When the housing market was quite tumultuous several years ago, renting instead of buying seemed to make sense. Mortgage companies were busy scrambling to re-assemble their capital, and housing prices were in a state of constant flux.
Since 2011, however, housing prices have made a healthy return. In fact, while housing is in ample supply for most communities, rental properties are experiencing a surge in demand like never seen before.
This clamor has triggered shrewd landlords to increase the rent on their property. Now, renters are paying on average more per-month for properties as they would for a low APR mortgage.
Money Spared from the Drain
On top of typically cheaper monthly costs, every dime spent on a mortgage contributes to your credit rating as well as your overall equity. By renting, your money instead contributes to someone else’s assets, equating to an empty purchase outside of the benefit of temporary shelter.
People looking to save on property taxes should also realize that this cost is typically folded into the price of rent.
Building equity can be an important step to securing a loan for a car or a child’s college expenses down the road. Spending money on rent does little to provide for future financial stability, if anything.
Also, most homes in markets like Okotoks real estate see a healthy gain in purchase price every year. This fact means that home ownership is a smart investment, creating value simply by waiting years to sell.
Greater Autonomy
The easiest reason to argue for home ownership is that, as a renter, you are at the mercy of the landlord when it comes to home improvement or maintenance. Despite many rental agreements clearly defining the responsibilities of the landlord, many renters become frustrated at the amount of sheer neglect for their properties.
Requesting a repair from a large rental company can often lead to a bureaucratic mess, as well. By buying your own property, you have allowed yourself the opportunity to control your own repairs and renovations, while adding value to your home in the process.
Many short-term renters feel little incentive to customize or improve a space because they will simply be leaving in a few years, whereas home ownership can cultivate an appreciation for making the home tailored to your own particular tastes and needs.
Buying a home is usually the first firm step towards building more solid financial stability and earning solid equity. To begin your adventure in home ownership, or to begin a new life with Okotoks real estate, contact us so that we can help you find the home you need to secure your future.
