The Advantages of Owning
There are two big advantages to buying a home; an appreciating asset and the emotional satisfaction inherent in ownership.
A homeowner’s mortgage payments are, essentially, a savings plan. Instead of paying rent that profits someone else, the homeowner pays him or herself. Over time, two things happen; the amount owed on the house becomes smaller as the principal loan is paid down, and the value of the house rises (the average Canadian home price has gone up over 300% since 1980). Ownership also gives the useful option of second mortgages, which can be used as low interest loans against built up equity. How about purchasing a rental property with the equity you have in your private residence. Use this asset to your advantage to built your wealth.
There is also an emotional security to property ownership. The home can be modified to the owner’s desires and needs without worrying about a landlord. The homeowner never has to move because a landlord has decided to raise the rent or sell the property. Additionally, an Ottawa mortgage holder is more likely to enjoy local facilities and participate in community events.
Renting can offer some advantages but, in the end, the renter is always paying another person’s mortgage and can be forced to move according to the landlord’s needs.
Renting is more flexible for people whose jobs require frequent moves or are unsure that they will remain in their current town for three years or more (although there are property management companies that specialize in handling rentals for distance owners).
Owning does involve more responsibilities, as the homeowner must look after maintenance and repairs. Sometimes, people will choose to rent when they cannot afford the real estate prices in their preferred residential area.
If you have additional questions or would like to see if you can prequalify for a mortgage in Ottawa, contact one of our real estate representatives to help you find a lender to assist you in your pre-qualification.