Outlined below are 10 Benefits of buying Vs renting:
1. Buying home is a great investment. Homes tend to increase in value, in the past 20 years the average Toronto home has increased 11% per year.
2. You are in complete control. You can make any changes or improvements you want. When you do spend the time and money to improve the house it is for your betterment not your landlord’s.
3. You can leverage your money. You can put down as little as 5% and the bank comes up with the rest, yet you are still in full control. That is as long as you maintain your mortgage payments.
4. You have the ability to step up to a better home by leveraging your existing home equity. This can typically happen without significant increases in monthly expenses.
5. Your monthly mortgage payments are like forced savings. In the early days the majority of the payment is interest but you are still increasing your equity position with each payment. You then withdraw these savings when you sell your home.
6. Protection against inflation. Assuming you have a fixed rate mortgage your payments will not change over the life of your commitment, even if inflation goes up.
7. You have the ability to live how you want to live, decorate how you want to decorate. You get to be the king/queen of your castle.
8. You do not have to pay capital gains tax when you sell your primary Toronto residence. This is not the same situation for an investment property, but there certainly are other tax benefits associated with investing in property.
9. There are great tax benefits on investment properties. Even if the property is not your primary residence there are some significant tax deductions that that make this a very favourable investment strategy.
10. Typically when you buy you get more space than when you rent. This is not always the situation but it often is.
11. It is usually quieter in a Toronto home that you bought than a Toronto apartment that you rent. Many apartment buildings are just thrown up these days with paper thin walls. car
12. The monthly costs of owning a place are often just a little bit more than what you would pay in rent for an equivalent space. As you pay those monthly expenses you are bettering your home equity position as opposed to paying down your landlord’s mortgage.
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