Everyone deserves a place to call home, and it's essential to find an option that aligns perfectly with your lifestyle and financial goals. So, let's dive right in and explore the benefits and considerations of each choice: to rent or to own!
Renting has some fantastic perks, especially when you're starting on your homeownership journey. It requires lower upfront costs, making it an ideal option for those looking to save and plan for the future.
Currently, rental prices in Nanaimo are as follows: 1 bed - $1622, 2 bed- $1980, 3-bed apartment $2450.
Home rentals aren’t very abundant in Nanaimo right now and for a 2-3 bed home around you’re looking at $2500-$3000/month.
Plus side to renting- no maintenance costs! You can leave those worries to the landlord while you focus on creating memories in your cozy space.
You also have more flexibility when renting as you can choose from various locations and easily relocate if you decide to explore different neighbourhoods.
With a fixed rent amount, you know precisely what you'll be paying each month. Besides that, you will only be paying your utilities. (city + gas and electric). That is of course unless there is an unpredictable rent increase. You might also face the possibility of moving if the owner decides to sell or renovate the property.
Another couple of downsides: Renting may mean limited customization options, as most landlords prefer to maintain their home's design. Additionally, if you’re a pet owner it can sometimes feel impossible to find a rental that will allow pets, especially large dogs.
Now, let's talk about the pride and joy of homeownership!
Owning your own home comes with that fantastic feeling of truly making it yours. Design, renovate, and create the perfect sanctuary that matches your unique style and preferences.
Not to mention - building equity - it's like planting seeds for your future! With the annual real estate appreciation rate in Canada for the last 15 years being around 6.11%, each monthly payment becomes an investment in your home, increasing your wealth over time.
But homeownership does come with some considerations. Owning a home requires a more substantial upfront investment for the down payment. Your down payment will be a minimum of 5% and even 20% if you’re purchasing a home over $1million. Besides your monthly mortgage payment, other costs include utilities, property taxes and Insurance. You should also factor in a home maintenance budget which should be 1% of your home's total value every year. And yes, maintenance - it's now on your to-do list. You'll be the one handling those DIY projects and repairs or calling in the experts.
Also, owning means less flexibility in moving. That’s why choosing your location is so important and my entire reason for building this channel. Think of it as putting down roots and building memories in one place. If and when you decide to move, keep in mind that the housing market can fluctuate, and home values may be affected during downturns. There’s also a larger cost to moving when you own vs when you rent, as you’ll need to factor in the home selling process and costs like preparing to list, realtor fees, lawyers, and bank penalties if you pay out your mortgage early.
In the end, it's about finding the best fit for your current situation and where you see yourself in the next decade. And I’m always happy to help you see the bigger picture and make a choice that aligns with your dreams and aspirations of moving to Nanaimo on Vancouver Island.
