The Debate Between Buying vs. Renting
Many Canadians face the tough decision of either buying or renting a property. Each category comes with an array of pros and cons, but most experts agree that buying is the wisest decision. Today, we’re breaking down why purchasing property is ultimately the best option.
Most financial advisors will inform you that buying property is the safest investment currently available on the market. Here in Canada, property values appreciate steadily within a 10-year period, meaning if you wish to sell your condo after a decade, you’ll be turning over a profit.
Several Canadian cities have experienced something called a real estate bubble, where housing prices soar astronomically for a period of time before seeing a declining phase. Both Toronto and Vancouver have experienced this intriguing phenomenon, which proved to be profitable for sellers who were able to unload their properties during the peak.
From a financial aspect, you’re also converting cash into a tangible asset. Yes, most people will typically take out a mortgage in order to finance their home, but the return is far more beneficial compared to simply investing your cash in the stock market.
Owning a property comes with a series of responsibilities that can be daunting at times, but on the bright side, you have complete creative control over the space. You can knock down walls, convert spaces, paint and decorate to your liking, and much more.
On the other end of the spectrum, renting limits your creative capabilities, as you’re required by law to ask the landlord for permission before making any changes. Some individuals rent apartments or houses that come fully furnished beforehand, meaning you can’t even rearrange the furniture or modify the current design layout.
Fixed Mortgage Rate
If you’ve ever rented before, you’ll understand that the landlord holds a lot of power and can essentially increase your rent on a yearly basis and squeeze you for more money. In certain neighbourhoods such as Le Plateau-Mont-Royal, the rent has increased dramatically over the last five years, and investors have started to purchase entire buildings. This has driven out artists and creative individuals that benefitted greatly from the low rent prices before.
To combat this uncertainty, individuals should opt to buy property and obtain a fixed-rate mortgage, which means the monthly payments remain the same on a monthly basis. You’ll typically have to the shell out a 20 per cent down payment in order for the bank or recognized financial institution to provide a fixed-rate mortgage. So, if the condo is worth $400,000, you’ll need to have $80,000 on hand for the down payment.
Are you thinking about buying a condo in the near future? Well, Montreal is the perfect city, and DevMcGill currently has several condo projects under construction at the moment. Whether you want to live in the borough of Notre-Dame-de-Grâce or the Mile-Ex area, we’ve got something that will satisfy your needs. Visit our website or call one of our agents at 514-288-4737.
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