Renting vs buying a property
Are you hesitating on becoming a homeowner? Perhaps you need to take a closer look at the advantages. Yes, there are challenges that cannot be ignored too. Let’s take a look.
Compared to renting, there are many advantages to buying, the most important being that you’re investing in capital for about the same price as rent. Instead of paying monthly rent, which offers no return on investment, buying a home offers returns.
Plus, once your mortgage is paid off, you will no longer have to pay for housing, with the exception of municipal and school taxes. You’ll be able to enjoy your retirement.
The advantages of buying
It belongs to you
When you own the property, you don’t have to move when a member of the owner’s family decides they want to move in or to carry out major renovations. What’s more, your property is your space, and generally gives you greater privacy.
Transform your home to your taste, your lifestyle, your heart’s desire.
- Renovate the interior or exterior
- Add an extension
- Add energy-saving equipment (thermopump, etc.)
- Landscape
- Add a deck
- Install a pool
A mortgage isn’t forever
- Rent goes on forever. Have you had enough of rent hikes?
- Once you’ve paid off your mortgage, you can use your money to pay for other projects
Home equity means long-term financial benefits
- A home increases in value over time.
- You establish a family estate.
- It has tax advantages.
Leverage your first home
We all need to start somewhere. A starter home can bring you one step closer to the house of your dreams. Baby steps can lead to big things whether it’s a bigger house or to finance a project you’ve always dreamed of doing.
Remember, you can leverage the value of your property to:
- Start that dream project
- Make investments
- Buy a second home
- Finance a larger property
- And much more
It’s like having a forced savings plan
As an owner, you’ll see lifetime advantages. Rent is simply an expense, nothing more.
Tempted yet?
Talk to a Multi-Prêts broker. We can help you find a property for the same price you pay in rent. Don’t believe us? Let your numbers do the talking!
Pourquoi ne pas acheter?
Bien que les avantages soient nombreux, acheter une propriété peut avoir des inconvénients. Et ce n’est pas qu’une question de sous!
The “cons” of ownership
- You are responsible for maintaining your property. When the roof leaks, you have to fix it. You have to be sure you have the time and money to do that.
- Property ownership is a long term financial commitment, and you need a downpayment to become a property owner.
- It’s a long-term investment; the value of your property doesn’t usually increase much in the first few years.
- La valeur d’une propriété augmente habituellement peu durant les premières années.
- In the short term, popular central locations are more accessible and less expensive as a renter. (monthly payments are higher than a rent)
- Picking up and leaving becomes more difficult. It’s a lot more complicated to sell a house than ending a lease.
Use your RRSP’s to become a homeowner!
Have RRSP’s and want to become an owner? Take advantage of the federal Home Buyer’s Plan (HBP) allowing you to withdraw up to $25,000 to buy your first property, tax-free.