After living in the same Canadian home for many years, you have finally made the decision to look for a new place. Whatever the reasons for your relocation are, the one thing that you may be wondering the most is whether you should sell or rent your old house.
The truth is this is a huge decision which requires careful thought and planning ahead of time. In the fast-paced Canadian real estate market of today, it is important that you gain a better understanding of the benefits, as well as the drawbacks, which come with selling or renting a property in the country.
While your first thought would be to seek advice and guidance from a reliable real estate agent from your community, it is also a good idea to do some research on your own to make an informed decision.
In this post, we compare the benefits and risks of selling vs. renting in Canada.
Selling your home
Pros
The biggest benefits you can get from selling your home in Canada are if you sell the property privately. This means going through the selling process by yourself, without the help of a real estate agent to guide you long.
Let’s say you are considering selling a house in Ontario privately. The greatest benefit you get is the opportunity to save the money you would ordinarily pay as a commission to a real estate representative.
Another benefit you get is greater control throughout the process. You can make all the decisions yourself, including when to sell your home, what to price it at, when to host house showings and how to negotiate with potential buyers.
Cons
The major drawback of selling your property is the sentimental value it has to you and your family, especially if it is your first home. It may be a bit difficult to move out of the house where you made the most wonderful memories with your loved ones.
Another drawback of selling your home comes if you actually decide to do the selling yourself. This is a lengthy, complex process and you must be very well prepared for anything that comes along. That’s why it is recommended that you work with a realtor to do all the work for you and get you the best deal on your house.
Renting your home
Pros
Probably the greatest advantage of renting your Canadian home is that this way you can generate some cash flow. An extra few hundred dollars a month will always come in handy, especially during these uncertain economic times.
However, in case you aren’t able to generate a steady cash flow, there is another excellent financial reason why you should rent out your property and that is the tax deduction. By renting out your home, you can write off a few expenses such as any advertising costs you spend as well as any cleaning and maintenance costs.
In fact, the maintenance costs are best where you can accumulate your deductions quickly, only if you keep track of anything you spend on the property.
Cons
Despite the financial benefits you can gain from renting your Canadian home, there are also a few drawbacks you should know about. These include lack of liquidity, rising insurance premiums, difficult tenants, neighborhood decline, maintenance, and landlord role.
For example, being a landlord is not a job for everyone. You may either feel shy about increasing your rent or being overprotective of the way your tenants treat your property. Also, if you rent, you should know that maintaining your property can be a bit expensive especially if any repairs arise. While you may be able to fix the repairs yourself, you may still lack the time, tools or skills for proper home repair.
Final thoughts
If you have decided to move out of your home in Canada, you have two options on how you can deal with your old property. You can either sell it or rent it out, depending on your needs and preferences.
However, both selling and renting out processes can be quite complex as they come with many benefits and risks you should know about, especially if you find yourself in this situation for the first time. That’s why it is important that you do your research and learn everything you need to know about selling and renting so you can make an informed decision in the end. Use our post as a reference to understand the pros and cons of selling vs. renting in Canada.