Riddle me this....to buy or to rent?

"Riddle me this, or riddle me that. Who is afraid of the big, black bat? "

Everyone should remember this one liner from Batman. And quoted by a canadian notheless. It rings true for a lot of Candians faced with the choice of home ownership.

Do I rent or Buy?
What is the difference?
Am I better off waiting, or getting in now?
Rates are really, really low right now, can I afford not to buy?
Mom and Dad say to save up 25% for my down payment, but I know you can start with 5%...which is better?
Do I go with curtains or Venetian blinds?
Carpet or Laminate?
Grass or Rock Garden?

Ahhhhhhhhh !!!!!!

To someone who is young and new to the process there is alot of advice out there and just as many people to share there opinions on the matter at hand. But I ask you this. Do you go to the Dentist to ask him about purchasing your new BMW X5 4.4i with the sports package and trim? Do you go to the clerk at the Grocery store to ask them for their expert opinion on what to do about the constant pain in your shoulder?

I would tend to think not, but I have been proven wrong in the past. :D

What I believe, and I think most of the other professionals in Real Estate believe is this: Ask an expert to educate you. This is what we do for a living. We don't make the decision for you. When you seek our guidance, we sit down with you, explain how everything works and come up with a game plan that suits your needs. We are not here to say do this. We give you the tools and educate you on the why's and HELP facilitate a decision that makes sense both now, and in the future.

Some thoughts to continue on from Friday...

Owning a home is generally considered to be a sound, long-term investment that can provide satisfaction and security for you and your family.

Each month when you make your mortgage payment, you are building equity in your home.

Equity is the portion of the property that you actually build through your monthly payment versus the portion that you still owe the lender.

At the beginning of your mortgage, more of your payments go toward paying off the interest and less toward paying off the principal. But the longer you stay in your home and the more mortgage payments you make, the more principal you pay off and the more equity you accumulate.

Most mortgages also offer you the option of making additional monthly or annual payments to reduce your principal faster. Some prepayment privileges, for instance, enable you to pay up to 20% of the principal per calendar year. This will also help reduce your amortization period (the length of your mortgage), which, in turn, saves you money.

There is also a tax advantage. If your home is your principal residence, any profit you make when you sell it is tax-free. A home can appreciate – or increase in value – as time passes, building more equity. As you build up equity, it’s usually easier to upgrade to a more expensive home in the future thanks to the profit you’ll make when selling your current home.

As an owner, you can also decorate and improve your home any way you like. Ownership tends to give you a sense of pride and can offer you and your family stronger ties to the community. Like anything that you own, it is cherished in a way not possible if you do not own it. There is intrinsic value in owning. A sense of accomplishment if you will. 

If you do decide that home ownership is right for you, it’s important to choose a home you can afford. If you can’t afford to buy your dream home, purchasing a more modest home can be a great place to start building equity that one day may allow you to buy the home of your dreams.

Since we’re currently in a buyer’s real estate market and interest rates have dropped to what most consider an all time low, now may be an ideal time to enter into home ownership for the first time.

Do yourself a favour...educate yourself today.

Until next time.....

Kevyn