Just the other day, I was browsing the Personal Finance bookshelves at my local Chapters store and leafed through a book titled The Smart Canadian’s Guide to Building Wealth. I almost skipped over a chapter that advised against renting-to-own when I noticed a sidebar titled “A Note to Ontario Homeowners”. The note asked why the vast majority of Ontario homeowners are wasting their money renting their water heaters.
I must confess that we fall in the category of renters and it never occurred to me that we could buyout the rental. The heater in our home is over 15 years old and is likely in its last legs. I found that Direct Energy charges us $13.99 plus taxes for the rental and it would only cost us $25 for a buyout (owing to the age of the heater). I went ahead and purchased the old heater and I am hoping it would last a year or two. If it breaks I will just buy a new heater and have it installed by a professional.
New Heater: Less than $1,000 installed. Rental Heater: $13.99 (in today’s dollars) over 15 years = $2,500. Owing your own water heater: Priceless.