Deciding whether to buy or rent a home is one of the most important financial determinations you can make. In many cases, the choice can have far-reaching consequences to your overall net worth and your financial stability. In the Canadian housing market, home prices have been high over the last decade. However, things are changing, and it’s no longer a firm seller’s market everywhere in Canada. Here are some of the top reasons it can be better to purchase a home than rent.
1. Investment in the Community
One of the most overlooked benefits of buying a home relates to the community where you choose to live. For most people, renting is a non-permanent lifestyle. Most renters think about eventually buying a home and see renting as a temporary step related to finances, job location, or personal circumstances. When you buy a home, you can start to establish your presence in the community where you live. Many homeowners build relationships with neighbors, invest in community projects, and create a lasting mark on the area.
One of the most well-known reasons to buy a home is the chance to build equity. As a homeowner, your monthly housing payment toward your mortgage has the added benefit of building up your equity and increasing your overall net worth. In most cases, investing in a home rather than spending money on rent is a wise financial move, especially if you plan on living in the same place for more than three years.
3. Customization Options
When you look at Calgary mls listings, you can see there are countless options on the market. With the great diversity of available properties, you will likely be able to find something that meets your personal preferences for size, architectural style, and floor plan. Once you purchase your home, you have the freedom to make alterations as you like. Many rental properties don’t allow any customization, but as a homeowner, you can make cosmetic and structural changes to turn your home into one that meets your lifestyle needs.
4. Tax Advantages
Another financial advantage of purchasing a home relates to tax credits. The Canadian government offers two potential tax benefits: rebates based on GST/HST and the homebuyers’ amount tax credit. There are eligibility requirements for both tax benefits, but many buyers qualify for at least one. Depending on where you purchase your home, there may be additional tax incentives offered by the territorial or provincial government. You can talk with an accountant or real estate professional to learn more about the potential tax benefits of buying a home.
5. Emotional Benefits
There are also non-fiscal advantages to buying a home. While some renters may feel insecure about their living circumstances, homeowners often feel a sense of pride and accomplishment in their residences. You may make better financial decisions, especially in terms of saving for the future. Having your own home can also generate feelings of security, peace, and satisfaction. Browse through real estate Calgary listings to start picturing yourself making a life in one of the available homes.
6. Financial Growth
Some of the financial benefits of home ownership, including tax credits and equity, are part of a larger trend of long-term monetary growth. In most cases, homeowners can look forward to improved financial stability and increased net worth the longer they own their home. This is especially true for homeowners who can withstand temporary market downturns and keep their homes until the market stabilizes.
As you can see, there are many benefits to buying a home in Canada. You can get the peace and enjoyment of a customized home and improve your financial status as well. Searching through Calgary real estate listings is a great way to start the process of finding the right home.