I just returned from visiting some friends and relatives in the 'big apple'. Knowing that I have been investing in real estate since I was in university, renting and buying homes was a topic of discussion during breakfast, lunch and dinner! What I realized from talking to them was how different the market is down in New York and the attitudes toward renting vs. buying. When you're paying $2K-$4K a month for a one bedroom apartment, buying seems impossible, yet many New Yorkers want to, and ARE making it happen; scary for sure, but possible. Our talks reminded me of when I came to Canada and rented my first property and thinking that buying was impossible for me at that age; I was wrong. That's why today as a real estate agent, I want to share with my friends why they should stop paying rent and making their landlords rich! Renters help landlords build equity and that's why there's so many investors looking for real estate; it's one of the safest investments out there because EVERYONE NEEDS A ROOF OVER THEIR HEAD!
This summer I've encountered lots of people in Ottawa that are completely against buying. I respect their opinion and I understand circumstances are different for everyone. However, when you've been renting the same place for over 5 years, renting just doesn't make sense to me! Just think, $1,000 per month for 5 years...that's $60,000 according to my brain's calculator! That's $60,000 that could be in YOUR "forced savings" account.
A home used as your primary residence is a great investment! I always joke that its almost like a bank account! A tax exempt bank account IF you use such home as your main residence; as the property goes up in value (appreciating through the years), when you sell it, the profit is all YOURS. Paying your mortgage down basically equals "forced savings!". No downpayment? Compromise for a little and save! Credit score not the greatest? There's so many small changes you can make to better your credit (contact me if this is the case! One of my clients couldn't qualify for a home 8 months ago and literally just moved into his home August 26th!). From making your monthly payments to keeping your credit card debt under 75%, even the little things make a difference!
Don't ever get discouraged, look for people who can guide you and help you get where you want to be! I know I wouldn't be where I am if it weren't for my mentors! As the Frank Sinatra song goes, "If I can make it there, I'll make it anywhere...it's up to you, New York, New York!" ....So if they can MAKE it, so can you...Ottawa, Ottawa!