Pride of Ownership
Pride of ownership is the number one reason why Canadians desire their own home. There is no landlord looking over your shoulder. You are able to make improvements knowing that any appreciation that results will be to your benefit. Home ownership gives you and your family a sense of stability and security. It’s making an investment in your future.
Each month, part of your monthly payment is applied to the principal balance of your loan, which builds your equity. You can borrow against a home’s equity for a variety of reasons such as home improvement, university or college expenses, or starting a new business. Why pay-off your landlord’s property when you could be paying off your own? Homeowners accumulate wealth for the future while enjoying the benefits of a shelter that they can use, improve and sell. Their home is a safe haven for investment.
In Canada, especially in the last few years, homes have appreciated considerably. This has added substantially to owners net worth. Unlike stocks and bonds, you get to live in your investment. Also, in Canada your principal residence is exempt from capital gains taxes.
Are You Ready?
First – do you have the financial resources? You should have five percent of the purchase price of a home for the down payment, but ideally even more. Are there other priorities in your life e.g. starting a new business, which require your savings? If not, buying a home should be on your radar.
Second – do you expect to stay in your new home for some time? Moving can be expensive and you will want to build some equity before having to relocate. Your job and home life should be stable.
Are you ready to make your move from renting to owning?
If you’re renting, you may dream about owning a home of your own — a place to furnish and decorate as you like, to set down roots, to enjoy a great neighbourhood, and to entertain family and friends. But you may be uncertain whether you’re ready to make your move from renting to buying, especially if you haven’t started saving. Fortunately, with today’s low mortgage rates, your first home may already be within your reach. Down payments and mortgage insurance have
become increasingly more difficult to achieve so make sure you do your research and that you are truly ready to own a home.
You may have many reasons for wanting to own your own home. You may be getting married, leaving your parent’s home, moving to a new job, or having children. You may want to establish yourself in a neighbourhood where you will feel at home. You may want to secure a permanent place for you and your family. Whatever your reason, owning your home can also be a good investment. The long-term investment value of a home remains very good.
There’s also a sound financial reason to buy a home. Your home may be the single biggest investment you’ll ever make; one that could pay off significantly in the long run.
Consider this: the value of the average Canadian home has been steadily increasing. The earlier you can redirect the money you currently pay in rent into paying down a mortgage, the faster you’ll start building equity in your home.
Does the increase in value represent a good investment? The answer is yes; housing is typically a stable investment offering good rates of return. Low inflation, low interest rates, demographics, and immigration, are all factors supporting the belief that a home will continue to be a good long-term investment, at least in most parts of Canada. Even if you never leave your home, having a rent free home is a good retirement plan.
Perhaps more than ever, location is the key factor driving price increases. In a strong housing market, homes in particularly desirable areas are more likely to see above-average price increases. In weak housing markets, these homes tend to retain their value better.
Although no one can predict where prices will be 25 years from now, the average price of a home in Canada has risen substantially in the past 25 years, making a home investment one of the best investments available today.
There is a lot more to buying a home than first meets the eye, but if you take it step by step the process can be enjoyable and exciting. My Buyer's guide will help steer you through the process. In it, you will find helpful information on a wide range of subjects directly related to the buying process.
I hope you will find this guide helpful in your search for your new home and investment property. Remember, as your dedicated Buyer's Agent, I am here for you every step of the way, so please do not hesitate to ask questions. My goal is to be your Trusted Real Estate Advisor for life, and to help you, your family, and your friends, with all of their Real Estate needs.