Are you using your hard-earned cash to pay the landlord’s mortgage? Wouldn’t it be nice to use that rent money to buy a home of your own?
Moving out of the rental market and into home ownership is a big step. For most people, a mortgage is the biggest financial commitment they will ever make. But this big leap into home ownership has always made sound financial sense. Think about the following facts when considering home ownership as opposed to renting:
- If you are 35 now and buying your first home now, you will likely be mortgage-free when you are 60 and will have a significant asset.
- Most likely your investment will appreciate considerably in 25 years. However, do not buy with the intention of making a quick fortune. Home ownership is a sound, long-term investment.
- Buying your own home is an effective monthly savings plan. If you choose to never buy into another retirement or investment plan, you are at least putting money away for the future.
- Owning your own home gives you and your family roots, and a sense of belonging in your community.
- You can fix the home to suit your needs and lifestyle. Many new homeowners are able to get a pet for the first time.
- Depending on local bylaws, you may have the potential to earn extra income by renting out spare room.
- Getting into the housing market may be easier than you think. Qualified buyers can buy a house with as little as five per cent down through the Canada Mortgage and Housing Corporation's mortgage insurance method. You may also be able to use RRSP funds as part of your down payment.
- With many investments, you must pay capital gains tax on the profit you make when you sell. If your home is your principal residence, this tax does not apply.
Once you have considered all of the benefits of home ownership and are ready to begin your search, give me a call. Using MLS I can prepare a customized list of properties that best meet your wants, needs and budget. I can be reached at 250-477-7291 or email: cherylwoolley@shaw.ca