Renting a Home
For some families, renting is the best solution. You may not be ready economically or emotionally to own. Some people consider renting a temporary way to live until they are more settled in job or family.

Renting can mean benefits such as:

• Moving is easy (you can move within a short time)
• Amenities may be available (pool, tennis courts, social/activity rooms, laundry facilities, security for apartment renters)
• You have few responsibilities
• Maintenance and repairs are handled by the owner
• There is no large down payment, only a security deposit
• Some monthly expenditures (rent) are fixed making it easier to budget
• There is no chance for financial loss of investment (beyond the amount of the lease)
• There is a sense of security from nearby neighbors
• You can look over the community and move again
• Moving-in costs are low
• It is easier if you travel a lot, either for your job or pleasure

However, renting has some disadvantages:

• It offers no special tax deductions
• There are no potential gains from the rising value of property
• Changes cannot be made or are limited in scope
• Rent rises with inflation except where there are many rental units available
• You will probably have restrictions on noise level, pet ownership, or children
• It offers no special tax deductions
• There are no potential gains from the rising value of property
• Changes cannot be made or are limited in scope
• Rent rises with inflation except where there are many rental units available
• You will probably have restrictions on noise level, pet ownership, or children

Owning a Home
If you are thinking about buying a house, consider the following advantages:

• A house is a form of forced savings (you make payments on an asset that may grow in value--many families would never accumulate assets otherwise)
• Homeowners often have a sense of pride and status in home and community
• A homeowner may have a better credit rating (equity in a home improves the credit status of the family and can be used as collateral for an emergency loan)
• Mortgage payments contribute to an investment, particularly if the property is located where it increases in value over a period of years
• Monthly payments remain relatively constant for many years (fixed loan), thus housing costs are stabilized because present and future costs can be estimated and planned
• Interest on mortgage monies and taxes are legitimate income tax deductions
• The house may increase in value, resulting in a significant gain in net worth
• Ownership may contribute to security, especially in retirement years when income normally decreases
• A homeowner can borrow against his/her equity, as the value of the house increases against what is owed on it
• More space may be available for family members and their activities
• A homeowner has freedom to make improvements and changes to the house and surroundings as desired (although a development or association may have restrictions and prohibitions)
• Home ownership can contribute to the general well-being and sense of "roots" of the family, especially for children

The disadvantages of home ownership may outweigh the advantages for some people because:

• A substantial down payment is needed.
• A house requires a big commitment in time, emotions, and money
• The house may decrease in value if the neighborhood deteriorates or changes quickly; thus resale may be a problem
• The homeowner may have limited money for other purchases or activities since his or her money is tied up in the house
• Maintenance and repairs may be costly and take a great deal of time and effort
• Owning a house requires money for insurance, and a loss of the house as a result of a natural disaster (tornado, flood, hurricane) could mean a serious financial burden
• Some families have difficulty budgeting for maintenance, repairs, home improvements, and/or home ownership dues
• Real property taxes could increase dramatically
• Total housing costs may take too much of the budget, resulting in potential cash flow problems
• The family may have higher moving-in costs as new items may have to be purchased for a house
• The family may feel less secure if neighbors are not near
• Security may be a problem if you travel a lot
• Unexpected loss of income due to job termination or unemployment may limit money available for home ownership costs

To buy or not to buy, that is the question
This seems to be the question on everyone’s mind lately. Well, Maybe this will persuade you to convert to the “to buy” side of the argument. Real estate is a surefire way to secure some of your hard-earned cash in a lucrative investment.

In fact, the real estate market in Vancouver has boomed remarkably over the past couple of years. In 2004, consumers spent $27.8 billion on residential real estate in Vancouver, shattering the previous record (for the previous year of 2003) by more than $3.6 billion, or 15%. From an investment perspective, if you rent over the course of your independent lifetime ( about 50 years ) at a payment of $1,000 per month, you will have spent $600,000 on rental payments and gained nothing.’

This doesn’t even account for inflation. If you paid that same monthly payment towards a mortgage rather than your landlord’s retirement fund, in 25 years you wife own your home and never have to make another monthly payment. Throughout those 25 years, your home will also appreciate in value and you don’t have to do anything but maintain it to realize that appreciation. With the exception of years 1981 to ‘82 and 1990 to ‘92, Canadian house prices have risen steadily over the course of 50 years. Forcing yourself into a monthly savings plan wife ensure that by the time you’re waving the flag of debt-free freedom, you’ll also have some positive numbers on your balance sheet.

So, why wait and let everyone else profit from the hot real estate market, while you pay for rent? Decide your future today. We are in the field every day. Who knows the market better than the people who work it on a regular basis? Call us for a free consultation.