When I have friends & clients looking for a property to rent and plan to stay in Ottawa for several years I usually ask if they have looked into buying. A lot of people that are used to renting haven’t considered buying as a feasible option for themselves.

Buying can actually be a lot more attainable and practical than you think.

Let me preface this post in saying -- there are many situations in which renting is both necessary and beneficial, and I love to help clients find their new homes whether it is a rental property or the purchase of a home. Some people also love to flirt with styles of homes and neighbourhoods before committing, and that is valuable as well!

The rental market in Ottawa is currently booming. This is fantastic for investors, and not great news for renters. The average price for a 2 bedroom rental has been on a steady increase for the past few years.

This summer I consulted on an article for the Ottawa Citizen that gets into the increasingly competitive rental market. It’s something I’ve been noticing for a while. The difficulty of finding an appropriate rental has prompted many of my own friends, clients, and acquaintance into considering buying more seriously.

In Ottawa we are seeing rental prices approaching the monthly carrying costs of some purchases (= mortgage payments, property taxes, property insurance, utilities and/or condo fees, and a home maintenance reserve fund), so the thought of purchasing is on the minds of many. One of the primary benefits to renting is the ability to have breathing room financially, but once that benefit begins to fade away it’s worth re-evaluating your situation.

Some questions to ask yourself if you’re considering a purchase:

Am I staying in Ottawa over the next few years?

If Ottawa is a 1 year plan, rent.

Do I have a down payment+closing costs saved?

Depending on your situation/lender your down payment can be as low as 5%. Have an additional budget for closing costs of approx. 1.5% of purchase price.

Can I take care of a property myself?

Being a home owner requires time and effort! It’s important to consider whether a property is suited for your lifestyle.

Pros to owning:

Full control of modifications/renovations
No risk of being relocated by landlord
Ability to rent out property
Build equity
Property appreciation
Tangible asset - ability to force appreciation with proper updates/renovations

Pros to renting:

Mobile lifestyle
Lower upfront cost
Lower maintenance responsibilities
Live in neighbourhoods that are less affordable to buy in
Ability to save liquid cash quicker (in some scenarios!)
Relatively low average annual rent increase guideline

Every situation is different but if you’re someone looking to upgrade your rental or think you’re ready to transition out of the rental market and into a purchase, feel free to get in touch!

From Renting to Owning?