! 

5. Maintenance is No Longer on Your To-Do List

When you rent, you no longer have to worry about the upkeep of a home. From broken doorbells to clogged drains, all the repair and maintenance issues become someone else’s problems. 

When something needs fixing, your landlord or property manager is only a phone call away. And because they are responsible for many properties, they can access reliable service providers and resources to complete repairs quickly and efficiently. 

As an example, DelSuites offers 24/7 emergency services, so you always feel secure knowing help is just one call away, no matter what time it is! So, if something unexpected happens in the middle of the night, you don’t have to worry about being alone and having to figure out how to fix it yourself. 

6. Never Worry About What Your Property Is Worth

Are you worried about what your property is worth? Renting provides a great solution to this concern. When you purchase a home, its value can fluctuate over time due to changing market trends or unexpected events. That means that an investment in home ownership could end up being less profitable than expected. 

On the other hand, renting eliminates the risk of potential devaluation and keeps your finances safe. The numbers are jaw-dropping, with Canadians losing over $990 billion in net worth in April, May, and June this year alone. 

You can maintain your financial security by avoiding these risks associated with purchasing property.

7.  Easy Moves and Downsizing

Moving can be a huge hassle, especially regarding home buying. Renting an apartment or house provides the flexibility to move quickly and without much fuss. Are you looking for something closer to work or school? If you need space for a growing family or want to downsize to a smaller place, sign a new lease and relocate on your schedule. 

Without selling, you don’t have to worry about real estate fees, appraisals, marketing costs or other associated expenses that come with the sale of a home. All you need to do is inform your landlord or apartment manager that you plan on moving out, and they’ll take care of the rest. 

8. Financial Security With Fixed Payments

Renters can know precisely what they’ll pay each month. This means you can budget accurately and won’t be subject to any unexpected increases in your monthly mortgage payments due to increased interest rates. 

On the other hand, homeowners may find that their payments are going up if interest rates rise; this could cause financial hardship if not adequately prepared. Renting gives you peace of mind that your rent payment will remain relatively consistent over time, allowing you to plan accordingly and stay within your budget.

9. Save on Monthly Utility Costs and Insurance Fees

Renting a furnished apartment in Toronto or home can be an excellent way to save money when it comes to utility costs and insurance fees. When you rent, you typically don’t have to worry about significant utility bills like water, electricity, and gas – those are usually taken care of by your landlord or rental property manager. 

On average, a homeowner in Canada can expect to pay between $200 and $450 on monthly utilities. In comparison, renters don’t typically pay more than $150 monthly – or less if their utilities are included.

On top of that, most renters also avoid paying for homeowner’s insurance – another significant cost savings. Homeowner’s insurance, on the other hand, can cost an average of $1000 a year. So, renting could be the smarter choice when it comes to your monthly expenses.

Rent With DelSuites and Save Yourself Time and Money

Renting vs. home buying each has its unique benefits. Furnished apartment rentals are an excellent option for those with an ever-changing lifestyle who want flexibility and want to save money in the long run. 

With home buying, you get the stability of owning your own place and being able to customize it as you please; however, this stability often comes at a higher cost. 

If you’re looking for a short-term rental while exploring different neighbourhoods or need temporary housing during relocation, DelSuites Luxury Short-Term Rentals are perfect for you.

Our properties are child-friendly, pet-friendly and located throughout the GTA, so you can find one in your ideal neighbourhood. We also offer many amenities, including fully furnished accommodations, on-site housekeeping and laundry services, and more. 

So, if you’re looking for the best of both worlds – the stability of home owning with the flexibility of renting – consider DelSuites. Contact us today to learn more about our Luxury Rentals in Toronto and start finding your perfect place.

Business Travel, Real Estate Agents, Toronto Condos

5 Things to Consider When Choosing Between Renting and Buying

July 9, 2023
buy or rent in toronto,

You may have heard the advice that rent is money that you are throwing down the drain, especially, if you’re not making a mortgage investment.  However, due to the increase in the pricing of housing around the Greater Toronto Area, more houses have experienced a drop in affordability in the past few decades, and buying one isn’t an easy option for everyone. 

So, the debate on whether to rent or buy is very complex from a financial perspective. And it can get a bit confusing which one to choose.

Are you trying to decide which decision is right for you? Read on for a side-by-side comparison of their pros and cons to help you know whether renting or buying is best suited to you.

Flexibility vs. Stability

With mortgages, you receive financial penalties for breaking it by moving and you have to pay taxes to sell your property. But with renting, you can move after your initial lease is over, which is typically after 12 months. 

This benefits you if you’re thinking of moving any time soon or want to have the flexibility to move at any point in your life rather than committing to one place.

On the other hand, when you own a home, you can always have peace of mind that you’ll never get suddenly evicted. Also, you’re in charge of making all the decisions about your home – not your landlord. Want to renovate it or add the ensuite you’ve always wanted? Go ahead. 

Buying a Cheaper Apartment vs. Retaining Capital Gains

Monthly mortgage payments can be higher than the cost of rent – at least in the beginning.

By and large, it’s usually cheaper to rent. But this heavily depends on where you choose to live.

Another thing to consider is that when you rent, you don’t retain capital gains. But if you own a home, you’ll pocket the additional equity if the value of your home increases. 

And if you choose to sell it in the future, you’d realize the capital gains.

Access to Alternative Investments vs. A Simple Investment

Renting your home doesn’t mean you can’t make investments to benefit you in the future. Since you’ll likely save money by renting, you can invest what you’ll save into stocks, a GIC, or starting your own business.

On the other side of the coin, owning a home is a simple investment into your future, which is one of the things that makes it so attractive to some people. Once you’ve paid it off, it’ll be a guaranteed asset. And you don’t have to spend time worrying about the uncertainty of stocks or bonds. 

Having More Disposable Income vs. Building Up Equity

Homeowners take on a considerable amount of debt, which may hinder them from investing elsewhere, such as RRSPs or TFSAs. In some cases, homeowners may even find that they have to spend most of their income on the costs of homeownership. 

But with renting, you can have more financial freedom. So, you can save up for retirement and have more money left over for other needs and wants. 

On the other hand, every monthly payment you give towards your mortgage helps you build equity in your home. And the amount of interest you have to pay will decrease over the years. 

Less Maintenance vs. More Privacy Without a Landlord

The benefit of renting a property from a landlord is that you’re free from all the hassle of its daily maintenance and upkeep. 

Although you still have to pay for repairs, your landlord is the one responsible for maintaining your home. This saves you more time and not to mention, extra costs. 

But the downside to this is that while you’re living on their property, they’re in charge. And you wouldn’t want to deal with a landlord policing your actions or a surprise eviction notice.

DelSuites Has the Perfect Rental You’re Looking For

Are you considering choosing a rental but don’t know where to start looking? Or are you waiting to close a deal on a new house and need to vacate your current property before the closing date? 

Whatever your need is, we have the right rental for you. We have apartments and condos, as well as short-term rentals and leases. We also have furnished and serviced options.

And with all our locations in Mississauga, North York, Scarborough, and many more cities, you can choose the location that’s best for you. 

Ready to get started? Browse through our numerous options to find the rental that’s best suited to you today.