Predictability - when you rent property, you’re generally not responsible for general maintenance and upkeep. Your payment is pre-arranged and fixed for a set time period (typically one year, at least). You’re also protected by law against excessive rent increases in most Canadian jurisdictions. Sometimes, even your utilities are worked into this arrangement, further increasing the predictability factor.

Less Short-Term Financial Burden- As a renter, you don’t need a down payment like a mortgagee. The extent of your financial obligations are the first-months rent (and sometimes the last months, but not in British Columbia), damage deposit, pet deposit when applicable, and the monthly rent cost. 

Location Flexibility- Did you accidentally end up in the wrong area of town? As a renter, you have the freedom to move without excessive repercussion, especially if you carry out your lease term, at the very least. You avoid the stresses and market fluctuations homeowners experience, and you often have more choice of where to settle next. Moving from a lower-class area to a middle-class area as a renter is usually far more attainable than for a property buyer. 

Lack of Investment Potential - It’s true that when you rent, you’re indirectly paying someone else’s mortgage. Landlords generally rent their home out with the assumption of gaining value through equity over time. With a renter paying the mortgage each month (and sometimes, hundreds of dollars per month over and above this baseline cost), the landlord’s investment prospect is financed by the tenant. The tenant may have more predictability in their immediate financial obligations, but they also lose out on the increased equity that property might gain over the years.

Less Freedom - When I say freedom, I’m talking about property customization. For homeowners, the ability to customize their home to suit their unique tastes is a huge factor in purchasing a home. Renters do not generally enjoy such freedom. The extent of a renter’s renovation freedom is usually the painting of some walls or furniture arrangement.

Investment Potential - As a homeowner, your home purchase represents an investment in the local real estate market. While fluctuations in the market are highly dependent on location, most real estate markets will provide investment gains in the long-term. Earning equity allows you the freedom to make additional investments based on your goals, and often this means upgrading your properties over time. Sometimes homeowners begin in a condo or apartment; then as their property increases in value, they earn enough equity to afford the down payment on a single-family house. You are paying your mortgage instead of somebody else’s. 

More Freedom - When you own your own home, you don’t need to ask permission to make changes and upgrades. It is always wise to make smart renovation decisions but you have the utmost freedom to put your unique touch on important property aspects. Sometimes these are aesthetic changes; sometimes they’re functional. Want a treehouse in the backyard? Skip the permission stage and head to the hardware store. Need 200 amp service for a hot-tub? Start the process as soon as you’re confident in the outcome. 

Investment Reliability - There’s a saying that goes something like this, “the best investment on Earth, is Earth.” Real estate  is, in most cases, an immovable asset. Investing in stocks or other speculative assets can be inherently risky, based on perceived value and other factors out of your control. Aside from the real estate market forces in your particular area, your investment gains over time are highly reliable, especially as you upgrade the home to make it more desirable for the next buyer. 

Hefty Financial Obligations - The largest barrier for most aspiring homeowners is the dreaded down payment - which is a minimum of 5% of the purchase price. You also must have adequate credit and income in proportion to the home you seek. If you manage to purchase a house successfully, you now owe the lender that provided you with the mortgage for the foreseeable future (most of today’s amortization schedules are 25 years long!). You’re also responsible for all utilities and property upgrades, as well as the pesky unforeseen repairs. 

Moving Stress & Limitations - It is considerably more stressful to move as a homeowner, especially if you’re currently a homeowner relocating. You not only have to coordinate the selling of your property and the subsequent purchase of another with a variety of paid professionals, but you also have to plan for moving arrangements. You’re responsible for the home you move from being in substantially the same condition as you left it. As well, if your home hasn’t gained any value since you bought it, you may not be able to relocate as readily as you’d planned after paying all expenses. 

Predictability - when you rent property, you’re generally not responsible for general maintenance and upkeep. Your payment is pre-arranged and fixed for a set time period (typically one year, at least). You’re also protected by law against excessive rent increases in most Canadian jurisdictions. Sometimes, even your utilities are worked into this arrangement, further increasing the predictability factor.

Less Short-Term Financial Burden- As a renter, you don’t need a down payment like a mortgagee. The extent of your financial obligations are the first-months rent (and sometimes the last months, but not in British Columbia), damage deposit, pet deposit when applicable, and the monthly rent cost. 

Location Flexibility- Did you accidentally end up in the wrong area of town? As a renter, you have the freedom to move without excessive repercussion, especially if you carry out your lease term, at the very least. You avoid the stresses and market fluctuations homeowners experience, and you often have more choice of where to settle next. Moving from a lower-class area to a middle-class area as a renter is usually far more attainable than for a property buyer. 

Lack of Investment Potential - It’s true that when you rent, you’re indirectly paying someone else’s mortgage. Landlords generally rent their home out with the assumption of gaining value through equity over time. With a renter paying the mortgage each month (and sometimes, hundreds of dollars per month over and above this baseline cost), the landlord’s investment prospect is financed by the tenant. The tenant may have more predictability in their immediate financial obligations, but they also lose out on the increased equity that property might gain over the years.

Less Freedom - When I say freedom, I’m talking about property customization. For homeowners, the ability to customize their home to suit their unique tastes is a huge factor in purchasing a home. Renters do not generally enjoy such freedom. The extent of a renter’s renovation freedom is usually the painting of some walls or furniture arrangement.

Investment Potential - As a homeowner, your home purchase represents an investment in the local real estate market. While fluctuations in the market are highly dependent on location, most real estate markets will provide investment gains in the long-term. Earning equity allows you the freedom to make additional investments based on your goals, and often this means upgrading your properties over time. Sometimes homeowners begin in a condo or apartment; then as their property increases in value, they earn enough equity to afford the down payment on a single-family house. You are paying your mortgage instead of somebody else’s. 

More Freedom - When you own your own home, you don’t need to ask permission to make changes and upgrades. It is always wise to make smart renovation decisions but you have the utmost freedom to put your unique touch on important property aspects. Sometimes these are aesthetic changes; sometimes they’re functional. Want a treehouse in the backyard? Skip the permission stage and head to the hardware store. Need 200 amp service for a hot-tub? Start the process as soon as you’re confident in the outcome. 

Investment Reliability - There’s a saying that goes something like this, “the best investment on Earth, is Earth.” Real estate  is, in most cases, an immovable asset. Investing in stocks or other speculative assets can be inherently risky, based on perceived value and other factors out of your control. Aside from the real estate market forces in your particular area, your investment gains over time are highly reliable, especially as you upgrade the home to make it more desirable for the next buyer. 

Hefty Financial Obligations - The largest barrier for most aspiring homeowners is the dreaded down payment - which is a minimum of 5% of the purchase price. You also must have adequate credit and income in proportion to the home you seek. If you manage to purchase a house successfully, you now owe the lender that provided you with the mortgage for the foreseeable future (most of today’s amortization schedules are 25 years long!). You’re also responsible for all utilities and property upgrades, as well as the pesky unforeseen repairs. 

Moving Stress & Limitations - It is considerably more stressful to move as a homeowner, especially if you’re currently a homeowner relocating. You not only have to coordinate the selling of your property and the subsequent purchase of another with a variety of paid professionals, but you also have to plan for moving arrangements. You’re responsible for the home you move from being in substantially the same condition as you left it. As well, if your home hasn’t gained any value since you bought it, you may not be able to relocate as readily as you’d planned after paying all expenses.