Buying a home is undoubtedly a big financial commitment - it's also a very exciting time! Taking this important step requires a lot of detailed research and careful number-crunching, and it brings with it a number of advantages you may not have realized. Owning a home can indeed be a great investment; read on to learn how!
Buying a home, no matter what size or location, will get you on the property ladder. Congratulations, you're now a homeowner with a mortgage! Those monthly payments are not just an obligation but can act as a form of forced savings as well. Many find it helpful to think of the housing costs that come out of their account monthly as funds that are steadily building towards outright ownership. Thinking of mortgage payments as bank deposits changes your focus! You are using your money constructively, putting it away regularly into a valuable asset that you can sell later on.
Building upon our last point, buying a home allows you to build equity over time. The more mortgage payments you make, the more you reduce the amount owing on your mortgage, and the closer you get towards paying the whole sum off. That end goal is not the only important measure, however. As you make progress, every single step along the way, you are accumulating more equity, which is itself a solid financial resource to have at your disposal. Successfully building up equity means you'll have greater options and financial flexibility down the road.
One of the advantages of taking the plunge and buying a home instead of continuing to rent is that you can count on your payments being fixed throughout the term of your mortgage. For renters, increases are beyond your control. In the GTA, rents have also been skyrocketing in recent years. If you are careful when setting up your mortgage you can play with the numbers to a certain extent, and keep payments realistic and manageable. The predictability of having these fixed amounts represents real peace of mind to many homeowners.
Buying a home is typically a good long-term investment. If you stay in your home for a while, you should see a substantial appreciation in value. That's one of the benefits of buying a home in the GTA; demand is so high in today's market that merely owning a house, regardless of size or location, automatically puts you at an advantage.
An investment as big as purchasing a home is a milestone for every buyer. If you're thinking it could be time to enter the market, remember that home ownership comes with a few built-in advantages! Thanks for reading and don't forget to follow the Marina Homes blog for more great home buying tips.