The decision to purchase real estate, whether it be a condominium, townhome, or single family home is a big decision. Let’s explore the benefits of ownership that you cannot achieve by renting:
- Customize: When you own you can decide the décor that best suits you. Over time you may want to change flooring, kitchen cabinets and countertops and well as bathroom makeovers. As your lifestyle changes your home can change with you. As a tenant there are generally restrictions on what you can and cannot do.
- Permanency: The purchase of your home can provide you with a sense of permanent stability. This is the place you can call home for as long as you want to be a home owner. Depending on your rental situation your landlord could sell the property and require you to move. You’ll incur additional expenses for moving and while there are some protections for tenants depending on your lease the sense of permanency is gone.
- Equity: As you make your weekly, bi-weekly or monthly mortgage payment you are essentially paying down your mortgage and building equity along the way. Each month you pay rent to your landlord you are essentially paying down their mortgage and assisting in making equity. It is much smarter to be building equity for yourself, isn’t it!
- Appreciation: The real estate market changes over time. Depending on the area you purchase in, style of property and several other factors you may find that over time your property appreciates greatly. Not all properties even in the same immediate area appreciate at the same rate. The benefit of this appreciate really comes into play at the time in which you decide to sell your home and move. Consider this factor along with any equity that you have built up by paying down your mortgage and you’ll see the immediate benefit. Once you give your notice to terminate your lease with your landlord you may get back all or part of your damage deposit – but you won’t have any appreciation on the property.
- Payments: Your mortgage specialist will sort out your financing terms with you and your financial institution. You may decide on a fixed rate mortgage in which the principal and interest on the mortgage stays the same for the life of term. Landlords can provide annual rental increases and sometimes those rental increases can be significant enough to force you to move due to affordability alone.
- Pay Out: At some point you may actually pay off your mortgage. This means that you will own your home free and clear and not have to make future payments towards the ownership of your home. It is the same feeling as paying off a car loan and the pride you have of owning the car and no more car payments – except the feeling is extrapolated 100 fold. No matter how long you rent you cannot get that sense of satisfaction.
I work with many buyer clients who are trying to decide whether they should continue to rent versus buying or clients who have a home to sell as they retire and wondering if they should purchase a condo or retirement residence or just become a tenant of a landlord. While there are many additional factors to consider in addition to those listed above such as affordability you’ll need the professional guidance of a real estate agent to assist you through this process.
A great REALTOR® can recommend an experienced and trusted mortgage specialist to assist as well. Here is a link to some great mortgage specialists //www.century21.ca/dale.cameron/RECOMMENDED_MORTGAGE_FINANCING_GUIDE
If you are looking to become a home owner instead of a tenant and would like to discuss this process in greater detail I’m here to help. Call me today at 902-240-0768 and let’s get started to your home ownership goals.
Century 21 Trident Realty Ltd.