Why should you buy a home? It’s the butter versus margarine story all over again with all of the pros and cons. Why should you own a property?
Let’s nip this in the bud. I am very unbiased, as being in this industry it works both ways for me, buying or selling. So here is some friendly advice for you prospective home buyers out there: Homeownership comes with many financial advantages. Homeownership for one, may be the single largest resource for savings for Canadian households. Your payments on your own property build your asset equity, as opposed to adding to your liability as a renter. Now don’t get me wrong this is where the discussion gets deeper. Renting is a better option within reason. If you cannot afford to buy, renting is a better option as opposed to over extending yourself. If you can afford to buy and you are renting, well, to each their own. The market is unpredictable and we can never assume to know future trends. What we can do is learn from our past to guide us towards a positive outcome.
Within the facts and figures of past market changes we see that the Canadian real estate market has increased every year since 1998. The return on properties can be phenomenal. In 2004 the average house rose by 9% in just one year. Over the next four years the market experienced an increase of 27%.
Two out of three Canadian families own a house; that is one of the highest homeownership rates in the world. Owning your property is usually more than just a financial decision. It means you can actually have a place you call home with all of your own cosmetic enhancements and emotional ties. Having a family home for children creates stability and support in their lives and is a tangible asset to pass down to the next generation if desired.
Being a homeowner you can also use the equity of your property as security for purchasing a second property as an investment or starting your own business. It is your first foot in the doorway of opportunity.