When people refer to Manitoba housing market the reality is that they are referring to the Winnipeg housing market considering that 70% of the residents of the province live there and it ends up skewing the results. Winnipeg is still relatively affordable in comparison to most other housing markets in Canada, which are quickly becoming difficult for people to buy into. That does leave the question that in Manitoba, an affordable place to buy and rent, what do you do?
You are Throwing Your Money Away
There is the old saying that when you rent you are throwing your money away. You have probably heard this before, or the similar why pay the landlord mortgage when you can pay your own?" The thing is that you are not throwing your money away, you are using it to procure a place to live where you do not have to be responsible for breakdowns property tax, or maintenance. For some people, the renting lifestyle is superior to home ownership, and you can come out of a life of renting with a significant net worth.
For a vast majority of homeowners, especially first-time homeowners, they are not buying their home outright but instead are getting a mortgage. In this case, you are, essentially, renting money to pay for an asset (your home) that will hopefully appreciate in value. You are also only paying yourself which is another common misconception. Some of your money is going back to paying for the original mortgage that covered the cost of your home, but you are also paying down your interest each month, and you always have to pay your interest first.
Reasons to Rent
There are many reasons to rent instead of buy. One is the flexibility that you have when you rent. If you buy a home, then there will be significant costs when buying and selling your home. When you rent, after you have lived somewhere for the set lease period (often one year, sometimes less if prior negotiated) then you can choose to rent month to month. This enables you to move for convenience, work, personal preference, or to upgrade to a larger rental apartment or home. You could, theoretically, move every year with moving costs being the only financial hit. Renting also allows you to budget with much more certainty, as you do not have to worry about replacing broken air conditioning units or performing any kind of renovations.
Budgets Enable Savings
Having a set budget each month by renting will enable most people to be able to set money aside to be invested. Mortgage payments and all other monthly fees for homeowners are higher than what most people pay in rent for an identical property. Renters have the freedom to invest that money and build a comprehensive portfolio that will provide them with gains approximate to those of their home owning counterparts.
Consider Renting with Progressive Real Estate
Homeownership is not the be all and end all on the path of life. There are alternatives and renting offers stability, flexibility, and the opportunity to save. You have to be vigilant with your budget, but you can manage to save for your future and get out ahead if you rent. If you are looking for houses for rent in Winnipeg or condo rentals in Winnipeg, contact Progressive Real Estate today!