The Benefits of Renting vs. Owning a Home or Condominium
For many, homeownership is seen as a real achievement in life. For the younger generations, the societal pressures of homeownership can be daunting and with the current real estate market trends, it’s a goal that might be unattainable, at least for the time being. Renting is often seen as “throwing money away” but that’s not always the case and it’s not just the younger generations that are starting to see the benefits of renting.
Why Opinions on Renting are Changing
It’s no secret that the cost of purchasing a home is deterring many potential buyers. According to a report by Mustel Group and Sotheby’s International Realty, 82% of Generation Z Calgarians who do not currently own a home are worried they will not be able to live in their community of choice due to the rising housing prices.
For all generations, the reasons people are choosing to rent instead of purchase are wholly based on their own personal situations. For those that are looking to get into the market, rental might be a short-term option as they continue to save for a down payment and see if and how new regulations put in place by the government may change the real estate market. For some it’s a short-term option as they pay off student loans or other personal debts that may impact their monthly expenses. For the more mature generations that have owned home for years, perhaps renting is the perfect solution when looking to downsize.
The Benefits of Renting in Calgary and Edmonton
Regardless of whether renting an apartment is a short-term or forever solution, there are many benefits to renting a 1- or 2-bedroom apartment:
Maintenance Costs & Repairs
Perhaps one of the biggest benefits to renting is the lack of maintenance and repair costs. When an appliance stops working or your roof starts to leak, a simple call to your property manager gets the ball rolling and leaves you without the stress of either trying to fix it yourself or find a reputable vendor to perform the repair leaving you with a hefty bill. This is a huge benefit to those waiting to get into the market as important savings are not being spent on unforeseen maintenance and repairs. This is also advantageous to former homeowners who no longer want to deal with the hassle of maintaining a home and the additional costs required.
Access to Amenities
Types of amenities available to renters vary by community, but this is something to seriously consider when renting. If you decide to rent in a community that boasts a nice fitness centre, an indoor pool or maybe even a games room, you could now save some money no longer having to pay for that gym membership.
At FirstService Residential, most of our 1- or 2-bedroom apartments feature modern amenities within each unit such as stainless-steel appliances, laminate floors, quartz countertops, and the most valued amenity, in-suite laundry. If you’re looking for some fresh air, most apartment rentals are equipped with a balcony or patio on ground floor units. We’ve also got your furry family members looked after as most of our properties are pet friendly.
Flexibility
Not being tied into a mortgage gives you more flexibility to live anywhere. If you work in the city where housing prices are more expensive than the suburbs, you can rent, enjoying the city life and a short commute. Oftentimes when people are looking to buy, they must move further out from the city, increasing commute times which can start to take a toll. Should you choose to live right in the city, you may not even need a car, further reducing your monthly expenditures. At FirstService Residential, many of our rental properties are close to downtown or close to areas with amenities, making living without a car a viable option.
If you are new to the province or country, renting is a great way to try a few different areas on for size before you decide where you want to settle. Whether you are looking for an apartment rental in Calgary, or a pet-friendly 2-bedroom rental in Edmonton, there are a lot of options for you to choose from and save money as you get established in a new career.
For retirees, renting offers you the type of flexibility you looked forward to upon your retirement. Renting can give you the opportunity to live closer to desirable outdoor amenities, keeping you close to your hobbies, or allow you to live near family. If you’re a snowbird, renting allows you to lock and leave your place without having to worry about upkeep that could be neglected when you own a property.
Lower Insurance Costs
Even as a renter it’s important to have insurance to protect you and your possessions from unforeseen incidents that can take place in shared buildings from time to time. However, tenant insurance is significantly cheaper than homeowners’ insurance. In Alberta, tenant insurance is typically in the $20-$30 a month range, while home insurance varies between $80-$200 a month with many factors at play.
Lower Utility Costs & Monthly Expenses
Utilities that are included can vary depending on the community you decide to rent in. FirstService Residential rental properties include heat and water, and some include electricity. Something else to consider when deciding if renting is right for you is the one-time security deposit equal to one month’s rent versus buying that requires a significant down payment. It is also important for potential renters to remember that property taxes would not be a cost they would need to look after. And finally, after purchasing your new home, monthly expenses need to include maintenance and upgrades to ensure your investment keeps its value. Especially in uncertain market times where you have no control.
While Owning a Home May Not Be for Everyone, Renting Can Be
It’s important to recognize that there is no clear-cut answer when it comes to deciding whether to own a home or rent. We understand multiple factors go into such an important decision and FirstService Residential is here for you. Visit www.fsresidentialrentals.com for more information.