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Ever heard of Renters Trap? It's a buzz phrase used to identify those of you who are currently renting a house or apartment and feel that you could never afford a home of your own simply due to the fact that you do not have the adequate savings for a down payment on a mortgage or perhaps you may be experiencing credit problems. My advice to you? Stop paying your landlords' mortgage and speak with me! I have the experts that you need to speak with. All it takes is a phone call and let's get you started! There are many ways - and simple ways - to become a homeowner. Likely simpler than you thought!
This year, Ontario consumers can count themselves lucky in one important aspect; they are living in a time that offers un-equalled opportunities to realize the dream of home ownership. Interest rates are among the lowest in decades and the availability of housing of all varieties is at the highest level in years. In fact, in many situations renting a family dwelling can actually be more expensive than buying.
The average home in the East End is roughly $500,000. Add taxes averaged at $3000 per year. As you can see, if you're a two adult family, these payments per month are the average for a decent 2-3 bedroom rental in this area.
Downpayment | Payment per month |
25% | $2,040 |
20% | $2,179 |
15% | $2,314 |
10% | $2,441 |
5% | $2,591 |
There is another important benefit to home ownership that often gets overlooked. Over the course of 25 years (the usual amortization period for mortgages), the total amount of money paid by many renters can actually exceed the amount paid by a homeowner. This is due not only to the fact that mortgage payments can be cheaper than rent, but because rental fees generally increase over the long term. Of course, interest rates may also rise, but probably so will the value of the property. Additional equity in the home will be gained.
Add to this the reality that after a mortgage is paid off, homeowners will no longer make monthly payments while renters will continue to bear the burden for the rest of their lives. This savings can greatly impact your quality of life upon retirement. In many cases, this investment in someone's home IS their retirement. These figures are only intended as broad examples, the fact remains that money spent on rent is still money down the drain.
Regardless of the number crunching, the bottom line is that owning a house is the best way to ensure the happiness and well being of your family. A home gives a family room to grow, and room to prosper. That house proud "its mine!" feeling is always there when you sit in and enjoy your investment daily.
Constructing a ‘buying blueprint’ is a critical step for first time buyers. In it, you will list such items as: how many bedrooms do you really need; is a finished basement a necessity or can you afford to wait; how big a yard do you need; and most importantly, where do you want to live? All these considerations will affect your ability to buy.
So, if you're one of the thousands of Ontario families caught in the cycle of paying rent and seeing nothing in return, now is the time to make a move. Buying a home can pay off in so many ways that you simply can't afford to pass us the opportunity. Let's talk.
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