It’s an old question – should you rent or should you buy? For more and more people, especially considering the record low interest rates Canada is experiencing at present, the answer is to buy. Of course there are pros and cons on both sides of the argument, especially considering a mortgage is a long term commitment, while suddenly moving from a rental property if called upon is a much simpler undertaking. As an investment however, few things can match the long term value of real estate.
As an exercise here are just a few of the benefits of purchasing a home rather than buying one.
It Helps You Build Equity
When you’re renting a property you are essentially paying for someone else’s mortgage, not your own. The only one who is building up personal equity in this case is the homeowner. You have to live somewhere so why not live in a place that ultimately pays you a dividend?
Do What You Like With The Property
What if you live somewhere, but are dissatisfied with some aspect of it? Say there is a potential view that would require the installation of a picture window. Or if the plumbing is dated and you would like to see a new tiled shower enclosure installed in the bathroom. Unless your landlord is willing to make the investment your custom improvements are never going to happen. If you are the owner of the property however, the sky and your personal budget are the only limit in terms of personal design features.
A Legacy For Your Family
Your home is a very special place. It’s where you have put down roots, raised your family and made a lifetime’s worth of memories. Your home is a legacy that can be left for the next generation for them to build their own personal memories. If you’re a tenant there is no such reward / memory to pass on to those who follow. Also, by living in a family home for an extended period the property will no doubt be updated and modified to accommodate the needs and tastes of your growing family. It has been crafted through the years just for them. It’s unlikely any temporary rental unit would ever have such a personal hold on a family.
You Know What Your Costs Are
With a mortgage you know what your monthly payment will be, at least throughout the life of the mortgage. If you’re a renter the monthly rate will be linked directly to the whim of the landlord. Even if your rent is spelled out in a rental or lease agreement, the monthly fee is only valid as long as the agreement is in place. Once it runs out in a year or two the renter will have very little say if the landlord decided to jack up the rent. As a mortgage holder, there is much greater payment stability for the long term.
A Stake In The Community
Have you ever lived in an apartment, maybe even for several years yet never learned the name of your next door neighbor? It’s a lot more common than you might think. But if you’re a homeowner you’ve made a stake in your neighborhood, in your community. A far deeper sense of community will exist in a neighborhood of owner-occupied homes than in a townhome rental development for example. Owning a home says you’re there to stay. Traditionally homeowners are the ones who become involved in the community groups, the school committees and all of the other organizations that keep neighborhoods viable and livable.
These are just a few of the reasons why it makes more sense to own a home rather than rent one. If you’re a renter but you’d rather be an owner, then contact Pemberton Holmes Nanaimo today and let a member of its family of real estate sales professionals help guide you on the road to home ownership. There never could be a better time than right now.