Buying vs. Renting a Home: Which One is the Best Choice for you?

Home School Home Buying Tips

When you’re at the point where you’re feeling ready to take the next step and move into a new home, you have some important things to consider, especially when deciding whether you should buy a home or rent one.

Your lifestyle and needs are unique and will play a big part in what you end up deciding. However, the logistical aspects of buying or renting a home can be equally as important! There are many great reasons to buy a home, making it a favorable option for most.

We’ve done the legwork and made the comparisons, so you don’t have to. Read on to learn more!

Buying a Home

Let’s dive into some of the reasons why buying a home is a great choice.

A Sound Investment

If you choose to buy a home you can afford, the payoff can be incredible. That’s because unlike renting a home, you can build equity as you make your mortgage payments each month.

Equity is the difference between the value of the home and your outstanding mortgage. So, assuming your home continues to increase in value, the longer you stay in your home (and the more payments you make), the more equity you will have.

A First Step

As you build up equity in your current home and your comfort level in being a homeowner, it may be easier to move up to another house in the future. Making your first home purchase is like taking a big first step.

Provides Satisfaction and Security

As a homeowner, you can decorate and renovate your home to improve its value. In addition, owning a home gives you the pride of ownership and the security of having a place to stay as long as you like.

You and your family are also more likely to feel stronger ties to the community.

Calgary is an Affordable City

You might be surprised to know that Calgary is one of the most affordable major cities to buy real estate in today. Not only that, you can purchase and still enjoy a fantastic return on investment.

On average, homes in the Calgary market appreciated by 10% in the last year of 2021. Unfortunately, 2022 is on pace to see higher price increases which means it’s best to purchase as soon as possible!

Renting a Home

When you decide to rent a home, you can miss out on the great benefits being a homeowner provides. Here are some specific reasons why it might not be the ideal choice:

  • Your landlord can increase rent at any time

  • You cannot build equity

  • There are no tax benefits

  • You often cannot make permanent changes to the home

  • Many times you cannot have pets or are limited

Buying vs. Renting: Cost Comparison

As you pay down interest on your property and appreciation continues, the numbers only get better for the buying option and unfortunately, worse for the renters based on past performances. Check out this five-year spotlight on equity accumulation:




$500,000 Home


$500,000 @ 4%


Initial Outlay



Appreciation of 2%/yr



Interest Over Five Years



Payment of Principal



Property Taxes






Current Equity



Next Steps

At the end of the day, the decision to rent or buy a home is entirely yours to make. Consider all of the above factors and do what’s right at the right time for you.

If you feel like buying a home sounds like the best next step, get in touch with our article contributor Todd Broadbent or apply now for a mortgage!

Todd Broadbent



Phone: 403-558-3945

Text: 403-830-0252