Should You Buy Or Rent Property?

person holding house keys

Deciding between buying or renting property can be an essential decision, with consequences that span across your finances, lifestyle and personal goals.

property "for rent" sign

Finding the appropriate decision requires taking into account your circumstances, goals, and needs – this requires much thought before arriving at a final answer.


Considerations is needed when making the decision between purchasing or renting. Some factors to take into account are homeownership costs such as down payments and closing costs as well as monthly mortgage costs.

Homeownership comes with additional taxes and maintenance fees which can significantly alter your monthly budget.

Homeownership offers many advantages over renting, including stability and equity building as well as personalization and cost-effectiveness compared to renting property depending on market conditions and interest rates.

If you are still uncertain which path is the best one for you, consulting a financial advisor or housing specialist may help guide your decision-making. Calculating costs associated with owning and renting can also provide insight into which option may better meet your lifestyle and financial goals in terms of affordability.

Down payment

Before purchasing a home, a down payment must be saved up. This money may come from savings, investments, gift money from close relatives or assistance and grant programs.

Down payments typically consist of paying an initial down payment at closing; it could range anywhere from 3% for properties intended as primary residences to 20% or even higher when investing.

Lenders prefer seeing large down payments because it lowers the risk associated with loaning money to you and decreases fees such as private mortgage insurance (PMI).

The amount you owe depends on the type and condition of the property – HomePath properties, foreclosed homes or short sales have no bearing on how much down payment is necessary.


When purchasing or renting property, there may be various taxes associated with its acquisition or use that must be paid – some one-off fees while other recurring costs must also be taken into consideration.

Tax rates depend on both how much income your property brings in and its maintenance expenses, so keeping records throughout the year to help with filing is critical for filing taxes correctly and on time.

As well, when selling a property you should understand its tax ramifications. When selling, two forms of taxes may apply: capital gains tax and depreciation recapture tax.

Your decision on whether or not to buy or rent property depends on your individual financial goals and current situation, but both options can be beneficial and profitable. When ready, consulting with a financial advisor may help identify an optimal strategy tailored specifically to you as well as provide guidance regarding all associated taxes.


As part of your decision to buy or rent, understanding maintenance costs will allow you to make informed choices regarding where and how to spend your money. This knowledge can enable informed decisions regarding where and how much is best spent or saved upon.

Maintenance costs vary based on region and situation, however, there are general guidelines to help estimate rental property maintenance expenses.

Preventive maintenance (PM) refers to inspecting and fixing equipment or facilities before issues arise, in order to reduce repair backlogs and save both time and money. This approach can drastically cut repair backlogs while saving both time and money in repair backlogs.

Corrective maintenance (CBM) involves repairing or replacing devices when they become damaged, helping reduce downtime while keeping tenants satisfied.

Successful maintenance management can save on costs, increase asset reliability and performance, increase worker safety and decrease unplanned downtime. It also gives you control of your assets to minimise unscheduled outages.