As a North Vancouver realtor, I know that buying a home in is a daunting task, especially if you’re a first time home buyer. There is so much to think about: saving a deposit, getting a mortgage approval, finding the right home, having a home inspection, moving in, and then keeping up with all those monthly bills; it’s no wonder many people decide that renting a home is the easier option. But…
Does Renting a Home in North Vancouver Make Financial Sense?
Renting may feel like the easier and cheaper option, but in the long term this simply is not the case. So the straightforward answer to that question is ‘NO’, renting a home in North Vancouver in today’s market does not make financial sense!
Understanding Today’s Market
The real estate market of today is fairly stable. With slightly more homes for sale in North Vancouver than there are buyers, this makes it a good time to buy. Some of the more exclusive streets of North Vancouver are in higher demand than others, so in these neighbourhoods prices will rise more steeply as multiple parties are interested in the same property. First time home buyers are unlikely to be looking for a North Vancouver home in these neighbourhoods though, so this sector of the market need not be taken into consideration when thinking about buying a home.
A Home as an Investment
The biggest investment most people will ever make is in buying a home, yet it is easy to forget that this is an investment. Many financial experts will report that property is also the best investment you can make, provided of course that you choose wisely. There are actually very few homes in North Vancouver that would be an unwise investment, and with the help of a licensed Realtor you will be guided into making a good investment, not a bad one.
Once you have made the initial investment, maintaining your home in good order should ensure that your North Vancouver home keeps up with the market. That is to say, any rises in the market here in North Vancouver will also mean that your home rises in price. And, even though you have a mortgage on the property, any increase in the value of your home is a return on your investment that boosts the equity you have in the home.
Renting vs Buying a Home in North Vancouver
The main advantage with buying a home in North Vancouver is that you are paying into your investment. Each month when you make a payment to the mortgage it is coming off what you owe the mortgage company, and helping to pay off your mortgage. As you owe the mortgage company less, your investment grows.
When you rent a home in North Vancouver you are paying your landlord’s mortgage. He or she will be benefiting from your payments, reducing their mortgage, and eventually become mortgage free all thanks to the rent you are paying them each month.