In regards to the housing market, one of the biggest debates is whether or not you should buy a home or continue renting. As your local Red Deer mortgage broker, I explain why purchasing a home is an important investment for your financial future.
Not only does homeownership give the buyer a sense of pride, but it can also be great for long-term and short-term investment.
In Canada, owning a home is a long-term investment because you can build equity over time. Equity is the difference between your Red Deer mortgage balance and your home’s overall value. Therefore, the more you pay towards your loan balance, the more equity you will have.
Homeowners may have the option to access this equity once by refinancing their mortgage or by selling their house. This can give you access to a large sum of money that can be spent any way you would like. It is common for homeowners to use the equity to pay off large amounts of debt, such as their credit card balance, or car loans. Others use their equity to renovate their home or purchase more real estate. You could even use this cash to go on a dream vacation or to help fund education. Many clients will set up a Home Equity Line of Credit in order to invest. This is a great way to get your equity working for you while you still own your home.
Another reason homes are a good long-term investment is that home’s appreciate in value over time and can deliver capital growth.
For more information on long-term investment in housing, please contact your local Red Deer mortgage broker Tania Grozelle at 403-392-5808.
Homes also provide great short-term investment by you paying yourself every month instead of paying a landlord. You may also receive a tax credit up to $750 if you purchase a home for the first time.
If you have had to renovate your home to become more safe and accessible due to illness or injury you may be able to claim up to $10,000 on your taxes under the Homes Accessibility Tax Credit (HATC).
Another short-term tax benefit is if you buy a new home under $450,000 as your primary residence, you could submit a claim for the GST/HST new housing rebate. Contact your local broker for more information.
For more details on long-term and short-term investment benefits of owning a home, please contact your mortgage broker in Red Deer Tania Grozelle at 403-392-5808, or visit our website www.mortgagesbytania.ca.