{"id":27936,"date":"2022-08-17T11:04:11","date_gmt":"2022-08-17T11:04:11","guid":{"rendered":"https:\/\/www.thehouseshop.com\/property-blog\/?p=27936"},"modified":"2022-08-31T10:03:46","modified_gmt":"2022-08-31T10:03:46","slug":"renting-vs-buying-a-home-in-toronto-canada","status":"publish","type":"post","link":"https:\/\/www.thehouseshop.com\/property-blog\/renting-vs-buying-a-home-in-toronto-canada\/","title":{"rendered":"Renting vs Buying a Home in Toronto, Canada"},"content":{"rendered":"\n<!-- SEO Ultimate Plus (https:\/\/seoultimateplus.com) - Code Inserter module -->\n<script async>(function(s,u,m,o,j,v){j=u.createElement(m);v=u.getElementsByTagName(m)[0];j.async=1;j.src=o;j.dataset.sumoSiteId='b68b392479b5981b8acf46565e9fe32a0734fc21a1f7c1e60121eaa6ca1a1c64';v.parentNode.insertBefore(j,v)})(window,document,'script','\/\/load.sumo.com\/');<\/script>\n<!-- \/SEO Ultimate Plus -->\n\n\n<p><span>\u00a0<\/span>Toronto has always been one of the hottest real estate markets in Canada. After the COVID-19 pandemic, the demand has skyrocketed, with people on the hunt for new properties. By January 2022, Toronto&#8217;s real estate market was still over-active, as many young buyers had been moving back into the city.<br \/>You can find various properties within your budget through <span><a href=\"https:\/\/savemax.com\/buy\/toronto-real-estate\">Savemax listings in Toronto<\/a>. Whether you want to buy or rent in the city, you should consider a few things before getting approval for your mortgage or signing a lease.<\/span><\/p>\n<h2><span>Is it Better to Buy or Rent in Toronto?<\/span><\/h2>\n<p>One of the most challenging hassles you need to overcome when renting vs buying in Toronto is having enough money for a down payment or deposit. According to <span><a href=\"https:\/\/trreb.ca\/\">TRREB&#8217;s data<\/a>, the average cost of a one-bedroom condo has increased by 35% from 2016. <\/span><\/p>\n<p>If you knew that you&#8217;d be paying record rents six years ago, you&#8217;d probably have focused on saving for a down payment. Despite the prices reaching new levels, <span><a href=\"https:\/\/www.forbes.com\/sites\/navathwal\/2017\/05\/17\/why-millennials-are-interested-in-real-estate-investing\/?sh=c0530afa20ce\">86% of millennials<\/a> between the ages of 25 and 30 still consider real estate a good investment. <\/span><\/p>\n<h3><span>Buying<\/span><\/h3>\n<p>Owning property is something many people dream of, but such a big purchase comes with pros and cons. You should always consider your lending options and apply for secondary financing if you have a good credit score. Some of the pros of buying a home include:<\/p>\n<ul>\n<li>Capital gains tax exemption: According to the <span><a href=\"https:\/\/www.canada.ca\/en.html\">Government of Canada<\/a>, if you are selling your property (the solely principal residence for the time you owned it), you are exempt from paying any taxes on the gain.<\/span><\/li>\n<li>Owning a physical asset: When you buy a house, you can either decide to rent it out or use it for yourself.<\/li>\n<li>No landlords: You won&#8217;t have to answer to other people for what you&#8217;d like to do with your home, except the local housing authorities. When buying, you are in complete control of your home.<\/li>\n<li>Your home can become an investment: Buying real estate in any city can become an investment if you want to rent it or use it for a business.<\/li>\n<li>Financing options: With various financing options available today, it&#8217;s easier for younger buyers to march into the real estate market.<\/li>\n<\/ul>\n<p>Today, one-third of young adults live with their parents because they want to save money for a down payment. For a one-bedroom condo at $700.000, you&#8217;ll need a minimum down payment of 6.43%\u2014or $45.000. It may seem like a lot of money, but at the same time, this one-bedroom condo in Toronto rents for around $2.350 per month. This means that after one year of renting that condo, you will pay $28.200 in rent. This is almost half of the down payment and only for a year. It&#8217;s no wonder that millennials are choosing to stay with their parents.<\/p>\n<h3><span>Renting<\/span><\/h3>\n<p>If you are not ready to settle down yet or are not sure about your long-term plans, renting comes with its perks, too. Renting a property has always been more accessible and flexible. Depending on your neighbourhood in Toronto, renting can be more affordable. Some of the pros of renting in Toronto include:<\/p>\n<p>\u00a0<\/p>\n<ul>\n<li>Minimal costs: In some cases, renting proves to be cheaper than buying, especially considering the mortgage payment rates, closing fees, interest, down payments, and additional monthly costs.<\/li>\n<li>Minimal maintenance: The landlord or owner is generally responsible for maintaining the rental in good condition. They pay for or replace amenities.<\/li>\n<li>Better flexibility: Renting can offer you more mobility. You can move to a bigger condo or another neighbourhood, as there is no long-term rental commitment. You&#8217;ll be able to cancel your lease during renewal or find someone to take it over for you.<\/li>\n<li>No high insurance costs: If something happens that you didn\u2019t cause (a fire or a pipe causing a flood), the landlord or owner will cover the costs of repairs.<\/li>\n<\/ul>\n<h2><span>To Buy or Rent in Toronto?<\/span><\/h2>\n<p>The decision of buying vs renting is ultimately yours to make. You should make your final decision depending on whether you can afford to buy a property, want to pay your mortgage instead of someone else&#8217;s, or if you know where you will be in five years. While purchasing a property provides you with better housing security and increases your credit score, it comes with additional fees and taxes. Renting can allow you more mobility and may be more affordable; however, you still need to adhere to your landlord&#8217;s rules and regulations.<\/p>\n<p>\u00a0<\/p>\n<p>Both renting and buying can offer a great sense of independence, and the final decision should be entirely based on financial security and personal reasoning.<\/p>\n<h6><span style=\"color: #999999;\">\u00a0Ref: THSI-2967\u00a0 | ZD. 26196<\/span><\/h6>\n<p><span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0Toronto has always been one of the hottest real estate markets in Canada. After the COVID-19 pandemic, the demand has skyrocketed, with people on the hunt for new properties. By January 2022, Toronto&#8217;s real estate market was still over-active, as<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/renting-vs-buying-a-home-in-toronto-canada\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":45,"featured_media":27937,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"wl_entities_gutenberg":"","_lmt_disableupdate":"no","_lmt_disable":"","spay_email":""},"categories":[1],"tags":[],"wl_entity_type":[602],"modified_by":"Editor","_wl_alt_label":[],"jetpack_featured_media_url":"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2022\/08\/Toronto.jpg","wl:entity_url":"http:\/\/data.wordlift.io\/wl0502\/post\/renting-vs-buying-a-home-in-toronto-canada-27936","_links":{"self":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/27936"}],"collection":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/users\/45"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/comments?post=27936"}],"version-history":[{"count":2,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/27936\/revisions"}],"predecessor-version":[{"id":27939,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/27936\/revisions\/27939"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media\/27937"}],"wp:attachment":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media?parent=27936"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/categories?post=27936"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/tags?post=27936"},{"taxonomy":"wl_entity_type","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/wl_entity_type?post=27936"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}