Welcome to the World of Home Buying!
Home ownership is an individual decision. For one person it may be the right thing, for another it might just not make sense. A lot of factors and situations will make up your decision on whether home ownership is the right thing for you. However, whenever I am contemplating a large dollar purchase I like to do my homework and research before making that decision. The fact whether you should rent or buy at the end of the day, may come down to a financial decision and for that I like to ensure I get information from the experts.
Earlier this quarter the Royal LePage Rent Vs. Buy Report was released and it offer some great insights to consider. The release includes insights from economist and housing market analyst Will Dunning’s recent study on the financial benefits of home ownership versus renting.
The study uses price data for 278 scenarios (broken out by city and housing type) across the country, and it assumes the buyer is able to secure a 20% down payment for a home. The study concluded that it is more financially beneficial to buy a home in Canada than to rent an equivalent dwelling over the long term, in 91% of cases.
According to a Mortgage Professionals Canada report, close to half of first-time homebuyers that purchased a property in 2018 or later in Canada, had a down payment of 20% or more. The average down payment for first-time homebuyers in Canada is 21%.
The study also revealed that as of Q2 2021, on average the net home ownership cost was $769 per month less than the cost of renting an equivalent dwelling. Also, even with a 10% decline in home prices over a ten year period, approximately half of homeowners studied would still see a positive rate of return on investment, while the other half would break even or see a modest loss.
Let’s get started putting $769 back in to your pocket and turn your dreams into an Address!!
If you’re considering buying a home or would just like to know more about purchasing a home in today’s market, contact me at 519-824-9050 ext. 235.