See How Easily You Can Decide Between Buying vs Renting a Place

“Affluent young people living and working in downtown Toronto have increased by 16% since 2006, according to a TD Bank report– a trend that is the reverse of baby boomers who fled the city for the suburbs.” — Local newspaper.

Should I buy or rent

Should I buy or rent? I love to study real estate trends and to learn as much as I can about property. I personally own a rental property and currently rent a place. I’m always looking to expand my knowledge on this field. I might be purchasing another rental property in the near future. I want to be as informed as possible. Rental property management software helps me keep up with the finances of renting. Buying a place isn’t like buying a case of beer. Yet we put in more thought into the case of beer sometimes.

Do you have any questions about buying vs renting a home?

This article is going to pull together my best posts on the topic to help you make the most informed decision on how you spend hundreds of thousands of dollars over your lifetime.

Bookmark this page.

Let’s not waste any more time folks!

Where should you live after college?

There are many options for your living situation after college. Everything will totally depend on your financial situation and where you can land a job (assuming you look for a “real job”). Most of us will go where the money is.

The options are fairly simple:

  1. If you have no money and insane amounts of debt, you need to beg your parents to let your sorry self move back in.
  2. If you have job prospects, you can choose from a variety of options noted in the aforementioned article.

What if you want to buy a place? I wrote about what you need in order to buy a home after college. It won’t be easy, but it’s possible for you to get your own place in your early-20s. The goal at this point should be to figure out what you want to do next. Will you travel? Will you look for more credentials? Will you take the first job that comes your way?

What if you’re still at home in your mid-20s?

It’s fine to stay with your parents while you save up or try to figure out the rest of your life. It’s important to take some time to tackle debt and build some savings.

Eventually, you need to grow up. You should get out of your parents’ place in your mid-20s. It’s not cool. There’s so much to do in this world that it’s an absolute shame to stay with your parents and miss out on what’s out there.

What are you going to tell your dates? My roommates are sleeping?

What are you going to do when you want some peace or to relax? Tell your parents to leave their own home?

If you’re at home and you’e pushing 30, it’s time for a change. Grab life by the balls and do something. Don’t wait for the universe to do you any favors.

Should you buy or rent a place when you’re making good money?

Should I buy or rent

You would figure that I covered everything humanly possible with my 2,000 + word post on buying vs renting. That post went live many years ago. I thought it was going to be the definitive piece on real estate. I was wrong. I’ve gone into buying a house vs renting on numerous occasions since.

Once you start making good — and hopefully this happens to everyone reading this, you’re going to be debating the idea of buying a place. Instead of giving you a yes or no answer, I wanted to share some tools that will help you make up your own mind.

What tools can help you when deciding to buy or rent?

This is the best time to be alive. There are literally tools for everything. You can figure anything out for free without even getting out of bed. There are two key tools that should help you decide if you should be buying or renting.

Credit score.

Why should you care about your credit score in your 20s?

  • Your credit score affects your pocket.
  • Important when finding a place to rent because many landlords will ask for this.
  • Crucial when trying to get a home mortgage.
  • Most employers ask for your credit score.
  • Simply put: money! You can save a few bucks on coffee or you can save INSANE amounts of money by building up your credit score.

Now that you know why your credit score is important, how do you even figure out what your credit score is? The answer is below.

A cool way to find out your credit score right now is…

Credit Sesame, a tool where you can check your monthly credit score for free.

Why should you sign up with Credit Sesame? You’ll know where your stand with your credit score. If you want to apply for a home mortgage or even finance a car in the near future, you’re going to want to know what your credit is like. You don’t want to be hit with an unpleasant surprise when you find out your credit score sucks and that dream home is nothing but a dream.

They email you updates to your credit score. Whenever your score changes you get notified via email in case you totally forget about your credit score while having a life (you better have a life!).

How can you improve your credit score so that you can find a place to live?

  • Pay down debt.
  • Fix errors on your credit report.
  • Make your payments on time- always!
  • Repeat.

Fixing your credit score is sort of like dealing with a hangover. You screwed yourself over. Now you have to get out of this mess. You have nobody to blame but yourself. The good news is that the damage is by no means permanent.

Is there anything wrong with renting?

Hopefully you checked out your credit score and ran the numbers from earlier. I’ve stressed many times that renting can easily trump owning a place. Before I even move forward another step, I need to remind you that paying for a roof over your head is not throwing money away. Throwing money away is when you have one shot too many on a Friday night.

What are some of the main benefits to renting over owning a home?

  • Increased flexibility. Letting your lease expire is a simple process. You ever try selling a piece of property? I thought about it last year but I wasn’t impressed with the offers that I received. You can move around when you rent. You can get up and go. The same isn’t true when you own.
  • You can rent a nicer place. A rarely thought about fact is the idea that when you rent, you can get a nicer place that you could usually afford to buy. Just saying.
  • You don’t worry about anything. Anything that breaks on its own is not your problem. You don’t have to stress about property taxes or new windows. You just pay your rent and that’s all.

I’ve done both. I’ve lived in a condo that I own. I also currently rent a place out. Renting comes with much less stress and hassle. Don’t worry about any social stigmas. Your broke friends can continue being broke.

Should you buy vs rent on emotion?

Absolutely not.

You use your gut instinct on Friday nights or when meeting someone new. You don’t use your gut before agreeing to buy something worth hundreds of thousands of dollars. While it’s totally common to fall in love with that house or to want to move ASAP, you really should slow this process down. You don’t want to feel buyer’s remorse the second that you walk into your new place.

Before you leave…

As we part ways for today, I want you to always remember that you don’t have to buy a home just because interest rates are low or because you’re at that age. Do what’s best for you. It’s your life. If you want to travel the world first, then do so. If you want to save up more money, then keep on saving. If you’re happy with the place that you’re renting, then stay there.


  1. says

    I lived with my parents until I got married at 28. But I’m probably the exception that proved the rule, because I pretty much had no life back then. :)

    While there are definite financial decisions that going into buying a home, I think that the primary decision is an emotional one. For me, personal soverignty is a big deciding factor. If I want to put a sattelite dish on the roof, convert part of the yard into a garden, or change my own oil, I don’t want someone telling me no because it doesn’t mesh with their sense of aesthetics.

    We are back to renting now pretty much against our will, but the HOA on that place was more restrictive than the landlord is for this place!

    • says

      That’s a cool story Edward. 28 seems like a good age to get married at. I never thought of that angle for buying instead of renting. That’s interesting. I wonder how many other folks feel this way.

    • says

      That’s odd. I worked like an animal for 5 years from 17 on so that I could graduate debt-free and make some investments. It was tough but well worth it. I used to take the bus an hour each way and live off caffeine lol. What kept me going? Vodka shots on the weekends!

      For $125,000, you will NOT get anything in Toronto. Literally nothing. That’s amazing that you get a nice place and live in the sun. Do you think Houston could handle me if I moved over?

    • says

      Crystal I’m equally jealous. I’m from Toronto as well but haven’t graduated school. I know I will be living with parents for a while, stocking up money and paying off my student loans. I wish I could buy a place in Toronto for $125,000..bungalows go for about 400k to 500k. It’s nuts.

      • says

        Hey Lauren! So awesome to have a fellow Torontonian on here!

        Housing prices are insane at the moment. I could never afford my parent’s place lol.

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