One question often asked of Realtors are the reasons why buying a home or property is considered a smart investment.
Whether to buy or sell depends on your individual goals. You may be one of those individuals who are on the fence about buying. One may have reservations about buying his or her first home and another may be looking to change residences after a major life event such as a divorce.
In any case, it’s a good idea to review some of the tried-and-true reasons purchasing a home is a wise choice.
Here are four timeless reasons purchasing a home makes dollars and sense:
Generational wealth
Real estate is a great asset long term. Historically, renters may have paid up to a quarter of their income in rent, but that number is now up to 29 percent nationwide and even higher in our more higher market cities such as Toronto and Vancouver.
Renting is simply more expensive with no tangible payoff. Homeownership helps to build generational wealth because it appreciates, and owners
accumulate equity at the same time as paying off the loan.
So, if one purchases a home now, they’ve placed their capital in a safe investment that is likely to grow, creating a valuable sense of security for families.
Income generation
Real estate is a tangible asset (bricks and mortar we can see, touch and make memories in with our loved ones) that can always be used by the owner personally or to rent out to tenants.
Although being a landlord comes with a whole other set of factors to consider, having a property generate income for as a rental property can be a very wise decision.
Tax benefits
It’s also important to remind clients of the critical tax benefits that come with being a property owner.
For example, being able to write off interest rates on taxable income may very well add up to smart savings. Also, as owners of investment properties, any contractor work performed, repair, maintenance and any operating expenses will be tax deductible items.
Forced savings
Sometimes perspective is key. A portion of your home payment each month goes to the principal of your loan, which really can be viewed as a savings plan as you build equity in your home.
When retirement day arrives, home equity will be key for many individuals.
All four reasons aside, there is another silver lining to home purchasing: animal lovers out there can breathe a sigh of relief when purchasing a home, as they won’t have to worry about landlords who don’t allow pets anymore.
The key to overcoming objections is in understanding them. Having a professional Realtor on your side gives you information that you can use for motivation. They can discuss your goals and help
allay any fears you may have when facing one of the most significant decisions of you and your family’s future.
— Inman News