If you are thinking of buying vs. renting, now is the time to do it. There are many reasons why you should buy especially if you are a first-time buyer. With mortgage rates at record lows and relaxing a bit of the stress test, you may want to think about the advantages of buying your first home, such as:
Tax breaks / credits:
To help offset some costs as a first-time buyer, there are some tax breaks or credits that you may not be aware of. Here are some that we know can help:
- Land transfer tax – some or all of the tax may be covered.
- RRSP withdrawal up to $35,000 for first time home buyers as a tax credit.
- GST new build rebate
Can move when you want
One of the best advantages of buying your own home, you can move when you want. You are not always able to do this if you are a renter, as your landlord may wish to sell your rental. Buying gives your family the security of a home where you can stay. It is your decision when to move.
Stable payments
You know what your payments will be over the years. When you rent your payments go up yearly (depending on your lease). Your payments will stay the same when you buy, even during inflation.
You live by your own rules!
One of the advantages of owning your own home is you can decorate to your heart’s content in your style. You are not afforded this advantage while renting. You can renovate, own pets and landscape your gardens.
Most of all you become part of the community with a sense of belonging you just don’t have when you rent.
Owning a home is forced savings
While most of us can put a bit of money away to get a home, over the years it is harder to save as unforeseen circumstances sometimes puts a detour into our savings plan. When you buy a home, it is really a forced savings plan. It is easier for most of us to gather equity in a home than putting a few dollars in investments or a savings account.
- Initial payments go towards interest and then money does come off the principle.
- Each of your payments will decrease the amount you owe on your home.
- Your home will go up in value.
Why contribute to someone else’s mortgage payments
Let’s face it when you are renting, that money is not really making any money for you. If you look at how much you will pay in rent vs. what your mortgage payments will be, most times it is best to buy.
No matter which route you take whether it is to rent or buy, always get the help of a trusted realtor. The Anne Winch Real Estate Team can help you find what options are available in selling, buying or real estate investment options. Call the Anne Winch Real Estate Team today to find the best real estate opportunity for you.