Today, there are more and more people buying homes than ever before. Renting is starting to become a thing of the past because now is a great time to buy a house. It probably is the best investment you could make because there is such a high demand for housing. Now the question is, should you rent or should you mortgage?
Well, this really depends on a lot of factors. You’re financial stability, your long-term goals, how long you want to stay in the home for, are you a traveler? When renting a home, you make your monthly payment and that money is gone forever. But with a Mortgage, your money is invested into the home and after the loan is paid off, the house is yours to keep, sell or pass on to your children. The general rule of thumb is the 5-year rule.
Owning a home means that you can blast your music, paint your walls, tear down and re-do the bathroom, and hang whatever you want on the walls. Mortgaging a home in Ontario is pretty much investing in your future.
Unlike many other markets, real estate is sort of the black sheep. Even though it’s constantly changing, it’s always appreciated. The trick to buying a home is to keep an eye out when the prices are at the low points and sell when they are at the high points.
Emotional satisfaction is also achieved by owning a home. The fact that you own your own home to grow with your family is one of those things that gets everyone going. The older houses get, the more memories they carry. Renting on the other hand doesn’t give you the same emotional satisfaction. You make your payment and that’s it, nothing to show.
A major benefit of buying a home is that you’re able to do renovations, decorations, or any other “actions” that you’d like. Doing these improvements actually increases your own home equity, whereas when you rent, any input you make on the home builds your landlord’s equity.
A house is a great investment not only money-wise but emotionally wise too. Remember that when you rent, the payments never stop, even 30 years down the road. Mortgage payments, although they take 15-30 years to pay off, do eventually stop, and leave you with a nice home, plenty of equity, and no more obligations.