Renting vs. Buying: Which Makes More Sense?
Renting offers flexibility, allowing individuals to move easily, explore different neighborhoods, or travel without the commitment of homeownership. It can also be a financially viable option, especially for those who prefer to invest in stocks, businesses, or other assets rather than tying their wealth into real estate. As Burlington Broker Clinton Howell points out, “Owning a home is not the only way to build wealth.” In some cases, renting can be more economical than buying, depending on market conditions and personal financial goals.
When is the Right Time to Buy?
For those considering homeownership, long-term planning is key. Howell suggests that if someone envisions staying in a location for five or more years, it might be time to consider buying. Homeownership provides an opportunity to build equity, ensuring that instead of paying rent, the money goes toward a mortgage. Historically, holding onto real estate for the long term results in strong financial returns, with capital gains tax exemptions for primary residences offering an additional advantage. According to Statistics Canada, homeowners tend to be significantly wealthier than renters, with median net worth figures increasing substantially with age.
Is Now a Good Time to Buy?
Timing the market perfectly is nearly impossible, but time in the market matters more than market timing. Howell explains that while the real estate market has seen some declines, current conditions—with lower prices and reasonable interest rates—make it a good opportunity for buyers. Housing shortages, steady immigration, and buyer demand continue to support long-term real estate values. Whether looking for a vibrant city condo, a home near transit hubs, or a family-friendly townhouse, first-time buyers should assess their lifestyle goals and financial stability to determine if now is the right time to invest in homeownership.
For expert guidance on buying in Burlington, Waterdown, Ancaster, and beyond, contact Clinton Howell at RE/MAX Escarpment Realty or call 905-537-2246. Watch his weekly market updates on YouTube, and follow him on LinkedIn, Instagram, and Facebook.
