- Is owning an investment property in Port Stanley, Ontario profitable?
- Erin, I love your enthusiasm and drive to learn more about real estate investing; especially through home buying. As always, I appreciate getting updates and sharing great content like this. Thanks so much!
I get excited every November 11th to celebrate Canada Day because there will be no Canadian dollar in use anymore after December 31st, 2017. So, you can go ahead and order anything you want during those eight months leading to January 1st, 2018 in terms of price and currency value. Just remember to double check if taxes are due until then.
So, while prices seem higher now than they did prior to October 17th, just keep in mind you won't pay them when you'll actually buy something in February. But hey, that's okay because we're still living in a housing market recovery which we haven't seen since 2009/2010. Here are some stats showing why you should consider getting into homeownership sooner rather than later…
1. A record low interest rate environment... [IMAGE: Rate chart from Bank of Canada]
2. Interest rates continue to fall.
3. Prices are increasing.
4. We've heard the supply shortage rumors and warnings but they remain unfounded. Housing demand continues to exceed the available inventory of properties in various parts of Toronto and Vancouver. And as long as people can afford to borrow, demand isn't going anywhere anytime soon.
5. People who rent don't save anything either and don't understand the benefits of saving for retirement and building wealth.
6. There are many ways to invest beyond traditional stocks and bonds. Investing outside your 401k makes sense to diversifying your portfolio away from only holding large cap stock companies, and adding other assets to increase returns.
7. Millennials prefer homes instead of renting and owning. They already live longer lives than GenX, Baby Boomers and older generations and see themselves spending most of their working life paying down debt. Owning property gives millennials financial freedom and security so it's easier for them to imagine retirement without having to worry about being able to afford rent payments each month. Plus, they'll eventually move out once kids enter school fulltime.
8. Canadians love to travel and own houses in different locations. Why settle? Moving costs are lower today than 10 years ago and the internet makes finding deals easier. Also, many realtors promote "relocation" as a benefit of buying a primary residence in a desirable area.
9. If you need cash for renovations, house improvements or emergencies, buying a home can help generate passive income quickly. For example, you could purchase a single family detached house in Port Stanley for $150,000 and sell it for around $200,000. Then over five years, you'd earn 3% rental appreciation annually over $10,000 per annum ($100 monthly). Add another couple years' worth of capital gains tax receipts in excess of $30,000 and that same house would have provided $120,000 in passive net annual return - an improvement over putting the extra dollars towards savings in another account. Now factor in a mortgage payment, utilities, insurance, maintenance and repairs plus HST and you’d probably spend less than 5 hours per...
- New Home Port Stanley Buying 101
- Before starting this guide, I would like first introduce myself. My Name is John D'Aloia and I am an experienced realtor who specializes in helping buyers navigate through the complicated process of finding homes for sale and investing in property. I've spent years studying the industry and I'm ready to help my readers understand everything they need to invest successfully.
In order to be able to answer the questions posed above we must first define the terms "Home Buying" and "Investing". A new term "Buying Property" will soon take shape.
When someone refers to "home ownership", what most people actually mean is "owning a house/condominium". However, owning a house does NOT always equate to being "homeless" or having no place to call 'HOME'. There are many different types of housing options available in today’s society including renting an apartment, living in a condominium, and owning a home or other type of dwelling. Each option offers advantages and disadvantages depending upon which one fits your needs. The key point to remember is that each option provides some measure of security and stability in life; but none offer the ultimate sense of HOME that only owning a residence will provide.
So why should anyone consider buying a new home instead of just staying in an existing rental? Here's an explanation...
If you're thinking of making a purchase and don't really care whether its a single family detached, semi attached, townhouse, duplex, triplex, fourplex, sixplex, eightplex, nineplex, tenplex, elevenplex, twelveplex, fourteenplex, fifteenplex, sixteenplex, seventeenplex, eighteenplex or twentyfiveplex then you probably shouldn't bother reading this article because chances are you'll find yourself bored. On the positive side though, you won't get stuck paying rent every week. The negative part is that you won't experience the joy of moving into your own home; nor will you get the satisfaction of seeing your place become yours and eventually becoming part of your history. If this sounds familiar, you'll enjoy knowing that there are ways around this problem. For example, if you live outside the Greater Toronto Area then you can buy your dream townhouse in another city. Or perhaps you'd rather move closer to work than farther away from work. Either way you're going to save some cash on rent while enjoying a lifestyle similar to that offered by homeownership, only without the hassle.
Another reason for considering purchasing a new home instead of continuing to pay rents is that owning a home gives you greater flexibility and control. Renting an apartment usually requires you to adhere strictly to a lease agreement. This makes it impossible to break out of the cycle of paying rent and getting nothing back except the promise of continued monthly payments. By contrast, buying a new home is completely negotiable as long as you can afford the down payment plus closing costs, taxes, insurance and maintenance fees. And since you're the owner, you're responsible for everything. So there's little danger of falling behind on your mortgage payment. Plus, once the deed is transferred you can legally sell the house anytime you wish.
Finally, if you decide to go ahead and purchase your own home, there...
- When buying a new home in Ontario follow these steps
- 1. Start saving for a down payment first. If you decide to purchase a fully developed property with land and infrastructure ready made, then this will be cheaper than buying individual lots like in rural areas. But still remember to pay attention to where you live because some places are known for flooding while some are great for recreation.
2. Create a wish list. Don't go overboard thinking of every detail. Just write down the essentials so that way you won't miss anything important. Remember less is more and sometimes things just fall through the cracks, especially with house hunting during the holidays. So your checklist should include everything from floorplan layout, amenities, proximity to town centre, schools and bus routes/train stations. Be specific; no generalities please.
3. Visit real estate websites. There's always something happening when searching for homes online. Websites like REALTOR® Canada, Trulia®, ReMax®, RBC Royal LePage® Real Estate Network Inc. [RE/MAX], MLS® Multiple Listing Service™ or other regional sites provide detailed information about properties, listings, prices, nearby communities and market trends to help you narrow down choices quickly.
4. Do your homework. Once you've got a solid idea of what type of neighbourhood you're interested in exploring, contact local agents who work closely with buyers and sellers. They'll keep track of upcoming community events, school openings and closings, sales history and current housing price trends, among many other considerations. When working with these professionals, they'll tell you exactly when houses in these neighbourhoods sell and why. Their experience helps them understand things quicker than those without a local connection.
5. Consider renting first. While owning a single family residence is highly desirable, a good rule of thumb is to buy if you qualify financially, but rent until you figure out whether city living suits you. Many families enjoy spending weekends away from city life and relish having space to run around, while others thrive in busy cities where everyone knows each other and kids play together after school. Rentals come in several forms -- apartments, condos, duplexes, semi-detached dwellings, high rise buildings and detached homes. Each offers certain advantages. For example, rentals typically cost slightly less than owner occupied properties. And unlike mortgages, rents usually aren't paid monthly so you only incur costs once per year.
6. Meet your needs. As soon as possible after making your decision, get preapproved for financing and find out which lenders offer competitive rates. Depending on the size of your loan, finding financing shouldn't take long but getting started early lets you save time and energy dealing with financial institutions, and makes it easier to negotiate lower interest rates. Also ask yourself upfront if you really need a mortgage with fixed versus adjustable payments or if it matters if you use term insurance instead of whole lot coverage. Ask questions when speaking with lenders. A qualified professional can help explain terms and answer common queries.
7. Research builders. Find out details on different types of developments including custom built (built specifically for you), traditional subdivision (where homes look similar), suburban tracts (similar to subdivisions but closer to main streets). Builders develop new neighborhoods in established regions, often in close vicinity...
- How to find Your New Port Stanley Home or Condo
- Ontario real estate market continues to thrive because of rising interest rates, high immigration levels and increased demand for homes due to population growth and the aging demographic. We will highlight these factors in this article along with other key trends and developments taking place across Canada and around the world which should help buyers make the most informed decision possible when choosing whether buying pre-owned or building their dream home.
We begin by explaining why investing in property remains attractive despite the current economic uncertainty. Interest rates continue to be relatively favorable and they could increase further after reaching historic lows during the financial crisis. As well, home prices remain strong while rental yields still lag behind historical norms but show signs of improvement.
Rising interest rates and historically low mortgage rates provide incentive for homeowners who wish to sell their existing properties and purchase newly constructed residences. Meanwhile, many investors see buying residential property as a safer alternative than stocks and bonds since the value appreciation rate for houses exceeds stock dividends and bond returns.
Finally, demographics play an increasingly influential role when making decisions on where you live. The baby boom generation in the U.S., Europe and China continues to age, thus shifting demand from traditional cities like Vancouver, Toronto and Montreal toward newer markets such as Calgary, Edmonton, Winnipeg and Ottawa. Furthermore, people are flocking back towards urban areas, which makes housing a great long term bet given that there aren't many good places left for them to relocate.
So what does all of this mean for Canadian real estate? Is it safe to buy a house or invest in the industry? Let's take a quick look into some facts about the housing sector in Canada which will hopefully answer those questions.
[IMAGE: Image showing current price per sq ft in downtown Toronto versus average rent cost ] [IMAGE: Average monthly income and debt ratios by region in Canada][IMAGE: Median household incomes by province / territory]
Canada: A Great Country For Investing in Housing
In 2017/2018, Canadians continued to enjoy solid job creation, low unemployment and healthy wage gains. According to Statistics Canada, inflation remained muted in 2018 with headline CPI only increasing 1% in January and February. However, the Bank of England recently raised interest rates to 0.75%, which is higher than the 0.5 level in Canada. While many countries saw their economies shrink in 2019 due to political instability with increased protectionism and trade wars, Canada maintained stable GDP growth. Moreover, Canada was able to maintain an annualized pace of 2.7%.
Meanwhile, Canada experienced record levels of immigrants arriving annually in 2015, 2016 & 2017 totaling almost 350K. As a result, the country saw its largest immigrant influx ever recorded. These foreign workers brought significant capital spending in sectors including tourism, agriculture and mining, helping boost overall employment growth. Additionally, the country had a net inflow of $19 billion dollars in foreign exchange reserves. All things considered, Canada boasts the highest credit rating among G8 nations and has a low debt burden relative to its large economy.
Furthermore, there are several positive indicators pointing towards a sustained recovery in the Canadian housing market going forward. First, the government announced a series expansion of affordable housing units under the "Housing Infrastructure Plan 2020" in February 2020 to...
- Why is Ontario's Real Estate Market Booming?
- If you live outside of Canada or aren’t interested in buying property with land value appreciation potential, then you will be better served taking part in the Canadian real estate market today than waiting until next decade like most other people who buy properties hoping they someday increase dramatically.
While most investors would love to say “I bought my dream house back in 2002/2003 and now I am super wealthy”, the reality is different depending upon whether you bought during the housing boom, after the bust or somewhere in between.
Here’s why investing in rental units can make sense for the long term, regardless of which phase of the cycle you invested in:
Income streams vary significantly according to location but many locations offer a consistent monthly income stream (and therefore cash flows), regardless of weather conditions or economic swings. Unlike selling homes that could take years to sell, a great deal of rental income is generated immediately. If prices continue to rise, rents will follow suit.
Rental Properties Have Potential For Land Value Increases
Land values typically appreciate at double digit rates annually while average incomes often remain flat to down due to inflation pressures. A well maintained single family detached residence can potentially generate annual increases between 15-40% every 5 years. On top of this, you get 100% tax credit against rent paid each year towards mortgage interest. So essentially, if you own a rental unit, it pays for itself many times over.
Real Estate Markets Move Together And Separate At Different Speeds
Investing in rentals does not guarantee wealth creation over time but the longer your wait period, the greater likelihood you miss out on gains made by those ahead of you in line. However, if you missed buying opportunities in 2007/2008, 2008/2009 & 2009/2010 you probably won’t notice much difference from 2007/2018. But if you waited till 2015 to invest, you almost certainly got beaten up badly. The same logic applies today.
Most people that purchase multiples of $500K properties expect them to double in price in 3 years. Most experts advise against this because it usually ends in tears. Many buyers end up losing money instead of making profit in the short run and sometimes for decades at a stretch.
Instead of investing your retirement funds in the hopes of gaining 20+ per cent returns yearly, consider putting your future away in something that generates cashflows and capital growth rather than speculation which tends to pay out losses instead of profits.
Wealth Preservation Through Income Stream Creation
Many retirees, especially early in their careers, are concerned about building enough savings to retire early. While this isn’t impossible, having enough saved up beforehand may mean sacrificing a portion of your lifetime net worth through taxes and fees incurred earlier in life. By renting income generating assets during these key working ages and paying lower rents throughout retirement, you may be able to avoid taxes altogether. This way, your investments provide you with sufficient cashflow and income throughout your career without requiring a large upfront sum. In addition, owning multiple rental properties gives your children a valuable inheritance, while leaving your estate intact for heirs, without requiring huge initial sums that can otherwise leave little left for your kids and grandkids.
This article was originally posted...
- New Construction Investment Opportunities in Port Stanley Ontario
- In 2018 the average price per square foot across Canada was $432.00. However, prices vary widely depending on location within each province or territory. For example, in British Columbia, the average price per sq. ft. was $547.00 while Alberta had the lowest average price with just under $250.00 for every 100 sq feet.
For this edition I decided to use my experience living through the housing crisis during the 2008/09 recession. As I write this article, real estate values continue to increase in many parts of southern Ontario including Ottawa, Toronto, Hamilton, London & Kitchener but remain flat or even decline in other markets. Prices are still well below pre-crisis levels, however they will eventually return to those highs.
I believe that the market is going to continue to improve in most areas of Southern Ontario and even possibly some parts of Northern Ontario but there are always risks associated with buying property especially if you buy near completion. If you purchase a house during these times it could be years until it sells for full value, if ever. So buyer beware!!!
The first step to investing in real estate is finding the perfect property, which may include researching online listings in multiple websites to find exactly what type of place meets your needs. Once you have found something interesting you must then decide whether or not you should invest in that particular property. There are several things to consider like; size, condition, neighborhood, etc.
When deciding which properties would meet these criteria, you may wish to take advantage of professional assistance. A good Realtor can help you narrow down the search and find exactly the right fit for your family. They will also provide valuable insight on current trends so you can determine the likelihood that a certain area is experiencing increased demand or decreased supply.
If you decide to proceed further, you will need to obtain financing. Depending on your situation, you may qualify for government funding. This includes grants for people who live outside of cities and rural municipalities. You will also be able to apply for private mortgage insurance, which protects lenders against loss in case of foreclosure.
Another thing you may wish to consider is the tax implications. When you sell, capital gains taxes will apply. These are calculated differently depending on when you purchased the property and what your holding period is.
Finally, once you have determined that the time is right to begin making investments, you will need to select the best brokerage firm and agent that fits your personal style and preferences. You will need someone knowledgeable enough to understand the complexities of the industry. Someone familiar with local regulations and procedures to ensure the transaction runs smoothly. And finally, someone willing to listen to your concerns and provide guidance throughout the entire process.
Websites: pinterest.ca, googleusercontent.com
Blog Title: The Top 10 Most Used Mobile Search Engines Of 2019
Blog Descrption: A list of top mobile search engines used around the world. Learn why these sites rank high among their peers. The top ten list contains only those search sites that use Bing as the primary engine behind their rankings.
Featured Images: Yes
Section Titles: How Does Your Site Rank On Each Listing Page...
- Examining Real Estate Market History in Ontario
- Are you planning to buy your first piece of real estate? We understand buying a home can be overwhelming but don't worry; this article will get you started on making the most of your purchase. If you're like us then you've got some questions that need answers. Questions like "How long does the house inspection take?" "Should I pay cash or use my equity loan?".
We'll answer those questions along with many other crucial issues related to investing in property. So keep reading because this article contains everything you need to know about purchasing your dream home.
What's covered in this article?
[IMAGE: Property Map showing locations in Port Stanley, Ontario ]
Why should you invest in property?
Real Estate Investing offers great returns and stability. There are no risks involved, since the value of properties increases over time.
This makes real estate a safe way to save and earn extra income without being tied down to day jobs. Plus, it provides opportunities for growth through rental and flipping houses, which could increase your net worth significantly.
If you decide to flip houses instead of renting them out, expect to receive higher profits than if you simply invested in rentals. Also note that it takes longer to build wealth when starting with a small amount of capital versus flipping homes.
When you buy a home outright, you'll be able to enjoy lower taxes. However, since you won't incur interest costs, it will cost you less to rent your investment than to own your own home.
Is renting cheaper than owning a home?
Owning a home is not always better financially due to mortgage payments. For example, a family who purchases a house at $200K would still owe around $100-$150K in principal plus monthly fees regardless of whether they rented or bought a place. Rentals on the other hand, only include paying the fee, leaving owners to deal with maintenance costs, insurance premiums, utilities, repairs. And if something happens while you're away, tenants typically aren't held responsible for fixing things. But of course, buying a home means having your hands in both sides of the equation.
Where can I find information on my area?
You can easily search listings online at websites including Trulia, Realtor, Zillow and Redfin.
Also, check out Realtor Canada's interactive maps section which lets you see all active MLS® listing by address.
Do I need a financial adviser?
Yes. A good financial advisor knows exactly what type of investments work well with each individual's unique situation, and they will advise accordingly. They can help avoid costly mistakes and ensure the right decisions are made.
[IMAGE: Google Maps displaying the areas surrounding Port Stanley, Ontario.]
[IMAGE: A map of real estate prices in Port Stanley, Ontario ]
How long does an Inspection Take? Will My Mortgage Work Out?
An inspection usually lasts anywhere from 5 minutes to 1 hour during which the inspector reviews the condition, layout and systems of your proposed residence. It's common for inspections to happen every 2 months or once per year depending upon location. An average price range of homes sold varies from city to city and ranges between $15,000 to $60...
- Getting approved for your New Home Purchase in Port Stanley, Ontario
- In recent years, the housing market seems to be rebounding after the Great Recession. Prices continue to climb across most markets, while interest rates remain historically low. As long as these conditions persist, there should be little reason why someone interested in investing could not take some advantage of them in Ontario’s real estate market.
The key word being “investment”. Buying a single family house isn’t really an investment per se, but buying several houses together does present opportunities. A group of four homes purchased near each other can provide investors with a substantial profit margin.
This was certainly true prior to 2007, but things changed dramatically during those six short years after the financial crisis hit. Since then, banks became increasingly reluctant to lend money due to tight regulations. Lenders would rather sell loans for pennies than hand out mortgages. So what happened? Well for starters, banks stopped offering mortgage financing altogether for many properties. They simply wouldn’t touch anything associated with residential lending. Even though they weren’t technically forbidden from doing business, lenders had no incentive whatsoever to risk going bankrupt themselves because it wasn’t worth it. And this left many buyers without options. Many people who wanted to buy a residence couldn’t find anyone willing to finance the purchase.
[IMAGE: Screenshot of Erin, ON Real Estate Price Trends]
But things don’t stay stagnant forever. After almost 10% declines in prices from 2014 to 2016 alone, sellers began feeling confident enough again to raise selling price levels once again. The result is that you see sellers starting to get back out in front of buyers again. And this is exactly what I mean when I say they are getting bolder. In fact, we saw sellers increase asking prices up until July 2018, only to begin seeing them drop again ever since.
So what kind of numbers are we talking about today? We haven’t seen huge increases like we did pre-crisis, but I am certain prices will rise steadily over the next few decades. For example, according to statistics published by the Canadian Real Estate Association, average home sales prices increased 5.6% nationwide in April 2019 compared to 12 months earlier; however, this figure actually dropped 2.2% in the Toronto area compared to May 2017. If the current trend continues, it won’t be too far fetched to expect average values to reach $1 million sometime around 2030 or 2040.
While we don’t yet understand why prices keep falling, my guess is that we aren’t quite ready to return to normalcy just yet. There are still lingering effects from the 2008 recession, including high unemployment and underemployment rates among younger generations. But in addition to this, many young Canadians simply can’t afford a down payment anymore.
For instance, a 25-year old with minimal savings who wants to live in a city centre apartment will probably find it impossible to put together enough cash for the required down payment. Instead, they end up settling for something else. Either that or they move further away from downtown areas to places where rents aren’t so expensive. Or perhaps they rent...
- What makes Xondo Ontario's Most Convenient New Condo/Home Buying Platform?
- Xondo Canada was founded based on a strong belief to empower Canadians through an online property search experience which caters to their needs by ensuring they find homes within reachable suburbs & communities.
We have created Xondo Canada’s most convenient way to purchase a newly constructed home without having to drive around town searching for properties of interest; instead they simply use our website to view houses for sale along with photos of homes available, read floorplans, see neighborhood maps, contact real estate agents who work for us in each community and request further details regarding specific homes with their agent of choice.
Our unique approach combines convenience and simplicity making this a perfect fit for busy people with no time but plenty of things to get done during weekends.
All you need to do is complete your profile information while browsing homes and select what type of home would be ideal for yourself along with some optional questions like “Are you moving soon? Where will you live after closing?” Once you submit your personal profile you instantly receive responses from local brokers and get access to multiple listings per day to browse through them until deciding upon a suitable house of interest.
[IMAGE 1:] Our team of professional Real Estate Agents help every client buy homes across Port Stanley quickly and hassle-free because we understand just how frustrating buying a recently built house can be especially for first-time buyers whose lives are already hectic enough. We provide detailed reports for each property including price trends over past few days / weeks and other useful tips to assist you in finding a place you love. The best part is you won’t ever go back to traditional methods since all this happens through the intuitive navigation bar accessible via mobile phones, tablets. For those who prefer hands-on experiences our team members are always ready to serve you and ensure you close deals smoothly and successfully.
[IMAGES 2/3:] When choosing a location that is suitable and convenient for both you and your family, it might be necessary to consider factors such as climate, proximity to amenities, infrastructure, schools, employment opportunities, medical facilities, parks, recreational areas, shopping centres, transportation options, nearby places to visit, commuting times & distances, etc.
When finding a city like Port Stanley, Ontario, these criteria play an integral role in determining whether investing in a particular area could prove beneficial for you long term. If you wish to take advantage of the benefits offered by new housing developments along with the added peace of mind knowing you purchased something safe, sound and energy efficient then XONSO offers the ultimate solution. All you need to do is enter your postal address and click Search Homes located near me so you can explore neighbourhoods nearby and discover information about each suburb you desire to purchase a residence in. Feel free to check out specific neighbourhood locations and use interactive maps to learn more about the surrounding area and determine the distance to everything you love about living in Port Stanley.
[EXCERPT FROM THE GUIDEBOOK:] Here’s a quick summary of why XONDO should become your preferred source of acquiring a new house anywhere in Ontario:
1.) Low Cost: Unlike competitors who charge high commissions & fees of 3%+ XONDO is extremely affordable. Their flat fee model...
- How Xondo makes Home Buying & New Construction Investing in Port Stanley Easy?
- XONDOWas founded in 2013 and launched across Canada in 2014. Our mission was and still remains; to help Canadians find property quickly and efficiently. We offer clients a powerful search engine which combines real estate listings, maps, videos and other relevant information, making searching the Canadian market quick and easy. Since inception, we've helped thousands find exactly what they're looking for online. Today, we continue to provide unparalleled service while expanding internationally to meet the needs of international buyers. As a company built upon technology and innovation, we continually seek to bring the client experience forward through innovative solutions.
Home buying isn't always just as straightforward as finding property on Craigslist or Zolo, especially since many properties aren't listed publicly. If you’re interested in selling your own home, you should be able to get in touch with multiple agents who work together under a single brokerage firm, allowing them to collectively represent all parties in your sale — a great way to ensure you receive top value for the house and avoid wasting precious time dealing with individual agents at different firms.
For those of us living outside of Toronto though, things are trickier. Even if you live in a bustling city like Ottawa or Vancouver, chances are you won't be near enough properties available for purchase. And because there's no central database of homes currently being sold in these areas, your options will often come down to calling around until you stumble upon something suitable. There are ways to overcome this challenge though. For example, the MLS system in place in most cities gives brokers a direct line to property owners, ensuring you'll have some insight into whether or not a specific listing would be suited to you. However, the sheer volume of potential houses makes navigating the MLS daunting on its own so it only makes sense to rely on experts to assist with sorting through the vast amounts of data available to them. Luckily, technology provides a solution. XONDO has developed a proprietary software program called HomeVantage that acts as both a virtual agent and personal concierge — meaning it will automatically match users' preferences with available homes from which they could buy. By eliminating the manual effort required to manually trawl through countless pages, HomeVantage streamlines the entire process and ensures you spend less time browsing the internet and more time enjoying life.
To learn everything there is to know about the benefits of using our website, please visit https://www.xondoweb.ca/.
- How To Make Money On a New Home or Condo Purchases in Port Stanley, Ontario
- What exactly makes a home purchase worthwhile? Is it just the idea of owning property and having something tangible tied to your identity; or is there potential to earn some significant cash along the way through real estate investing, rental properties, flipping, land purchases or development projects?
In this post, we discuss these opportunities and provide guidance on which strategies will be most suitable for you given your particular situation. We also explore some ways you could possibly make extra income beyond simply enjoying life through ownership of your own place.
For example, you could potentially start saving to buy and renovate your first house in 2022, but decide instead to rent that space to tenants who generate revenue while you continue building equity in another part of your portfolio without putting yourself under financial strain. Or perhaps you live somewhere else already where rents aren’t quite high enough to justify taking the plunge yet, and renting out your spare bedroom would help offset expenses until things get better? Whatever your situation, we hope you find our suggestions useful.
Purchasing a new home or condominium provides many benefits besides improving ones living environment. Owning property affords greater freedom than ever before since you no longer need to depend exclusively upon anyone else’s good graces every day of the week. Having the ability to move around freely gives you great independence and helps develop self-confidence, both crucial attributes during early adulthood to become independent adults who stand tall among peers and other people of different ethnicities, religions and backgrounds. And being able to call your own shots as well, rather than needing to ask permission each time, creates peace of mind and a feeling of pride when dealing with family members, friends and colleagues alike.
Ownership also offers several economic advantages, including increased tax savings due to depreciation deductions and higher capital gains rates. Some experts suggest that buying a home costs 5% less per dollar spent than staying in someone else's basement, while another study found that homeowners pay 1%-2% lower mortgage payments because they have the added benefit of reduced maintenance and repair bills. Other studies report similar findings related specifically to condos. These kinds of figures are certainly worth thinking about, especially for young families.
While you won't see big returns on average in terms of making money with real estate investments in Canada, those who take advantage of various options available today should still be reasonably pleased come 2027–and after that, if you're willing to wait a bit, even more satisfied. Here are some additional thoughts to keep in mind...
1.) There Can Be Big Wins When Buying A Home Or Property Nearby Your Current Residence
Of course, the main advantage of choosing to invest in residential housing is that it helps you save more money through mortgage interest deduction claims and allows you to increase your net earnings annually. But if you actually live nearby, you'll enjoy certain perks like improved property value appreciation, a smaller commute thanks to fewer travel hours required to reach work, and easier commutes via transit or carpool lanes. On top of that, living near your current residence often requires far less energy consumption than commuting long distances.
This particular perk applies only to primary residences though, which explains why condos tend to be popular with younger,...