THE RENT VS BUY DILEMMA
Photocredit to Jake Graham Photography. Follow him on Instagram @jakegrahamphoto and check out his website at www.jakegrahamphotography.ca
Have you ever tried to make a list of all the things you buy? Try now! It’s infinite. Food, clothes, TVs, tech gadgets, subway fare, gas, mouthwash, soap. Endless, right? Buy. Consume. Done!
I often wonder: if people buy most things, why do so many rent the roofs over their heads? I call it the Rent vs Buy Dilemma.
Renting is hassle-free and offers flexibility – but the real truth? Tenants still pay a mortgage – the landlord’s. Plus, they miss out on the secure investment of real estate. It begins with a 5% down payment on the mortgage and property taxes – maintenance fees for a condo – plus land transfer taxes and adjustments costs.
The property market can be unpredictable, but even if values don’t increase, it’s like having a BIG piggy bank. Owning is a forced saving. Every month builds equity for your mortgage – not the landlord’s.
Here are some tips…
- Obtain a pre-approval from a mortgage specialist. Mortgage rules have changed since October 17th so you may want to request an update.
- Withdraw up to $25,000 from an RRSP for first time home buyers.
- Find out the average annual increase in value and calculate the expenses. Online calculators are helpful.
- Call me to crunch the numbers for you!
Yes, mortgage rules have recently changed but buying is easier than you think!