12 Apr Why is Buying Property More Financially Savvy Than Renting?
There’s no denying it – owning a home in today’s incredibly competitive real estate market can be daunting. From bidding wars to the highest property prices in history in Ottawa, it can seem like much more comfortable of a bet to rent. However, there are some undeniable benefits of buying property – read on to find out why it may be a better choice.
1. You’re building equity
Each payment you make towards your mortgage is putting money in YOUR pocket, not somebody else’s! Granted, the first few years of your mortgage payments will go in part towards interest, but at the end of the day you’re still building equity and increasing your net worth.
2. You gain privacy and the freedom of choice
Not a fan of your kitchen? You can renovate! Feel like painting your walls in a bright color? Nobody is stopping you. Owning a home means that you have the option to decorate and make changes to it as you please. You’ll also get to avoid visits from landlords, or having to play by anybody else’s rules (unless you live in a condo, in which case you’re required to follow the building’s guidelines).
3. Your property will likely increase in value
At the rate that the Ottawa property market has been accelerating, the same home that you bought for $600,000 today will likely be worth more in even just a year. This means that if you choose to sell, you get to keep the capital gains on your property, minus any applicable tax.
4. Your monthly mortgage payments will sometimes be cheaper than renting
Depending on a variety of factors such as your neighborhood, the cost of your property, and the cost of your property taxes, your mortgage payments will sometimes be cheaper than renting the same home. Even if your monthly mortgage payments when factoring in additional costs ends up being higher than the cost of rent, know that you’re guaranteed to be paying a fixed amount per month for years to come – unlike renting, where a landlord can easily spike the price.
If you’d like to crunch the numbers and figure out if buying a home is worth it for you, don’t hesitate to give us a call today at 613-228-3888 to speak to a mortgage broker.