How often have we heard a would-be homeowner say, “I’m waiting for the market to come down before I buy?”
How’d that work out for those homebuyers?
Don’t be afraid to ask. As the dream of home ownership grows less attainable; for average income earners, is owning a home still the right dream for most? Don’t get me wrong: owning has its benefits -- from gaining equity to renting out unused space or for renovating to make that space truly yours. But just because homeownership has its advantages, is it still the best strategy out there?
Often the largest purchase anyone ever makes, buying that first home has become synonymous with “making it” in life. While some swear real estate is the best investment vehicle, many very successful and smart investors swear that renting a home is the only way to go.
But remember: after buying the dream home you scraped just enough money together for, you’ll be shocked with thousands of dollars in additional closing costs. And, when you go to sell, it’ll cost you thousands if not tens of thousands dollars more.
While many markets throughout Canada appreciated, leaving homeowners laughing all the way to you know where, other markets softened or even depreciated. Although the global pandemic led to job losses and mortgage deferrals, it also streamlined working remotely.
Working professionals who bought living spaces in downtown high-rises to be close to their work are no longer confined by their office’s location. But where does that leave them and the biggest purchase of their life: in a deflated market amidst a global pandemic?
A wise approach: If you know you’ll be living in a specific area for the next 20 years, by all means, buy. Every month you’ll be paying down your mortgage, earning equity and creating years of Hallmark Christmas moments. For the rest of us who have trouble planning more than a year or two in advance, consider renting instead and investing your cash in rental properties. While still getting all the benefits of owning real estate, you’ll also have the mobility, flexibility and freedom to live and work for who you want and where you want.