RENTING OR BUYING YOUR CONDO?

The kids are gone, you're nearing retirement, and you want to sell the family home and move into a prestigious condo. So far, so good.

But then, will you decide to rent or buy your condo?

Buying property has long been considered the most advantageous and secure financial choice. In 2021, the situation has changed. Buying property today is not the same as it was 30 years ago, when you first became a homeowner.

There are many advantages to renting your condominium rather than buying it.

BACKGROUND

Let's start by exploring the current buying environment. The real estate market in Quebec is no longer the same as it was in the 80s and 90s, and becoming a homeowner has become more expensive. It's mainly the costs associated with home ownership that have gone up. Jean-Sébastien Pilotte, author and blogger of Jeune Retraité explains:

"A house (or condo) in a market like Montreal, with the price of real estate, property taxes, municipal taxes, maintenance costs, start-up costs, notary, inspection... People don't calculate, but all these expenses burn up the return on a house."

What's more, selling a condo isn't easy. Condo towers are exploding all over Montreal and Laval, and most people prefer to buy new. When you die, your children will be left with a not-so-new condo and few potential buyers. On top of all the related costs that will have been spent to buy your condo, you'll potentially have to sell it at a loss. Not very attractive!

Finally, buying property is often an emotional decision. Our society idealizes home ownership. For the same reasons you've realized your dream of owning a home for your family, you'll no doubt want to own your new condo. However, it's wise to be rational when it comes to buying a property. It's up to each individual to make a frank assessment of his or her financial situation and needs. Why is home ownership important to me? What do the figures say?

Buying for the sake of buying makes no sense in 2021.

ADVANTAGES

The advantages of renting rather than buying are mainly centered on the quality of life associated with being a tenant rather than an owner. If you've owned a single-family home for any length of time, you know what we're talking about! All costs and responsibilities fall to the owner. It's a full-time job!

HERE ARE THE ADVANTAGES OF RENTING:

-Less responsibility: no more worries about plumbing, electricity or repairs of any kind. One phone call to your building management and you're done!

-Peace of mind: enjoy a lifestyle of freedom and flexibility. If for any reason you wish to leave your condo, simply surrender your lease and go!

-More money in your pocket : less spending on accommodation equals more daily indulgences! Outings, trips, gifts - feel free to spend as you please.

-More money to leave to your children: since you'll be saving money by renting out your prestigious condo, you'll be able to leave a larger sum of money to your children, and why not to your grandchildren!

Can you visualize your new reality? A life of freedom and carefree pleasure: no house, no children, savings: life is beautiful!

In short, buying property is often not a rational decision. We idealize home ownership as if it will make us happier. To find out which option is best for you, the best approach is to consult a financial advisor and look at the facts. By doing the math, most of you will discover that renting is far more advantageous than buying.

By renting a prestigious condo at Eclipse, you can live the life of luxury and freedom you've always dreamed of, without the hassle of home ownership. What are you waiting for?

See this article in the Journal de Montréal!