It’s an age-old argument.
Which is better? Renting or buying?
With the cost of real estate becoming so high in Canada’s big cities, renting can sometimes be more attractive than buying when you consider mortgage costs and all of the other expenses associated with home ownership.
However, most Canadians still want to buy. There’s something very special about owning your own home, and in Prince George it still makes sense.
Here are five reasons why it makes sense to buy in Prince George:
1) Rents have increased
The high demand for rental accommodations in the city has pushed up the price of rent. To rent an average family home could easily set you back $1500 a month or more, which could be more than the cost of the mortgage.
2) Home ownership is a better long-term investment
While you may not have to pay property tax or maintenance costs for your rental accommodation, you’re also not building up any equity of your own. All that money you spend on rent every month is helping someone else pay off their mortgage.
There are costs involved in buying and selling homes, which is why it may be better to rent if you are only going to live in the house for a short period of time. You can use a buy or rent calculator to estimate how long it will take for buying to become a better investment than renting.
3) House prices in Prince George are increasing
Current trends point to house prices continuing to rise, which means if you buy a house now, you should benefit from an increase in the value of your property. If you continue to rent, it will be more expensive to buy later on.
4) A home you own can become an investment property
In Prince George it is still possible to find properties that you can rent out to generate a monthly profit. Even buying a home with a rental suite can take a big chunk out of your monthly mortgage costs.
This one isn’t a financial benefit, but it can make a big difference. If you own a home, you don’t have to ask permission to paint the walls. If you want to make bigger changes to the property, you can do them. It’s your home.
For more information about buying properties in Prince George and surrounding areas, get in touch with Team Powerhouse Realty.