The Advantages of Being a Renter in Toronto
If you’re a fresh graduate seeking to find your first ever space away from your parents’ place or if you’re the breadwinner of a small family prepping to relocate, it’s time to think about what housing option is best for you. While it might seem like a smart idea to buy a house right off the get go, that’s not always the case. If you really want to make the most of your money you should consider renting. There are few cities in the world with a better, more varied rental market than Toronto.
Reduced Buying/Selling Expenses
In Ontario, when you buy a home you will have to pay the Provincial Land Transfer Tax (PLTT). And the City of Toronto charges an additional Municipal Land Transfer Tax (MLTT). First time homebuyers are eligible for a rebate for a maximum of $2,000 for the PLTT and $3,725 for MLTT, but that won’t necessarily be enough to cover you. The amount of the tax depends on the value of the property, but as an example, the combined land transfer tax you would have to pay for a $500,000 property is $12,200. So take the down payment for your home, add the land transfer taxes, lawyer fees, and the expenses add up quickly. And when you sell, you will have to pay closing costs as well, including real estate commissions (if applicable). As a renter, you only need to worry about first/last months’ rent. All of these extra funds can go toward buying furniture for your rental property or you can begin to save toward a down payment if home ownership is in your future plans.
Now that you’ve bought the house, everything in it is your responsibility. That includes anything that’s broken. How much would it cost to repair a broken furnace? How much to unclog gutters? That paint seems a little old and tired – what would it cost to have a repaint job? It won’t be apparent at first, but the costs associated with keeping your house in tip-top shape can be pretty heavy on the wallet, not to mention property taxes, which are more onerous when you live in a desirable neighbourhood. As a renter in Toronto, you get to enjoy all of the advantages of living in one of the world’s best cities without these ongoing drawbacks.
No Need for a Mortgage
Rental contracts often only require a couple months’ worth of a deposit and a one-year lease. It is easy to be a rental tenant with no extra financial burden. When you buy a home, however, it’s almost always necessary that you take out a mortgage. Locking yourself into a mortgage restricts your financial flexibility, especially if you choose to buy a home at the top end of your budget.
Are you interested in renting a home, apartment, or condo in Toronto? You can view current listings and search by location, property type, number of bedrooms/bathrooms, and square footage.