Should I Rent or Own?

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Why are you still renting?

Not sure if you should take that next step?

If you’re currently renting consider the following reasons why you should seriously look at becoming a home owner. Most of the reasons can be quantified and calculated to directly show the benefits and profits that you can achieve over time as a home owner. And yet the major reasons why you should buy, can not be easily quantified. What price can you put on self worth, confidence, pride, safety or security, not only for you but also for your family. As a business owner the advantages of home ownership become quickly and clearly evident on your annual tax return, and with the help of your accountant and financial planner you can use the equity locked within your home to start building a future retirement plan.


Safety and Security

The most important reasons are the ones you can not put a dollar value on. Consider the fact that you will become the master of your domain, you will not get a letter under your door for a 24 surprise inspection, 90 day eviction notice or beginning of the month knock on your door, looking for rent check. Or maybe your lease is up, and the landlord will surprise you with a hefty rent increase. Will you pay, argue or pickup and move? Uprooting your family, changing schools, utilities, mail, etc, because your being chased away. And now if you could just get all of your damage deposit back. Finally when you find that new place, do you have to beg or argue to get things fixed, were the door locks changed or will you have old tenants buddies come to visit. If the basement suite is rented, get to know your new friend, because next month it could be someone else, and you have nothing to say about it.

Tax Deductions

If you are a business owner you can deduct your home office expenses, including portion of your mortgage interest, utilities, telephone, fax, internet computer how about furniture and don’t forget the new paint. (Please seek advice from your accountant for your specific situation)

Instant Liquidity

Unlock the capital within your home, with a secured line of credit, now you can easily access money for any emergency that life may throw at you, or maybe its time to renovate, buy a car, rental property, and after use the money to take a vacation. Well of course you have to pay it back, but its minimal interest, and only on the amount you borrow, it’s a well of money which you can instantly tap into, and you don’t have to ask for a bank loan each time and jump through hoops.

Value Improvements

What other investment allows you to increase its value by putting in sweat equity? Answer NONE, can you increase the value of your Stocks, Bonds, Mutual funds RRSP etc. not even if you swept the banks floor at night. When you install those new floors, kitchen cabinets, windows, furnace and enjoy the befits they offer, you also directly increase your homes value, and when you are ready sell or refinance for a loan, you get a greater return for your money.

Built Equity

Paying rent is like burning your money, you receive nothing in return. When you pay your monthly mortgage payments, the principle part goes directly against your loan, increasing the capital that is locked within. Improvements will also increase the value of your home, and as the real estate market naturally forces prices up, your home will again rise in resale value.

Renting Values Breakdown
How much money are you actually losing?
Taking into account 6% annual rent increase every year
(increase is based on inflation, utility costs, tax increases, and needed improvements)

Be in Control

You decide how much you will pay and how often. You can adjust your loan amount to be amortized between 10 to 25 years, which will directly effect your monthly payments. You can control the frequency of your payments, monthly, biweekly, or weekly, and pay less interest rate over the duration of your loan. You can double them up or make anniversary balloon payment directly against the owing principle, and if necessary ask the bank to defer your payment, try asking your landlord if you can skip a month. You can renegotiate your rate on anniversary dates or leave the mortgage open and lock it up when you decide, now that’s control.

The decision is yours to make, we hope that you realize that the reasons for you to become a home owner greatly outweigh the fears that support your reasons to continue renting. If you have any question or concerns call the office at 780-456-6300 we are here for you. If you would like a hardcopy of the above information click here to download and print.