One of the biggest logistical challenges that can come with getting divorced is moving.
Regardless of which selling path you’ve decided to take, i.e. a joint sale or partner buyout, you’ll need to start thinking about where you will live next – and, more specifically, whether you wish to rent or buy. If you’re in the middle of a difficult life transition such as a divorce, this might be the last thing you want to think about, however, it is an important decision.
As a trusted real estate agent, I’m here to help.
In this post, we’ll weigh the pros and cons of buying and renting after a divorce to help you get a better sense of which path might work best for you.
If you and your former spouse wish to sell the home together, you’ll need to find a real estate agent who understands these unique types of transactions. Click here to learn more.
The Scoop on Renting
Ok, let’s start with renting.
Speaking generally, renting gives you far more flexibility than buying. If you’re not sure what the next chapter of your life will look like, where you want to live, or what you even want from a home, renting might be the way to go.
One of the main disadvantages of renting (rather than buying), is that you’re not keeping any equity for yourself. You may have heard the phrase “renters pay their landlord’s mortgage” and there’s definitely some truth to this.
Divorce isn’t always the easiest subject to talk about and it can be hard to find helpful advice when you need it. That’s why I’ve put together a few handy blog posts to help you navigate the topic.
- How to Decide Who Gets the Home After a Divorce
- Can You Buy Out Your Partner During a Divorce?
- Everything You Need to Know About Disclosures & Divorce
New Trends in the Rental Market
While the larger pros and cons of renting still apply, it’s important to mention that Etobicoke’s (and the entire Greater Toronto Area for that matter) rental landscape has evolved noticeably over the past couple of years.
As higher interest rates have made it more challenging for some home buyers to enter the market, there’s been an uptick in the need for rental housing around town. As a result, it’s gotten more competitive compared to years past. If it’s been some time since you last rented, you may want to prepare yourself for these new dynamics.
Now, all that being said, there’s still lots of help available for renters. For instance, a local real estate agent can help you find a great place to rent while you sort out what your long-term wants and needs are.
When is Buying the Right Move?
Alright, let’s look at the considerations of buying a home after your divorce.
In a nutshell, buying brings on a lot more responsibilities when compared to renting, but there are also far more financial advantages. Unlike renting, buying a home allows you to grow your personal wealth as you pay off your mortgage. Then, when you wish to move in the future, you’ll have a high-value asset that you can sell.
With these perks in mind, buying does have a larger barrier to entry than renting. One of the biggest hurdles is the upfront costs involved in a home purchase, including the down payment, closing costs, insurance, maintenance, and surprise expenses.
Given the size of the initial investment, you won’t want to buy unless you’re absolutely ready. As a general rule, if you’re planning to stay put for three years or more, buying makes sense.
Need more tips on navigating the real estate market after a major life change? You might find some of these blogs helpful.
Your Compassionate Guide
In any real estate journey, your best asset is an experienced and knowledgeable agent. That’s where I come in.
For more than two decades I’ve helped my clients make informed decisions and accomplish their real estate goals. Regardless of your situation or the type of property that you’re looking for, I can guide you through a successful transition, all while providing compassionate and empathetic advice and insights.