The Pros of Buying a Home
The following information is taken from Lee Ivan’s website.
If you’re one of the many Canadians who are wondering whether this is the right time to buy a home, you may find that a good place to start is by weighing the ‘pros’ and ‘cons’. Consider the many advantages of owning your own home. There are many practical and financially sound reasons for buying a home in today’s market, whether you’re thinking of a condo, a duplex flat, a townhouse, or even a single family home:
- Home ownership is an excellent way to build equity. That’s an important consideration if you’re trying to build some financial stability – especially if you happen to be single and are doing it on just one income.
- There’s the security that comes with making an investment for the future. When you own your home, you have a resource to fall back on.
- Paying a mortgage off is usually better than “throwing money away” on rent. You could be paying high rents for years, adding up to many thousands of dollars, yet never end up with anything that’s yours.
- Your rental expenses can potentially increase significantly over time. Even a three or four percent annual increase can really add up, especially when you consider that it’s compounded year after year. However, if you buy a home and lock in a long term mortgage at today’s affordable rates, you’ll know exactly how much your payment will be for years to come.
- Owning your own home gives you the option of earning extra income, by renting out a specific portion of the property or by taking in a roommate.
- Homeownership affords an asset to borrow against if you ever need to. Even if your mortgage isn’t paid off, you can still borrow against the equity you’ve built up in your home – and often at far better interest rates than you’d normally get for almost any other type of personal loan.
- Property values tend to appreciate over time. Historically, real estate has proven to be one of the best returns on investment for Canadian consumers. And you’re enjoying your investment by living in it, versus just a piece of paper sitting in a safety deposit box!