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Rent VS Buy

Does it make sense to rent vs buy?

 

5 Advantages of First Time Home Buyers buying vs Renting

 

Due to the city’s notoriously high housing costs, many people in Vancouver are faced with the question “Is it better to rent vs buy?” With prices approximately double the national average in it can seem less than worthwhile to buy a house in Vancouver.

However, Aleem from The Mortgage Specialist explains why buying can have significant advantages over renting. If you can’t decide between renting or buying in Canada, read on for our 6 reasons to become a first time home owner, even here on the Coast.

Rent Vs Buy

First off though, what is the current market like anyways? The following statistics are from the Canadian Real Estate Association:

Latest CREA Average Home Prices

February 2015 February 2014 Y/Y % Change
Canada-wide $431,812 $406,215 6.3%
Vancouver $879,069 $846,978 3.8%

On first glance, it can seem pretty hard to break into the Vancouver housing market. However, we’re currently facing some of the best mortgage rates, with some favourable terms, making this a super advantageous time to buy. With the price of homes predicted to rise, yet rates predicted to stay low, there are huge potential savings for the savvy home buyer.

So, Why Buy?

  1. In the long term, owning=saving. Although you may up paying more in the short term, home ownership is still the greatest factor in Canadian’s ability to save money overall.
  2. Your money goes to you. When you rent your money doesn’t go towards building your own equity, instead it goes to the building owner. Owning means all the hard work you put into payments goes back to helping you, not someone else.
  3. Steady investment. Over the last two decades, the value of sale in the Canadian real estate market has steadily increased. This can even be seen in relatively short periods of time, such as with the CREA stats for February 2015 vs February 2014 where the price increased nationwide by 6.3% and in Vancouver by 3.8%. In fact, there hasn’t been any 10 year time span where prices haven’t increased in Canada.
  4. Home ownership means greater borrowing power. Should you wish to borrow money again, for another mortgage or a different type of loan, your home will act as equity and will increase your chances of approval.
  5. It opens you up to move up. Not only will you now have the equity of a first home, you’ll also have invaluable experience and insight into the housing market. Owning a home is the first step to real estate investment. Once your budget allows, you’ll be able to start climbing the ladder of the market by buying subsequently better and better homes.
  6. Now’s the right time. With the First Time Home Buyer Tax Credit of $750 and the Canada Mortgage Rate being historically low and not expected to rise, now is a great time to buy. Plus, with handy online tools like mortgage payment calculators, being a first time home buyer in Canada has never been easier.

Still unsure? Talk to Aleem today for advice and solutions tailored to meet your needs. He’ll combine years of experience with some of the best mortgage rates in Canada. That way, instead of struggling to figure out the ins and outs of corporate banks, like with the CIBC mortgage rates, you’ll be able to confidently know you’re getting the best advice for your unique situation.

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