Step up to home ownership
This guide may help you decide if your choice to buy a Cowichan Valley home is the right choice for you. Buying a home, especially your first home, can be stressful but it’s also exciting and a lot of fun. There are differences between owning and renting and each have their own advantages and disadvantages.
- Are you financially stable? A steady source of income and a clean credit report are the basic requirements for a lender to consider your application.
- Can you afford the mortgage, condo fees, and maintenance? Sometimes owning is a little more expensive than renting. Let’s make an appointment to look at your budget and see what sort of properties might appeal to your lifestyle and goals. You might be surprised at the options.
- Are you interested in maintaining a property? Even a condo requires basic maintenance like flooring, appliances, electrical, and plumbing.
- Can you afford to buy in the areas you like? If your budget is limited, it may be necessary to consider areas outside of your preferred location. For example, a longer commute to work can mean major savings in the purchase price, to buy a Cowichan Valley home compared to Victoria, for example.
Renting vs. Buying
Renting is easy and the most flexible option because you can move when you want and repairs are the responsibility of the landlord. The downside is that you have to move if the property sells. The advantages of renting include:
- Lower overall costs, no down payment or property transfer tax
- Potentially better quality housing than you might be able to buy in similar areas.
- No maintenance
- Move when you want
- Opportunity to make investments in other assets
- No risk during financial downturns
- No property taxes
Buying vs. Renting
Often buying a home is simply a less expensive option compared to renting when appreciation, mortgage paydown, and rent increases are factored in however owning has more responsibilities. Advantages include:
- Financial growth through equity or forced savings
- Leveraged investment with low down payment
- Control of your space to decorate or renovate
- Payments that actually decline compared to renting through the life of the mortgage
- Sense of pride in ownership and a feeling of stability or putting down roots
Interested in more information on how to buy a Cowichan Valley home? Contact Constantin and Mariana Popa today.