Buying a Home is Better than Renting

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? Buying your own home has always made sound financial sense and will continue to do so. Here are some facts to consider when you start wondering why buying is better than renting: If you are 35 now and just buying your first home, you will be mortgage-free when you are 60, plus you will own a considerable asset. It is highly likely your investment will appreciate in 25 years. Don’t make the mistake, however, of buying a home with the intention of making a quick fortune; instead, think of home-buying as a sound, long-term investment. You can discover the pride of home ownership. You can fix up the place to suit your particular needs: knock out that cupboard under the stairs, put a darkroom or woodworking room in your basement, decorate in your own way, build a deck, create your dream kitchen…just the way you want them to be. Mortgage insurance that pays off the balance of the principal when a homeowner dies means your family will be left with a home and without debt. If you are planning to borrow money from a bank or other financial institution, owning your own home 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 5 percent down through CMCH’s mortgage insurance program. With many kinds of investments, you have to pay capital gains tax on money you make. You don’t have to pay that tax when the value of your house goes up. Finally, think about the alternative; if you pay $500 a month for a rental unit and never face a rent increase, over 25 years you would be paying out a whopping $150,000. For more information about getting into the housing market, contact a REALTOR™ in your community. REALTOR™ is a registered trademark of The Canadian Real Estate Association, and is used to identify real estate practitioners who are members of the Association.