Choosing the location and type of condo unit you will live in is an important decision, as is the choice to become a landlord or tenant. Once you’ve determined the ideal location of your new residence is indeed the new Laval downtown (we can understand you, with the Centropolis and easy accessibility!) and that a new unit is your preferred choice (nothing better than brand new!), all you have to do is figure out the right choice for you in regards to buying VS renting. You will indeed have to consider several elements in order to determine if renting or purchasing is the right choice for you, depending on your personal situation. Here are 5 good reasons to buy your condo instead of opting for rental.
1) Rental cost is often equal to the cost of a mortgage
We frequently hear that leasing helps you save on costs associated with purchasing, like notary fees, municipal and school taxes or even repairs. However, it is important to note that these costs are commonly included in your monthly rent without being clearly detailed in your lease. Furthermore, with rental prices constantly rising, the monthly price of rent is often comparable to that of a mortgage payment… With one difference: rent may very well increase each year to renew the lease, which is not the case of a mortgage.
At equal cost, the most important factor is the length of ownership of the condo. In some cases, it becomes more profitable to buy rather than rent in just a few years. There also are several tools on the web to help you compare the purchase and lease according to your financial situation and your dream condo. After you complete your calculations, you’ll quickly realize that purchasing can become a more interesting option than renting.
2) Buying represents an investment, compared to an expense for a lease!
It is a well-known fact that leasing is often viewed as throwing money away. Since the payment of rent is similar to a mortgage payment, why not transform it into an investment that will become profitable later? When leasing, you do not build equity, unlike the value of a condo that increases and becomes a real estate asset that evolves over time. You can then take advantage of the increase in property prices and see your asset’s value grow.
3) The real estate market is in good health
Several events impact the real estate market. Bank of Canada’s interest rates and mortgage rates fluctuate depending on the economy and can affect your investments. That being said, regardless of the health of the economy, buying a property is a long-term investment. Moreover, the year 2018 was a record setting year for the Quebec real estate market and Laval is among the regions with the highest number of transactions (source: FCIQ). Take advantage of the opportunity and invest in Laval real estate!
4) Enjoy the benefits of owning a condo, with decision-making power
Living in a condo building has a lot of advantages, but when you’re a tenant, you don’t have decision-making power. You can share your improvement ideas and suggest ways to eliminate annoying situations, but the final decision will be made by the owner. As a tenant, you don’t have a say during owners’ meetings. You will avoid a lot of frustration by owning your own condo.
In addition to being able to influence the social life in the building, as an owner you have the privilege of choosing the look and options of your living space. As a tenant you must visit several condos before finding the decor that suits you without compromise, which is rare. Avoid unnecessary visits and come create your dream condo by choosing floors, kitchen cabinets, counters and more.
5) Financing flexibility
For the majority of people considering an investment in real estate, financial capacity if often the decisive factor that will help initiate the purchase or lease of a home. Down payment is the major obstacle for Quebeckers considering that 1 in 3 Quebeckers lives from one paycheck to another (source: Canadian Payroll Association (CPA)). Fortunately, financial institutions have several options for people who do not have a lot of savings. These solutions are available for future owners, whether through the use of a RRSP, mortgage insurance or the support of those around you.
Still not convinced? Contact our team with any question or to visit our model unit and secure your VIVA dream condo now.
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