To buy or to wait? That’s what many would-be homebuyers are wondering right now. And if you’re in the same boat, you’re probably trying to figure out if it’s better to wait to buy a home or if now is the best time to jump into the market.
Short answer: if you’re in a position to buy a home, now is a good time to buy.
Why? Well, right now, the average rent for a 2-bedroom apartment is $2,300 per month in Canada. That’s a lot to be paying for rent, especially if you look at it over a long period of time.
If you pay $2,300 a month in rent for the next 25 years, you’ll end up paying $690,000. That’s a huge amount of money–and it’s assuming that you’ll never see another rent increase, which is highly unlikely.
The worst part about this though is that your landlord gets all of that money. You won’t ever see another cent of it. Once you pay your rent, your money is gone forever.
Now, let’s compare that to owning a house. If you paid $2,300 a month on your mortgage payment, you’ll likely have your house paid off and then some by the end of 25 years. Then when you go to sell that home, you’ll get all of the money you paid into your mortgage back. That’s an easy $690,000! Plus, because real estate increases in value over time, you’ll probably make back more than you put into your mortgage. That’s my favourite part of real estate!
A home isn’t just a place you live–it’s like a giant savings account. You definitely can’t say that about renting.
And I’m not sure about renting, but I know I would much rather get money back when I sell my home rather than having it all go into a landlord’s pocket. If you’re ready to put your monthly rent payment to work for you, then it’s time to buy a house. Reply to this email, and I’ll get you set up with a few resources to get you on the road to becoming a homeowner!