Buying or Renting, What is Best for Us?
Rent or Buy Your Next Home?
For many years in Canada, most families worked extremely hard to purchase their first home as quickly as possible. That was the conventional wisdom of their parents, the banks, and friends. It was believed that the purchase was a substantial investment that would help in the future as a source of funds during retirement. When millennials were ready to have their own homes, there was a shift away from buying a home. Many decided to rent instead of owning. This caused homeownership rates to drop to 30 percent for millennials compared to 55 percent for their parents.
Advantages of Renting
There can be advantages to renting. If you are likely to be relocated with your job, uncertain where you want to live, or your family circumstances may be changing. When you are a tenant, you know what your monthly expenses will be, and any maintenance or repairs are not your concern. Some of the disadvantages are that the landlord can end the lease for several reasons, and you cannot make any renovations and rents always increase.
Times Have Changed
The arrival of COVID-19 this year has caused 2020 to be a crazy and very frightening time for all of us. The virus has changed many aspects of our lives. After the lockdown period, many people realized that it was time to buy a home, either a house or a condo. They wanted to buy their own home and take control of their lives.
Why Buy Now?
There are many reasons that people have decided to buy a home now. Many of us are working from home and will be for the foreseeable future. Mortgage rates are at unprecedented low rates and are expected to remain low. To help new homeowners, on 1 July 2020, the Canadian Mortgage and Housing Corporation changed the application requirements for an insured mortgage. These are helping first-time buyers.
Advantages of Home Ownership
When you own your own home, there is a real sense of being settled and getting on with your life. Homeownership has many advantages that bring intangible benefits. These include a sense of stability, belonging to a community, and pride of ownership. You also know what your monthly costs will be for the life of your mortgage. You will be building equity as you pay off your home, and if prices continue to increase, the value of your investment will grow. Owning your own home allows you the freedom to make small or major renovations and decorate your home precisely as you want to.
It is the time to buy that home, move quickly and always contact your Real Estate Agent REALTOR®.