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In this presentation we will be exploring the Pros and cos of buying vs renting a home in Canada.

Also included are ways to
assess rates ant payment plans

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-Usually can have bad credit and still be approved for rent
-Maintenance
-No worries if housing value depreciates

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-rent can be raised at any time
-not building equity
-renovation restrictions

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Pros
-owning an asset, building equity

-can benefit from housing value increases (housing value)

-Creative control (decorations, renovations)

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-Costs such as, maintenance,taxes, insurance

-if market depreciates equity also goes down

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What You Need To Know About Renting Vs. Buying A House | Better | NBC News

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https://globalnews.ca/news/2563940/should-you-rent-or-buy-this-real-estate-calculator-will-help-you-decide/

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To rent or buy? That is a question Canadians across the country face as they weigh the pros and cons of making the leap into home ownership.

Conventional wisdom says to buy property. We're not making any more land, and with the Bank of Canada keeping interest rates low and mortgage rates falling it might seem like a good time to purchase that first property.

Canadians should also consider that housing markets are regional. Outside of the red-hot real estate markets of Vancouver and Toronto, average home prices across Canada were actually down 0.3 per cent in January, to $286,911, according to the Canadian Real Estate Association.
Should I rent or buy? Try Global's real-estate calculator to help you decide. Click here to view data "
But for fist-time homebuyers there are many more questions that need to be asked, says Moshe Milevsky, an associate professor at the Schulich School of Business at York University.

From looking at the "hidden costs" of buying property to long-term employment plans, Milevsky says there are four questions to consider when deciding to rent or buy
1.Where are you going to be in five years?
Are you planning to keep the job you have now? Are you heading overseas?

Milevsky says before sinking hundreds of thousands of dollars, or millions, into a property think about it as a five year plan.
READ MORE: Ottawa tightens mortgage rules to cool off red-hot Vancouver, Toronto
"[Is a person] going to be in Toronto and Vancouver and is this where they are going to live?" he said. "Are they very transient? Are they just finishing school, and not sure what their career looks like yet?"

If you're not sure where your career is headed, you should consider renting, Milevsky said
2. How much do you have saved for the down payment?
Under the new changes that came into effect on Feb. 15, 2016, homebuyers will be required to put a 10 per cent down payment on mortgages over $500,000. The five per cent rule remains the same for the portion up to $500,000.
READ MORE: $2.4M 'knockdown' sums up Vancouver housing market
But Milevsky strongly recommends homebuyers go beyond the five or 10 per cent

"I really think it's important to have that 15 to 20 per cent down payment," he said. "It's a cushion in the event something goes wrong. It's a cushion in the event you need to borrow against the house for liquidity reasons."

"The last thing I want to hear is someone say to me 'I got a bank that will lend me 95 per cent of the value of the house and all I need to put down is five per cent." He added. "It's not smart."

3. What about the "hidden costs" of home ownership?

If the roof needs to be fixed or the furnace breaks down you'll be on the hook for the costs of maintaining a house.

"Things break down," said Milevsky. "You can't call the landlord and say 'hey buddy, fix it.' That's one of the lovely things about renting, if something isn't working, call the landlord."
READ MORE: The Toronto condo bust that wasn't
First-time buyers looking at a condo should also be aware of monthly fees. In 2015, an average 1,000 sq. ft. condo in Toronto came with $590 in monthly maintenance fees, up from $440 in 2005, according to research from Condos.ca.

"It's not just annoying, it's like a second mortgage," said Milevsky. "If your condo association votes for a special assessment your fees can also go up."

While maintenance fees start off lower in new buildings, they rise quickly in older buildings.
4. Do you have money saved for closing costs?
While first-time buyers don't have to pay certain fees there are a number of other closing costs that need to be taken into account.

Land transfer taxes, lawyer fees, real estate agent costs and appraisal and home inspection fees all need to factored in says Milevsky.

"People should know a little bit more about what the cost of buying and selling a property is," he said.
(Real-estate calculator methodology) To calculate your monthly rent, we assume your rent will increase with inflation (2 per cent per year) and that you purchase renter's insurance (at 1.32 per cent your monthly rent). To calculate the monthly costs of owning a home, we determine your monthly mortgage payment at the interest rate you specify, assuming you will pay the mortgage off fully in 25 years. We then add costs for property tax (1.2 per cent the value of your home each year), homeowner's insurance (0.46 per cent the value of your home each year), maintenance costs (1 per cent the value of your home each year) and utility costs ($300 a month). These costs are assumed to rise either with inflation (2 per cent per year) or the value of your home (4 per cent per year). If your down payment is below 20 per cent a mortgage insurance premium is added to your mortgage at CMHC proscribed rates. We also add a one-time fixed cost of your down payment, as well as the closing costs associated with buying and selling the home (at 4 per cent and 8 per cent the value of your home respectively). The net gain from selling your home is subtracted from the total costs. We apply a net present value calculation to each of these values to get the cost in today's dollars. Put simply, money earned today is worth more than money earned in the future because of its earning potential. This acts to decrease rental costs, as those are spread out over many years. Buying a house, on the other hand, involves large upfront costs, while the proceeds are put off years into the future, and are thus worth less in today's dollar. This acts to increase home ownership costs relative to renting.

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Should you rent or buy? This real estate calculator will help you decide

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To rent or buy? That is a question Canadians across the country face as they weigh the pros and cons of making the leap into home ownership. Conventional wisdom says to buy property. We're not making any more land, and with the Bank of Canada keeping interest rates low and mortgage rates falling it might seem like a good time to purchase that first property.

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Deciding to embark on a new life in Canada is the easy part. Deciding whether you should buy or rent your first Canadian home is another matter.
Once you have decided to move to Canada you will soon be faced with many other smaller, but no less important decisions. One of the most pressing is regarding your new home - should you rent, at least for a little while, or take the leap and buy a property?

There is no easy answer to this question, and what is good for one family may not be the best solution for another. All you can do is weigh up the options, and implications, and make an informed decision.

We are no longer in a 'seller's market' and are entering a much more balanced environment.

Buying a Property

Canada has a large and varied property market, but in general, right now the market is softening and we are a seeing a drop in the number of sales. Furthermore, the average price of a home is steady, without the sharp increases in value seen over the past couple of years. This means we are no longer in a 'seller's market' and are entering a much more balanced environment. This is great news for anyone who takes the 'buy' route upon landing in Canada. Not only are you taking advantage of positive market forces, but you will be benefitting from the traditional arguments in favour of buying - the security home-ownership brings, and the fact that you can start to build equity as soon as you arrive in Canada.

The benefits of renting

One of the main benefits of renting is the flexibility it affords. By entering into a fixed term lease you can ensure that the particular corner of Canada you decided to call home is actually right for you. If for any reason - such as a work posting - you want to re-evaluate your location, you can move on without significant cost or time spent listing a property for sale. The structure of rental agreements in Canada is also worth noting. Typically, a term runs for 12 months and then converts to a month-by-month agreement, so at any time after the first year you can simply provide one month's notice and then move on to your next location.

One of the main benefits of renting is the flexibility it affords.

Renting would also provide time to assess the current market conditions, if the aforementioned softening trend continues we could well see prices dropping. By biding your time and renting you could actually save money in the long run as inflated property prices (particularly in cities like Toronto and Vancouver) start to drop.

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Renting vs. buying in Canada - Canada Property Guide

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Deciding to embark on a new life in Canada is the easy part. Deciding whether you should buy or rent your first Canadian home is another matter. Once you have decided to move to Canada you will soon be faced with many other smaller, but no less important decisions.