Top Reasons to Convert From a Renter to a Homebuyer
As more twenty-somethings enter the workforce after college, their earning power increases almost exponentially. They might have been renting an apartment for the longest time, such as during college, but now they have a more permanent position in the community. Although renting is a simple way to get by, you benefit much more when you own property. Consider these top reasons to convert from a renter to a buyer. It's time to look at your life as a solid earner and investor.
Rents are on the Rise
When you're a renter, you have no control over your monthly payment. That amount might go up every year on the anniversary of your move-in day. Essentially, you're paying the mortgage of that landowner. Rents aren't dropping any time soon in Canada, and they're reportedly increasing. Take control of your finances by purchasing a home. You select the home price and associated loan, and those numbers don't change during the contract period. The only fluctuations in monthly charges might be from taxes, but the changes are normally minimal.
Job Markets are Steadily Improving
Employment trends were disheartening only five years ago, but today's job market looks lucrative. More employers are hiring today than ever before. Industries are building strong sales, service and office departments in order to serve their customers. If you have a college degree, you may need to pick from a handful of jobs that require your expertise. Because jobs are quickly becoming plentiful, you'll have the income that's necessary for a home purchase. Simply show a lender your steady income, and a home loan can be quickly arranged.
City Living Isn't Necessary
You might rent an apartment in Toronto, but the monthly charges are expensive. Buying a home in the city is expensive too, but there's no reason why you can't look to properties that are further from the city lights. Look for homes that are on the city's outskirts. You'll be able to have more square footage and a quieter neighborhood compared to a small, city apartment. As you grow older, you'll probably want a home nestled away from the city noise anyway.
Wealth is Inherent to Real-Estate Purchases
As a renter, you aren't building any wealth. You're actually helping the landowner gain his or her wealth. Buy almost any home, and you have the potential for significant wealth. If you ever pay off the home or sell it for a profit, you're gaining much more from the property than just shelter. Starting early with a home purchase simply gives you more time to accumulate extra wealth.
Decorate your purchased home with any materials or colors that you desire. Renters have no say about their home's decor, and this fact is enough to drive people to a real-estate purchase. Add accent walls, install new fixtures or construct an outdoor deck when you purchase a home. Your imagination is the only limit after a home purchase.
Interest Rates Continue to Stay Steady
Interest rates are controlled by the government. Currently, they're relatively low and may remain there for a few more months. In the future, however, these rates might soar. Take advantage of the good interest rates, and buy a home. You'll lock in a fixed rate that serves you well until it's paid off.
Because this is your first property purchase, it might be necessary to have a cosigner on your home loan. Ideally, your parents should be the cosigners, but other family members are good choices too. Simply excel at your job, pay the bills and your new home will offer you more wealth as time goes on.