For most of us, owning a home is a rite of passage, a goal that we strive toward as we progress through adulthood. It gives us a sense of stability and security, lets us put down roots and offers the feeling of a sense of accomplishment.
Are you wondering whether you’re ready to join the ranks of those buying a house in Ottawa? Here are eight of the many benefits:
1. Freedom of choice
There can be many limits to what you can do in a rental, but when you own a home is yours to do with as you please. Do you want to get a pet, grow tomatoes in the backyard or paint your front door blue? Go ahead — there’s no landlord to ask for approval.
When you buy you are building a valuable asset. Homes traditionally increase in value over time and you are building equity with that. Think of your monthly mortgage payments as a forced savings plan. And once your mortgage is paid off, a substantial portion of your day-to-day living expenses is erased, making retirement or other lifestyle options much easier to consider.
3. Fixed Payments
Your mortgage payments are fixed over the term of the mortgage. Interest rates can rise, but your monthly payments are the same — no rent increases. So, for instance, if you have a five-year mortgage with an interest rate of 3.5%, even if interest rates rise during those five years, your rate won’t. That makes budgeting for other expenses more predictable.
4. Credit Rating
If you make your mortgage payments on time, owning a home substantially raises your credit score.
5. Further Investment
When you have equity in a home, you can borrow against it for things like improvements to the home, your children’s education or a well-deserved vacation abroad. It can even help you towards a larger, more expensive home for a growing family that needs more room.
There is an inherent pride of ownership when you buy, a place to call your own. It becomes your oasis in a busy life. It’s a place to build precious family memories, a place your children will come back to as adults, maybe with their own kids, providing a sense of continuity.
7. Social benefits
The stability of homeownership can also lead to social benefits such as building friendships with your neighbours, getting more involved with your community, and consistent educational and recreational opportunities for your children.
8. Tax benefits
The federal government encourages homeownership by offering tax incentives for homeowners, particularly for new homeowners or those who have been out of the market for some time.
While the benefits of buying a home are many, making the decision to buy a home for sale is a personal one and rushing into homeownership for the wrong reasons can erase many benefits. Be sure to take the time to make sure it really is the right time for you to buy.