Residents of Alberta who are in the market for buying a house will likely have many aspects of such a purchase to consider. Residential real estate prices are high, and careful thought must be put into the available options. It is never easy to choose between buying a home and renting one because there are so many pros and cons attached to both.
Renting will require one month's rent as deposit and possibly also a deposit to cover damages, but after that, monthly costs will be a fixed amount, which will likely be lower than the monthly costs of a bought property. The combination of property taxes, mortgage, maintenance and utilities can come to a substantial monthly expense. Some may have the added cost of instalments on furnishings and decorations.
Owners of residential property will have the advantage of building equity while paying off the mortgage, compared to rent money that goes into the pocket of the landlord. Both options offer potential income opportunities by subletting rooms, and homeowners can also borrow against their property. Maintenance can be a substantial expense for which renters will not be responsible; however, they will have to rely on timely repairs by landlords should there be events such as burst water pipes.
Alberta residents who are unsure about whether to rent or to buy may obtain valuable information and advice from an experienced residential real estate lawyer. He or she can explain the pros and cons and also make sure potential home buyers are not caught unaware of hidden costs. When buying a home, the advertised price is never the amount required to purchase the property.
Source: getsmarteraboutmoney.ca, "Renting vs buying", Accessed on Aug. 5, 2017