This is a common dilemma faced by those searching for homes in the greater Toronto area: Is it smarter to buy or rent? The key advantage of buying a home, with the help of a certified and professional REALTOR®, is that you can reasonably expect the equity in your home (the value of the home measured against the remaining unpaid mortgage amount) to increase over time as your mortgage is paid down.
In fact, according to the Toronto Real Estate Board (TREB), Toronto home prices have been experiencing a steady climb since 2009 and have continued to increase in the past year. In its September 2013 Market Watch, TREB reported an increase of 6.5 per cent (year-over-year) for the average price of homes in the GTA. Feel Free to browse through this year's Market Watch Archive:
|Market Watch Aug 2013||Market Watch July 2013||Market Watch June 2013|
|Market Watch May 2013||Market Watch April 2013||Market Watch March 2013|
|Market Watch Feb 2013||Market Watch Jan 2013|
The graph below, also courtesy of TREB, shows that the appreciation in 2011-13 wasn’t just a statistical blip – home prices in the GTA have been climbing steadily almost every year since 1995.
By contrast, the person who chooses to rent over the same amount of time is left with no property investment, but may have enjoyed lower living expenses and the financial means to invest in other opportunities. When comparing owning to renting, you have to add up all of the figures, including the cost of your home, the size of your down payment, utilities, immediate repairs, interest rates and insurance. Then, compare those figures with the amount of money you are currently spending on rent.
An experienced and knowledgeable GTA real estate sales representative will be able to help you assess your current situation and help you decide whether home ownership is the right option. CLICK HERE to get in touch with the top brokers and sales representatives at Living Realty Inc., who can answer your questions personally and provide valuable information.