Should you rent or buy in Nova Scotia?

Should you rent or buy your next home here in Nova Scotia? The debate between renting and buying is nothing new, but there is no definitive answer as to which side is right. As always, it all depends on your unique situation and preferences. Let’s review some of the major pros and cons of each option to help you decide which one is the better choice for you!

Renting pros

Renting a property has many benefits! One of the biggest appeals of renting is the fact that it involves much less responsibility in terms of maintenance and upkeep. Of course, you have to keep your unit clean and in good shape. However, repairs and replacements are generally the responsibility of the landlord. For example, if your stove breaks down, your landlord will be on the hook for the fix as long as the damage was not tenant-caused. This reduces the costs and stresses of maintaining the property. 

Renting also requires an overall lower level of commitment. Leases are generally one year and are then renewed on a month-to-month basis. This means you will never feel stuck or trapped in your living situation. If you are unsure where you want to settle or what property type you’re looking for, this is hugely beneficial. Your ability to relocate is much more flexible as a renter. 

Finally, people often find the rental market easier to break into. The approval process for buying a home and securing a mortgage can be lengthy and daunting. It takes a lot of time and effort, and also requires a much larger upfront cost. If you are not able to contribute a down payment right now, renting allows you to avoid this obstacle. 

Renting cons

There are a couple of drawbacks to keep in mind if you are considering renting. Since you don’t own the home you live in, you have much less control over how it looks and what it includes. You don’t have the freedom to install a new dishwasher, for example, or complete renovations. If you are passionate about being able to fully personalize your living space, this can be a deterrent. The other drawback is the fact that you will not build any equity as a renter. Even though you are paying to live there, your landlord is the one who will build home equity as the property owner. 

Buying pros

Owning a home also has some major attractions! As we mentioned above, home owners are able to build equity as they pay off their mortgage. With each mortgage payment, you collect more and more home equity. You can use this equity to access cash flow for renovations, or to help with the purchase of a new home if you ever decide to sell. Owning a piece of property can help you thrive in today’s market. 

Similarly, homeownership brings with it a sense of security. Everything is in your name, and you are responsible for all aspects of your mortgage. This feeling of being in the driver’s seat is empowering for many people, because it gives you control over how to manage your home. For example, if you want to refinance to access prepayments or switch mortgage products, the decision to do so solely rests with you. 

Finally, homeownership means having control over how you want your house to look. This can be very important to some people who enjoy personalizing their property. You can renovate, replace, and customize any aspect of the home you like!

Buying cons 

Of course, there are some potential drawbacks to be aware of when buying as well. The upfront cost of contributing a down payment can be the largest barrier, as this takes a lot of time and money to save for! People hoping to buy typically start planning their saving strategy years in advance. Once you own the home, you are also on the hook for ongoing maintenance costs and repairs. Finally, owning a home means committing to one location long-term. If you are unsure where you want to settle, buying a home might be too large of a commitment right now. 

Whether you live in Nova Scotia or elsewhere, the decision to rent or buy will take in all the same considerations. You should think about your financial situation, future goals, and preferences. If homeownership is something you’d like to pursue, you should also reach out to your local mortgage broker! We can help you secure the perfect mortgage product to support your homeownership goals. 

If you have any questions about your mortgage, get in touch with us at Clinton Wilkins Mortgage Team! You can call us at (902) 482-2770 or contact us here.