Purchasing A House: A Solid Long Term Investment

How come you are using your well-earned money to pay off the landlord’s mortgage?

Why don’t you use that rent money to purchase your own home?

These are questions most people ask themselves once they start giving consideration to moving from the rental market into owning a home.

For most people, this is a huge step. Getting a mortgage is the largest financial commitment they will make in their lifetime.

However, purchasing your own house has always been a sound financial decision. Below are a few facts to consider when thinking about home ownership compared to renting.

• If you happen to be around 35 years old today and purchasing your first house, you should be mortgage-free close to 60 years old and you will be comfortable with a substantial asset.
• It’s very likely your investment is going to significantly increase in value in 25 years. It’s crucial, however, not to purchase with the objective of making quick money. You should think about buying a house as a good, long-term investment.
• Purchasing a house is an extremely effective method of saving consistently over decades. Although you might never invest in other retirement or investment programs, you are in effect saving money for the future.
• Owning your home means you and your loved ones are able to put down roots and get involved in the community.
• Learn about the satisfaction of home ownership. It is possible to improve the house to suit your purposes. You could also have pets in your house.
• When your family expands and go into their own homes, you have the choice of generating extra money by renting out vacant rooms or whole floors, if local bylaws permit it.
• If you plan to take out a loan from a bank or other lending company, owning your home is an obvious plus when it reaches negotiation time.
• You probably won’t require as much money as you believe to enter the housing market. Qualified buyers can purchase a property with just 5% down via the Canada Mortgage and Housing Corporation’s (CMHC) mortgage insurance plan. It might be possible to use RRSP money towards your down payment.
• As with many different types of investments, you will have to pay a capital gains tax on the profits. If your house is your primary residence, this tax will not apply.

After having diligently considered every facet of owning a home and are prepared to start your search, it’s time to find a REALTOR®. This individual has use of the Multiple Listing Service® (MLS®), a co-operative marketing system where properties are purchased and offered for sale. Making use of the MLS®, your REALTOR® is able to put together a tailor-made listing of houses on the market that suit your needs the best, desires and budget. Your REALTOR® can even give invaluable help and professional guidance to you all the way through the buying process.

Ready to purchase a home? Contact us to help you find the perfect fit!