Most individuals, young or old, rent at some point in their lives. The question is: when would it be wise to start investing in a house instead?
It is common knowledge that many homeowners rent their property to pay for their own mortgage. As a tenant, you are most likely to help someone repay their debt or provide a secondary source of income. Would not you like to do this for yourself? By doing this, you will build your own home value and increase your own value.
The costs of owning a home go beyond simply paying off a mortgage and paying your bills; you will be responsible for paying all other expenses including property taxes and maintenance costs for your new home. It’s not an easy thing, but the benefits of the property are amazing. As a home owner, it will be easy to get loans in the future, something that will be very useful in case of emergency or if you want to buy a car or other expensive asset. Home loans are generally offered at low rates while personal loans (for cars and for other things) are often offered with rates climbing up to twice the rates offered for a home. In addition, if you end up with a large debt from your credit card in the future, you could use your home equity and get what is called a debt consolidation loan (a large rate loan). low interest in order to pay your debts at high interest rate).
The real estate market is set to increase in value over time. In Canada, house prices are skyrocketing, which means that getting a property is an excellent financial decision. In addition, mortgage rates fell to a record high and we saw them falling more and more during the year. Buying a home today is a smart way to accumulate wealth for tomorrow.
Finally, as often reiterated by homeowners, at the end of your rental period, you end up with nothing at all. On the other hand, if you are working towards a mortgage, at the end of your term, you will own a house; and on your way, you will develop home equity. The choice is obvious!
Finally, it is worth considering that you can look for a middle ground between the two. You can always opt for rental with option to buy! Learn more about our rental option rental services here.