Take 5 minutes and think about your rental experience. Maybe you have a great landlord and your rent has stayed the same for the past 5 years with no increases. Maybe you love the space that your living in. Perhaps your landlord is so easy going that he / she does not mind if you want to paint your living room a new contemporary color or get that new dog that would be great to take on the trails running with you. Even if that is the case and you have neighbors that you like and you can turn up the tunes on Friday after a long week of work without the threat of eviction there is a reason why your landlord is so nice. You are paying their mortgage on their current investment. What are you getting in return? A roof over your head. Good. and what else? Take your rent and figure out what your return on investment is? Hmmmm $ 1200 times 12 months times 5 years equals $ 72,000. What is your rate of return. Oh right, nothing, zilch, zero. Pardon me for the sarcasm but it sees like you are getting the raw end of that deal.
Why have not you bought a home yet? Most times people do not think they are ready either financially or for the responsibility. Sometimes they believe the market is too high. Either way throwing $ 72,000 into wind every 5 years does not seem like a very good plan to me. I have short listed some reasons why you should get pre-approved and quit renting to provide some motivation and clarity for those of you which are still on the proverbial fence.
- $ 1200 / mo over 5 years = Rate of Return 0 Enough Said
- Mortgage Professionals have multiple lenders who can access credit for people who have perfect credit and bruised credit. Even if you can not get pre-approved today, the guidance of a mortgage professional can put on the path to a pre-approval usually within a year. The longer you procrastinate the farther away that year is.
- You can paint your living room Barney Purple or Gangrene Green if you want to. You have all the decorating flexibility you could want. This can be positive and negative depending on who is wielding the paint brush. 4. If you want to get a St. Bernard, Iguana, or Armadillo you and you along are responsible for the damage but pay not deposit.
- Canadian Homeowner's Net Worth are Double that of Renters
- Being a Homeowner Changes your Financial Position with your Financial Institution often opening up better credit option availability.
- You will no longer be contributing to the Luxury Car line up that your Landlord Drives.
- Once you build Equity in your home you can leverage it meet other goals at the Lowest Cost available! Home Equity Rates are lower due to the fact that they are secured by Real Estate.
- No one is every the King of an apartment. When you own your own home you can claim to be the "King of your own Castle."
- If you have trouble saving … Owning your home is a FORCED savings plan. Every time you make a payment you are building equity. You are increasing more of the asset side of what you own versus what the bank owns of your home.
If that is not enough enough for you Canadian interest rates are at historical lows which make the buying decision even easier! It is important when you do make the decision to get pre-approved that you get good advice so please contact a Mortgage Professional and check their credentials through the local Real Estate Association.