Although the Ontario real estate market has proven fairly stable in the past few years, first-time homeowners are always concerned about the advisability of investing in a house. A new home for sale in Ontario is likely one of the biggest purchases you’ll ever make, and comes with a host of responsibilities like upkeep, maintenance, and repairs. At the same time, home ownership is a lifelong dream for so many people that not investing in a house might seem like a big mistake.
If you’re considering buying a home in the Ottawa or Rockland region, you should weigh the pros and cons of ownership versus renting before you make any final decisions. Ideally, this decision should be made with a financial advisor and real estate agent who can help you located resources and project the long-term benefits of your investment.
Financial Gains in the Real Estate Market
Statistically speaking, investing in a stock portfolio (over the long term) will yield you around 8 percent in returns. Traditional savings accounts rest somewhere closer to 4 percent. On average, home prices tend to rise at around 3 percent each year.
In terms of straight investing, this means a home purchase is the least profitable of your options. However, homes have the added advantage of being a necessity. You have to live somewhere, and you’ll most likely be paying rent every month regardless of where you live. When your monthly housing budget goes toward an investment, it can be a smarter use of your money.
There are also tax advantages to consider, as well as the potential to fix up an older home and resell it at a higher price just a few years down the road.
Of course, when you own a home, you do have to pay more out-of-pocket costs, regardless of your buying and selling plans. Renters may not have to pay for their own garbage, sewer, or water costs, and any repairs that need to be made to the facility are directed through a landlord or property owner. When you own a home, these all become your responsibility.
Renting is also better for those who want to live in a nicer neighbourhood but can’t afford the homes there. The nicer villages and hamlets in Ottawa tend to provide access to great schools and town features, and if you want the benefits without paying the home ownership costs, then renting might be right for you. You’re also not tied down to your investment, and can move or relocate without the hassle of selling your Ontario home.
Additional Advantages of Owning a Home
Not all the reasons to buy a home in Ontario have to do with money. While your personal finances should factor in your decision-making process, you also have to consider how important it is for you to have complete control over the place you call home.
Rental homes rarely allow you to customize your living space. You can’t paint, remodel, update, or landscape your house, and there might be additional costs for having pets. And in many cases, you’re still tied down in terms of a rental or lease agreement.
Buying Your New Ontario Home
It doesn’t matter whether you’re ready to buy a house tomorrow, or if you’re still in the resource-gathering stage—we’re here to help you make the right decision for your family. Contact us today for more information on financing a new house or in starting an Ontario real estate search to discover what kinds of options are out there.