Should you rent or buy your home?

1. Renting VS Buying a Home
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2. Our Agenda
1. Agenda
2. Objectives
3. Introductions
4. Activity 1: Discussion
5. Activity 2: Vocabulary review
6. Activity 3: Dialogue
7. Activity 4: pros and cons of renting VS buying
8. Activity 5: Case studies
9. Activity 6: Dictation
10. Reflection

3. Workshop Objectives
1. To learn 8 new words related to pros and cons of
renting VS buying a home
2. To learn pros and cons of renting VS buying a home

4. Introductions…
What is your name?
What is your country of
origin?

5. Discussion
Activity 1
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6. Reflection
Right now, are you renting your home- or did
you buy your home?
What are some pros of renting a home?
What are some cons ?
What are some pros of buying a home?
What are some cons ?

7. Let’s review vocabulary related to the
pros and cons of renting or buying a
home?
Activity 2

8. Activity one: Vocabulary Review
Member of a
nationut
asset
down payment
tax break
appreciate
depreciate
amortization
period
finance
the length of time of you payments
to decrease in value
an initial amount paid at time of purchase- not including payments
to increase in value
to make payments
Something you own that is worth money
the value of your home minus what you owe
equity
a reduction in the taxes you owe

9. Activity two: Fill-in-the-blank
1. How much __________ do you have in your home?
2.Owning a home can be a great ______________ .
3. You don’t need a _________________ when you rent a home.
4. One advantage of home ownership are the ________________ .
5. Homes usually _________________ in value over the years.
6. It is possible that a home can _________________ in value.
7. How long is your ______________________________ ?
8. People usually __________________ their home over at least 10 years.
assetdepreciate
finance equity
tax breaks
down payment appreciateamortization period

10. Listen!
What are some pros or cons of renting a
home that Johanna and Alicia talk about?
What pros and cons of buying do
they discuss?
Activity 3
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11. Listen to a dialogue:
So True. On the other hand, if they depreciate …..
Johanna
Johanna
Alicia
Johanna
Alicia
Johanna
Alicia
Alicia
So Alicia, why did you decide to rent your home instead of buy?
Well for one thing, I didn’t have any money for a down payment.
That’s a good reason.
Having said that, home ownership would be nice.
True. They can be a great asset, because they have the potential to
appreciate in value over time
That’s one reason why you’re glad you’re renting!
That’s for sure.
Johanna
Alicia No, I didn’t know that!
Did I tell you that I am thinking about buying a home?

12. Listen to a dialogue:
Johanna
Alicia
Johanna
Alicia
Johanna
Alicia
Johanna
Alicia
Alicia You’re welcome!
Not right at the moment, but maybe next year.
It is good to take your time and think about the pros and cons first.
Yes, that is for sure. I am going to take the rest of this year to review my
options and gather a down payment.
That would be great!
Well, do your research and good luck to you!
I’m not sure, but I would like an amortization period of 15 years or
less.
Johanna It sure would, but I’m not sure if it would be possible.
Thanks Alicia.
For how many years would you like to finance your home?

13. Let’s learn the pros and cons of renting VS
buying!
Activity 4

14. A. Why rent?
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15. 1. No down payment is needed!
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This makes it easier to get into your home!
A down
payment is
necessary
when buying a
home.

16. 2. You don’t have to worry about
maintenance!
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Usually the care taker will shovel the snow or
mow the lawn for you!
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17. 3. Easy to move
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If you need to move in a hurry you just have to
finish your lease or sublet
If you own a home
and need to move
quickly, you can
rent it out or sell it-
sometimes at a loss.

18. 4. Avoid buying a depreciating asset
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Houses can depreciate in value. You can avoid
this by renting.

19. 5. Avoid the cost of maintaining a
home
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When you rent you are off the hook!

20. A. Why buy?
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21. 1. Your house may be a great asset!
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Your equity may grow the longer you own your
home
Refinancing may
affect your equity.
Always speak to
your financial
advisor before
refinancing!

22. 2. You can decorate your house as you
please!
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This is usually
not possible
when you rent.

23. 3. You may have a greater sense of
community
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People who own homes may stay longer in their
communities and have stronger roots where
they live

24. 4. Steady housing payments
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You may be able to lock-in a low long term
payment.
This could
leave more
money in your
pocket.

25. 5. You may get tax breaks
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You may be able to deduct the interest portion
of your mortgage payments
Speak to your
accountant
about this

26. Don’t rush into any
decision. Be sure to
speak to your
accountant, financial
advisor and real estate
professional.
One more thing!
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27. Contact:
Residential Tenancies Branch
302 – 254 Edmonton Street
Winnipeg, Manitoba
R3C 3Y4
Toll-free: 1-800-782-8403 (within
Manitoba)
Tel.: 204-945-2476
Fax: 204-945-6273
Email: rtb@gov.mb.ca
www.manitoba.ca/rtb (See
website for other locations within
Manitoba)
More
Questions?
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28. Let’s now consider some scenarios. Are
these pros or cons of renting or buying?
Activity 5

29. Scenario One
Sam wants to paint his living room, but his
landlord said he would have to use a different
colour.
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This is a
con of
renting a
home.

30. Scenario Two
For the third consecutive year, Becky’s rent
has increased by 4%.
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This is a
con of
renting a
home.

31. Scenario Five
Samantha and Natalia are room mates. They
both got accepted into a university far away.
They subleted their apartment and 6 weeks later
were living in their new home.
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This is a pro of
renting

32. Scenario Three
Robert and his wife finally paid off their home
and are free of mortgage payments
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This is a pro for
buying a home

33. Scenario Four
As Diana was heading
out the door, she
discovered her fridge
was leaking. She had
to cancel her plans and
take of a damaged
floor and the purchase
a new fridge.
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This is a con of home
ownership.

34. Scenario five
Sophie got a tax
reduction because of
her mortgage
payments.
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This is a pro of home
ownership.

35. Dictation
Write what you hear!
Activity 6
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36. Dictation 1
As a home owner you may be eligible for tax cuts.

37. Dictation 2
When you rent, you usually need to get the approval of
your landlord before doing any home improvements
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38. Dictation 3
If you have to move when you own a home there may be
a lot to consider. Selling a home quickly could result in a
loss of equity.

39. Dictation 4
When you own a home you are responsible for day-
today maintenance, such as mowing the lawn and
shoveling the snow.

40. Dictation 5
When you own your own home you could look forward to
one day living mortgage free!

41. Reflection
What did you learn today?
 8 new words related to buying
or renting a home
 Important points related to
buying or renting a home