Posted by & filed under Victoria Real Estate Update.

Should you be asking yourself; why use your hard-earned cash to pay the landlord’s mortgage when you could be using the rent money to buy a home of your own? That’s the question you should ask your self if you are renting. I know it is a big step to buy a property, it is in my opinion one of the best things you can do. 

Taking out a mortgage is the biggest financial commitment  most people will make in a life time.  Buying your own home or Real Estate in general has always made sound financial sense. Compare these facts  when considering home ownership as opposed to renting.

  • If you are 35 now ( I wish I was that young) and decide to buy your first home this year, you will likely be mortgage-free when you are 60 and sitting comfortably on a considerable asset.

  • It’s most likely your property will appreciate considerably in 25 years. It is  important,  not to buy with the intention of making a quick fortune. Think of Real Estate Investment as buying a sound, long-term investment.

  • Buying a home is like forced savings.  Even if you never buy  another retirement or investment plan, you are putting money away for the future.

  • Owning Real Estate of your own means you and your family can set down roots, get to know your community and involve yourselves in it.

  • Discover the pride of Real Estate ownership. You can fix the place to suit your particular needs. You can also have pets in your home.

  • As your family grows (and the do real quickly) and moves on to purchase Real Estate of their own, you will have the option of earning extra income by renting out spare rooms or floors, if local bylaws allow.

  • If you are planning to borrow money from a bank or other financial institution, owning your own Real Estate is a definite plus when it comes time to negotiate.

  • You may not need as much money as you think to get into the home market. Qualified buyers can buy a house with as little as five per cent down through the Canada Mortgage and Housing Corporation’s (CMHC). Also available now is 100% financing, the rates are a bit higher but you will be in the Real Estate Market. You may also be able to use RRSP funds as part of your down payment, this is a great way to get a tax credit and use the funds for a down payment. My oldest daughter did exactly this.

  • With many kinds of investments, you have to pay capital gains tax on the profit you make. If your home is your principal residence, this tax does not apply…. Tax free!! It does not get any better.

After you have carefully considered all of the aspects and made a decission to jump in to the Real Estate Market, contact us. We will sit down and go through the whole buying process with you and guide you all the way. On our website we have a lot of free services and info.

Cheers, Anders

Properties In Victoria Professionals – Royal LePage Coast Capital

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