Canada’s housing bubble may be bursting, but if you’re considering a move into homeownership, there is still hope. Well, Canadians are continuing to show a preference for owning their own homes over renting, according to a survey. The survey found that 60% of Canadians believe renting is a waste of money. It also found that 14% of Canadians believe owning a house is a better investment than renting. Let’s find out what is making it tough for Canadians to buy a home.
It’s Better to Own Than Rent
Owning a home is every person’s dream—owning something, building equity, being there for the long haul. And why wouldn’t it be? After all, a house gives you physical, financial, and emotional security. But why are the majority of Canadians, including millennials, saying it’s better to rent than own a home?
Some believe that buying a home is an investment in security, peace of mind, and a stable financial future. Others believe that homeownership gives them an opportunity to build equity and can only be a beneficial long-term investment. Canadians view owning a home as not just a place to live but of investment. Canadians overwhelmingly view homeownership as beneficial to their quality of life. But even though homeownership is so expensive for Canadians, it’s important to weigh all the factors involved.
Why Do Some People Prefer Renting?
Managing your own property can be a big undertaking, especially if you’ve never done it before. From collecting rent to filing taxes, it can feel like a daunting task. And although renting has its downsides, there are also some advantages to renting. For one, you don’t have to deal with the headaches and potential pitfalls of owning property. And, of course, there are the financial benefits. With rent, you know exactly how much will be paid each month, which can be helpful when budgeting.
Renting an apartment or house is one of the most popular housing options for a lot of people. Many find the flexibility of being able to move at their own pace or the convenience of being able to cancel anytime appealing. Unfortunately, there is a stereotype about renting that rings true: renting makes you poor. The simple truth is that renting doesn’t guarantee you’re poor. It just means that you’re living on a budget. Renting doesn’t usually mean that your income is too low, just that your apartment rent is more than 30% of your monthly take-home pay. With this, there’s no need to wonder while a majority of people prefer to buy and own a place they can call their home.
Why Should You Buy Your Own Home?
Check out the following advantages:
- It serves as your single investment. A home can provide you with the right level of stability you need in order to build a secure financial future. It can give you the space and security to do the things you like to do. In addition, it offers you a way to unlock your wealth, as it typically appreciates over time. For these reasons, many argue that homeownership is the best financial decision you can make.
- Sometimes it is cheaper than renting. Buying your first home can seem daunting. You’re on the threshold of one of the biggest investments of your life, and the process is complicated as well as time-consuming. Luckily, there are things you can do to make the process simpler. For example, if you’re a first-time buyer, it may be cheaper for you to buy a home instead of renting because interest rates are so low. Also, the prices of homes have risen at a greater rate than incomes, so it may be worth waiting a few years before seeing how much of a home you can afford. Renting is also a good way to get your feet wet.
- It builds up equity. Homeownership is a powerful asset and one of the strongest forms of wealth building. One of the main benefits of homeownership is building up equity in your home, which is defined as the difference between what your home is worth and the amount of your mortgage. Discuss your potential options with a Mortgage Brokerage Langley or your bank. While this equity doesn’t just sit in your pocket, it does provide you with the ability to sell your home for an additional profit down the road. Plus, you own a home outright, which means you have the freedom to renovate, upgrade, move, or leave if you so choose.
- Lowers property taxes and maintenance costs. Are you on the fence about whether you should live in your own home or rent? Do you wish you could afford to own a home, but you fear that you can’t afford the monthly costs? While housing prices are going up, wages aren’t keeping pace, and many people are in over their heads with debt. But homeownership can be the solution for you. Low property taxes, lower maintenance costs, and lower mortgage interest are all reasons why you should consider buying and owning a home instead of renting.
- You get to retain your capital gains. There are many reasons why you should buy and own a home. Many believe that home values rise over time, so buying now and investing in the future could result in a significant return. Others think that owning your own home is safer and more secure than renting. Still, others think that buying a home is the best long-term investment you can make. But, one of the best reasons to buy and own a home is that you get to keep more of what you earn.
- You get stability in life. Homeownership has many perks that make it a worthwhile investment. There are many different reasons to buy a house, but stability is one of the most common. Having a home means you have stability; you are not renting on a monthly basis, and that rent money could instead be invested in something far more stable: your own house.
If you can’t afford to buy a house right now, don’t get discouraged. There are many benefits to purchasing a home, even if right now you’re just renting. With home prices rising rapidly, it may be more affordable than you think. Additionally, there are many taxes and financial benefits that come with owning a home, as homeowners may realize lower property taxes and maintenance costs than renters.
Before you purchase your home…
Few things stir up more emotional reactions than buying a home. For most people, buying a home symbolizes freedom, security, and progress. Buying a home in Canada can be one of the most exciting experiences of your life. Before diving in, make sure to talk to a professional like MortgagesLab Langley.
Buying a home is a big decision. Not only does it take time, but it can also cost a lot of money. And, if you’re like most homeowners, you probably had dreams of moving into your dream home when you were younger. A dream home is, after all, what you imagine it to be. A dream home may have a big yard, a pool, a fireplace, a playroom for the kids, a home office, a man cave…The possibilities are endless, and since many of us spend our entire lives saving for a house, it’s a dream that’s certainly worth having. But, before you sign on the dotted line, there are some things you need to consider.
However, it’s always a good idea to know what you’re getting into before you buy a home, no matter how good the deal is. In Canada, there are several things you should know about before you purchase a home, and you should know them before you sign any paperwork, including your mortgage agreement.