Rent or Own ???
High rent and home prices raise the question?
Rent vs own is a big question for legit argument, so many people think that renting is just waste of money you are throwing money out of the window and at the end you build nothing where as some people thinks rent is much cheaper then carrying a mortgage burdon on your shoulder and wasting your money on property tax and housing insurance you can save those money and invest it some where you can get 100% back so let’s dig into it.
Rental housing allowances has been increased by 20% by Ontario Legislators. According to Toronto Real Estate Board report, the average one-bedroom condo apartment rent is approximately $2000 and two-bedroom apartment is approximately $2700 so every year the increment is over or nearly double digit.
This spring, Toronto housing market was very varying from what expectation was the house sale signs was hanging on for so long then the expectation was, In April, the home sales were so low this year as per Canadian real estate association, where as the condo market was picked up high.
Renting is not easy and cheap too. Over 40% of Canadians spend their 75% of income on rent. Some 4 million families in Canada lives in rental property Nearly 40% Canadians lives under renting and over 30% Canadians spending income on mortgage. But tight mortgage rules and high interest rates makes difficult for Canadians to go for monthly mortgage but stay under the rental roof. 4 in 10 people spending more than 30% of their income on rent and nearly 2 in 10 people, rent eats over half of their income and on high risk of being homeless.
Canadian wages are not going up the way the rent increment is, for example average rent Costs rose by 20% over five years and average income goes up by 12% only. In Toronto, you need six figure salary to buy a property means a condominium or a town house if you are lucky enough. According to census the average house hold income stands at approx. $75000 so it is not so bad, country’s average income is enough to buy an average house.
Truly, none of the above arguments proved right and totally depends on one’s individual situation and of course on the current housing market situation. Playing with some numbers and research can definitely give you better idea for you to rent a house or own it. You just need a knowledgeable and experienced person to make it possible.