I had two great clients recently. Both are University of Toronto Medical school students and both had energetic personalities ready to burst into the exciting Toronto Real Estate market. One of their questions to me was "Should we Buy or Rent?". I told them: it depends. If you want to build equity and future wealth, buying is the way to go. If you can't afford to buy right now and would like to save up a little more, (i.e. they are students) or you don't know if you will be in Toronto in 6 months to a year from now, then renting MIGHT be the better option. If you like to paint and shape your space to make it your own, buying is usually the only way to ensure that lifestyle.

In terms of the Toronto Rental market right now you are usually paying more per month to Rent than if you bought your own comparable place and had your monthly mortgage payments, tax payments and maintenance fees combined. The latter is usually always less overall in today's Toronto Real Estate Market, giving you more saving and or spending power per month than if you were renting.

One thing is for sure: we all need a roof over our head. In most people's case they end up having to pay either Rent for this roof or a Mortgage payment, unless of course you have a rich family that can offer you FREE or Reduced Rent. The point is, we ALL have to pay for the shelter that protects us all - our home.

Real Estate has always been considered an amazing Long-Term Investment. The real question you need to ask yourself is: "Do I really want to pay RENT and pay down somebody else's mortgage for the rest of my life?"

Generally, a home makes financial sense if you are going to live in it for at least three, four, or preferably five years. When you buy you need to take into consideration the costs involved in buying and selling a home, from appraisal fees and home inspection to real estate commissions, all must be taken into consideration.

When people lose money in the real estate market it is usually because they did not own it long enough, they sold to quickly in a plateau or down market. This usually means within the first 2 years of the purchase. However, also keep in mind; the longer you own your property, history has shown us, you can be sure it will have increased in value when you come to sell.

Real estate has proven to be one of the most stable long-term investments there is. It is your guarantee of retirement security. Overall, it is far better to own your own home than to pay to live in somebody else's, not only for the pride of ownership but because it is your best long-term hedge against inflation. With rental rates increasing constantly, there is no guarantee you will be able to afford them as the years go by.

Check out this awesome Rent vs. Buy calculator link. It allows you to punch in your financial numbers to see what option is best for you.

Good luck and we will help you buy (OR rent) your next prized piece of Toronto real estate when you need us!