Owning property in Canada is an excellent investment. Whether you live in the home or use it as a rental property, you should purchase a property.
Buying a house is a big decision that can’t be taken lightly. There are so many factors to consider, like the size of the home, your furniture and decor options, and, of course, insurance. You can read Canadian stores’ online reviews to help you decide where to buy the most affordable furniture and decor for your home. Insurance is a necessity. Reviews are also helpful in choosing insurance companies in Canada based on previous customer experience. Click on the links to see how reviews can help in the decision-making process.
Before you buy a home
Before the thought of buying a home even crosses your mind, ask yourself the following questions:
- Am I financially stable enough to afford a home and mortgage payments?
- Do I have the financial discipline to handle this large purchase?
- Am I ready to accept responsibility for all the costs that come with owning your own home?
- Do I have the time to do regular home maintenance?
Costs of buying a house in Canada
Purchasing a house is a costly exercise. Over and above the selling price, there are other costs that need to be considered. Buying a house requires a down payment to secure the purchase. Most loan companies and banks require at least 10% of the selling price as a down payment, but many financial advisors will push for 20%. If your down payment is less than 20%, you must take out mortgage loan insurance, which is another expense that you need to worry about. Other costs to consider are land transfer fees, legal fees, appraisal and inspection fees, property tax adjustments, and, of course, moving fees. Ensure that you can cover these costs before you buy a house.
Pros of being a homeowner
There are many advantages to buying your own home.
#1: Buying a home is a long-term investment and provides financial stability for your golden years.
#2: Canada offers significant tax breaks to first-time and long-time homeowners.
#3: You can update and renovate your home as you would like to.
#4: If you’re looking for a terrific way to make extra money, rent out your home and enjoy the rental income.
Cons of owning a home
When there are pros to buying a house, there are, of course, cons as well.
#1: There are many upfront costs to consider, like the ones listed above.
#2: Maintenance needs to be done regularly and these costs can quickly accumulate. Unexpected or costly repairs can land you in hot water.
#3: Being a homeowner is a long-term commitment. Should they transfer you for work or you want to move to another city, selling your home could take some time and cause delays to your plans.
#4: Interest rates can affect your mortgage payments. You could end up paying more for your mortgage if the interest rates suddenly rise.
Conclusion
Buying a home is an investment, but it comes with a lot of responsibility. You need to ensure that you are up to the challenge and can afford to make this investment. Speak to a financial advisor for any issues relating to the financial side of buying a home.