Cryptocurrency may be flashier, but homeownership builds wealth you can count on.
Net worth goes up for home buyers compared to renters. Not only that, but building wealth through homeownership can last for generations.
How Homeownership Builds Wealth
Homeownership builds wealth in three easy ways:
Your home’s value will appreciate on average about 5% a year, more when house prices soar. You may take a hit if home sellers retreat in the face of high interest rates, or more homes are on the market than buyers want. Balancing that with profits you made in good years easily shows how homeownership builds wealth for most home buyers. Buying a new construction vs resale home.
Eliminating your mortgage, early or 25 years out, allows you to live rent free, for the rest of your life. Renters may save money, but they also see no long-term financial gains, capital or otherwise. Why homeownership builds wealth for retirees.
Tax and Homebuyer Benefits
Homeownership builds wealth by allowing home buyers who make business, professional, or rental income from their home to write off the mortgage interest. Homes you live in are eligible for principal residence deductions when you sell, and you can take advantage of green energy grants and other home buyer incentives. Rebates and mortgage programs for first time home buyers.
Rent vs Buy a Home: Who Wins
The 2016 Canada census revealed what Canadians really think about renting vs buying. Building wealth through homeownership is part of 72.6% of families’ long-term financial strategies.
Who Homeownership Builds Wealth For
But it also exposed a basic fact: not everyone who could own a home does. Your ethnic background can affect if you buy a home, even if homeownership builds wealth. Buying income property in Ontario.
Mixed race and Caucasian Canadians are building wealth through homeownership, and income is not necessarily why. A CMHC (Canada Mortgage and Housing Corporation) analysis shows low-income Japanese Canadians buy more homes than high-income Aboriginal residents. 4 home buying pitfalls to watch for.
Who Owns a Home in Canada
Only around half of black, Arab, Aboriginal, and Latin American residents and their beneficiaries benefited from building wealth through homeownership. Homeownership rates have dropped since 2011 for West Asian families and Korean or Filipino residents.
In fact, immigration status and income had little to do with whether some Canadians opt to build wealth through homeownership. See CMHC’s findings.
Dealing with new home construction delays when you buy a home.
Is Renting Really Cheaper?
Ethnicity, income, or otherwise, buying a home has its share of “dead money”. Things like property taxes, upkeep, credit costs for a mortgage, or profits you might have made by investing your money instead of buying are unrecoverable. But so is rent. Calculate the cost to rent vs buy an Ontario home.
The 5% rule for home buyers goes like this: if your unrecoverable costs to buy a home exceed what you could save by renting, it could be better to rent vs buy. Use the 5% rule to make a decision.
Other good reasons to buy instead of rent:
- You can use the built-up equity in your home for financial emergencies.
- Even if your income changes, your housing costs are stable.
- Homeownership allows you to pass assets on to children or other beneficiaries, in your lifetime or after.
Watch 9 tips for the first time home buyer on Vimeo.
Appraising Your Home’s Value
Is it time you thought of buying? Building wealth through homeownership with a Will. Hire a Will lawyer near me.
Why You Need a Real Estate Lawyer
Buying a home can be complicated. Before you lock yourself in, bring your offer to purchase to an Axess Law Ontario real estate lawyer. We will examine the fine print in your draft or signed agreement of purchase and sale. What’s in the purchase and sale agreement for Ontario.
Vaguely worded terms and conditions can trip up even the most sophisticated home buyer or real estate investor. Your Axess Law real estate attorney negotiates to include clauses that give you the right to cancel by mutual release. How your real estate lawyer can help.
We work with the seller’s lawyer to try to get your good faith deposit back, and avoid hefty buyer’s penalties. If penalties are likely, Axess Law refers you to trusted legal partners who can assist you with responding to a demand letter or going to court.
Prefer to get short-term mortgage financing until interest rates are more appealing? Axess Law talks to the seller’s lawyer about amending the completion date to allow you to find a mortgage broker who specializes in private lender transactions. When to consider private mortgages.
Sign Legal Documents Remotely
Plan a virtual real estate lawyer videoconference and experience the convenience of closing your real estate transaction from the comfort of your home or office. Axess Law discusses and witnesses real estate documents online anywhere in Ontario. Our secure video conferencing software keeps personal information confidential.
Using a virtual real estate lawyer.
Affordable Legal Services, Anywhere in Ontario
Access lawyers for less in the Greater Toronto Area, Ottawa, or anywhere in Ontario when you buy, sell, or transfer property. Axess Law’s flat fee real estate lawyers are affordable, and our rates are all inclusive (excluding taxes, disbursements, and third-party charges). Axess Law offers you only the legal services you absolutely need. Your final invoice includes no surprises or hidden charges. Your itemized statement of adjustments is explained when we deliver it, and we answer any questions you have about it.
Make Legal Appointments Online or Call for Times
Close real estate transactions from anywhere in Ontario with an Axess Law virtual video real estate lawyer. Call our toll free lawyer line at 1-877-552-9377 (647-479-0118 in Toronto) to book day or evening appointments. Schedule times and dates that work for us with our handy web booking form. Axess Law has a licensed Ontario real estate lawyer for online or in-person meetings at any of our conveniently located Greater Toronto Area or Ottawa law offices.
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