Should You Buy, Rent, or Stay Put? A Real Estate Agent’s Perspective
If you’re in your final year of your bachelor’s degree, have no current income, and are considering moving out, the big question is: should you buy, rent, or stay put? As a real estate professional, here’s my analysis of your situation and what I would advise.
🚫 Buying a Condo Right Now – Not the Best Move Without Income
Right now, the Toronto condo market is experiencing an oversupply—inventory is at an all-time high, and sales are at an all-time low. While this might sound like a buying opportunity, your biggest challenge is qualifying for a mortgage without an income.
- Lenders require stable income before approving a mortgage. Without it, you’re unlikely to qualify.
- Developers are already offering discounts and incentives to sell condos, and we may see even better deals later in the year.
- If you plan to buy purely as an investment to flip, this market is not ideal for short-term profits due to the ongoing price correction.
💡 When Does Buying Make Sense?
- If you’re planning to live in the condo for at least 5+ years before moving up to a townhouse or detached home, buying could be a long-term investment in your future.
- Once you have stable income and job security, you can explore purchasing.
🏠 Is Renting a Bad Idea? Not Necessarily
Renting often gets a bad reputation, but in your case, it could actually be the smarter choice—especially if you find a rental that costs significantly less than a mortgage.
🔹 Pros of Renting Right Now:
✔️ No financial burden of a mortgage or homeownership costs.
✔️ Frees up money for experiences in your 20s (travel, education, career-building).
✔️ Allows you to save and invest aggressively for a future down payment.
🔹 Cons of Renting:
❌ Monthly payments don’t build equity.
❌ Rent can increase over time.
💡 When Does Renting Make Sense?
- If you want flexibility while you focus on your career and education.
- If renting costs significantly less than owning, allowing you to save and invest more aggressively.
💰 Staying Put – The Smartest Move Right Now
If you have savings but no income, the best option (for now) is likely to stay put and focus on securing a job.
✔️ This allows you to build financial stability before committing to homeownership.
✔️ Gives you time to watch the market for better buying opportunities.
✔️ Helps you qualify for a mortgage later when you have stable income.
📊 Final Recommendation: Build Income, Then Decide
🔹 Short-term plan: Stay where you are, build your income, and focus on getting a job (since the job market is tough right now).
🔹 Once you have stable income: Re-evaluate the market and see if buying makes sense. If condo prices remain soft, you may get a better deal with incentives.
🔹 If buying still isn’t an option: Consider renting if it allows you to save more and invest wisely.
Ultimately, the key to real estate success is timing and financial readiness. Right now, focus on income first, then housing decisions later. Hope this helps, and feel free to reach out when you’re ready to explore your options! 😊
Richard Wang 