Renting is a valid option in today’s housing market

It is well known that homeownership is the dream of most Canadians, both home grown and immigrants. Nowadays, however, with home and condominium prices the way they are, that dream can be difficult to transform into reality. Certainly, people are finding ways to save for down payments, whether it be using part of their RRSPs, qualifying for government programs, turning to parents or grandparents for help, buying jointly with friends or relatives… the list goes on. If none of those is an option, the logical solution is to rent before buying, and currently, there is more demand for rental accommodations than there are options in the GTA.

Low-maintenance living

Today’s condominium investors are helping to lessen this demand-exceeding supply situation. Investors realize that tenants enjoy many benefits of living in a condominium. Convenient transit-friendly locations, beautiful amenities, retail/commercial venues on the ground floor, and in general, low-maintenance living… there are plenty of condo lifestyle perks.

There is, however, a certain stigma to renting, which is disheartening – and unnecessary. Remember that most of us who own homes rented before we could afford to buy. Plus, there are many perks to renting, beginning with not having to save a large down payment. Typically, a security deposit of a month’s rent is required. Then consider the fact that when you rent in a condominium, you have all those wonderful amenities at your doorstep. Your insurance costs are far lower, and you don’t have to pay property taxes or worry about repairs.

In addition, potential renters need to know that recently, Prime Minister Justin Trudeau announced that in the latest budget, his government introduced a new “renters’ bill of rights” to protect tenants in Canada. Included in this legislation will be a national standard lease agreement, the ability for tenants to negotiate their rents, a $15-million fund for provincial legal aid organizations that help tenants fight landlord abuse such as unfairly rising rent payments, plus a change in federal rules so that making rental payments on time will be considered in renters’ credit scores to help them purchase their first home. The latter will also diminish the stigma of renting versus owning. This is great news, especially for those who may be hesitating.

Priceless benefits

Around the world, there are numerous major cities that are predominantly rental when it comes to housing, such as New York, Paris and Hong Kong. Toronto is heading in that direction, and owners are discovering that tenants can be just as responsible and pleasant as other owners. Families who rent understand that they can provide a wholesome, healthy lifestyle for their children in a condominium. Some buildings even feature indoor and outdoor children’s play areas.

Your financial situation will undoubtedly determine whether you can afford to buy a house or condo, or need to rent instead. When renting translates to low maintenance, convenience and resort-style living in a condominium, keep in mind that the benefits are priceless.