Why Should I Buy A Home?
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Whether it is your first or your third, buying a home is a joyful privilege that can be a defining moment in our lives. This process can indeed be stressful, particularly when you approach it feeling short on knowledge. At Lockhearts we exist to make this smooth and enjoyable, not just because it can be, but because you deserve it to be.
Why Buy A Home?
Lifestyle Benefits
Pride of Ownership
Pride of ownership is the number one reason why Canadians desire their own home. You are able to make improvements knowing that any appreciation that results will be to your benefit. It’s making an investment in your future.
Stability
There is no landlord looking over your shoulder. Homeownership gives you and your family a sense of stability and security.
Financial Benefits
Mortgage Equity
Each month, part of your monthly payment is applied to the principal balance of your loan, which builds your equity. You can borrow against a home’s equity for a variety of reasons such as home improvement, university or college expenses, or starting a new business. Why pay off your landlord’s property when you could be paying off your own? Homeowners accumulate wealth for the future while enjoying the benefits of a shelter that they can use, improve and sell. Their home is a safe haven for investment.
Appreciation
In Canada, especially in the last few years, homes have appreciated considerably. This has added substantially to the owner’s net worth. Unlike stocks and bonds, you get to live in your investment. Also, in Canada, your principal residence is exempt from capital gains taxes.
Transitioning from rent to equity
When renting might be best
Down payment - would a down payment for a home represent a financial strain or is simply not possible at this time?
Ownership length - Do you plan on living in a home for less than three years? If you own a home for only a short period of time you will be denied the opportunity to spread the upfront inspection and closing costs over time.
Property value - based upon price trending, overall demand for the area and price range you are considering, is your property more likely to go down in value for the foreseeable future than to increase in value? Is the short time-frame a risk?
Preparing for this big step
Renting has so many benefits and can be the easiest way to keep a roof over your head. Though in our experience, even the most frantic lifestyles can benefit from a move up to homeownership.
Renting is a safe tactic, but not entirely risk-free. The added security you can provide to yourself and your loved ones by owning a home leaves you less concerned about a change in your landlord’s circumstances, as well as providing a secure retirement asset. Further, the freedom and flexibility to furnish and make changes that suit you best are some of the greatest perks of homeownership.
The benefits of moving up to ownership
Factors that often prohibit us from pursuing this dream are often based around finance, but with today’s low mortgage rates and a range of financing options available, homeownership is more within your reach than you might think. Plus, don’t you just want to be paying down into your own pocket? When we rent we are paying somebody else’s mortgage, when you own your home you are building equity for your future.
So, if you’re ready to start dreaming big read on and equip yourself with all the knowledge you need to prepare.
The long term investment outlook
We’d love to be able to read the future. Over more than 40 years in real estate, we have learned that things can change and markets can move quickly, so preparation and patience are the best approaches to making smart investment decisions.
With the average Canadian property value steadily increasing year on year, owning your own home is also a sound investment and can be leveraged for future purchases. We don’t claim to know what will happen over the next 25 years, nobody can, but with a smart purchase in a great area, it is safe to assume that owning a home remains one of the best investment decisions you can make.
The financial return from selling a home that has increased in value is a benefit of a real estate investment - though we like to guide our clients to look at the long term, particularly as many of us will only seek to own one home over our lifetime. For us, the protection for your future, your retirement, and your beneficiaries are some of the greater benefits of homeownership.
