Many Montreal baby boomers feel their family home is too large and that it may be time to downsize. This leaves them wondering if they should rent or buy when downsizing in Montreal.
Renting
Some feel that is that renting is a waste of money, as the monthly rent is not recoupable. This may not be of importance to baby boomers; renting provides a shelter to those concerned with buying in a hot real estate seller’s market.
Renting also offers:
- the benefit of predictable monthly expenses
- flexibility if situations change
- almost no burden of repairs
If amenities are tempting, renting a condo is a possible. Staying in the know about Quebec rental laws will protect you from shocking rent increase or landlord notices. (You can check out our article on Quebec Rental Laws here.)
Owning
Owning your own home, on the other hand, brings a sense of pride as property values grow. A homeowner does not answer to a landlord and can make any renovations they desire. The condo-owner does not need to fret about cutting the grass or organizing costly repairs. They can own their home and these issues are managed within the syndicate and possibly by a management company. A condo owner in a building of 25 condos will be responsible for roughly 4% of the building’s expenses. This should be less than the home maintenance cost of the home they are moving from. Another factor to consider is undivided condos vs. divided condos. (You can check out our article on that here.)
If you are planning on living somewhere for less than five years, renting may make more sense. Transaction costs (such as commission, land transfer tax and mortgage closing costs) may eat into your property’s value growth.
If buying or renting are both options, consider both properties for rent and sale. Once you find something suitable you can evaluate the pros and cons. It is a lifestyle choice after all.
If you are just starting to think about downsizing, you may feel somewhat overwhelmed. Check out our article on getting started by clicking here.
Every situation is different. If you are thinking it is time to think about moving to a smaller home, it all starts with a conversation with a professional who has your best interest at heart.
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