Looking to build a solid financial future? While stocks may be the first thought, that route, even for the most financially sophisticated, can be intimidating. The good news is home ownership can provide a straightforward and advantageous way to grow your nest egg.
Haven’t considered investing in home ownership? Here are a few points you may want to ponder
1.Payments you can Afford
With historically low interest rates, the number of people who can comfortably afford mortgage payments on a Greater Toronto Area (GTA) home has increased. Buyers can also feel confident that when investing in real estate in the GTA you are also investing in a city that consistently achieves strong global rankings, making it a desirable location when you choose to sell.
2. High Return on your Investment
In 2005, the price of a typical single family detached home in Durham Region was $269,800. Just ten years later, the price was $426,900. That’s a 58.2 percent increase.
In 2005, the price of a typical single family detached home in Halton Region was $380,400. Ten years later, the price was 692,100. That’s an 81.9 percent increase.
In 2005, the price of a typical single family detached home in Peel was $349,100. A decade later, the price was $594,100. That’s a 70.2 percent increase.
In 2005, the price of a typical single family detached home in Toronto was $454,800. Ten years later, the price was $834,200. That’s an 83.4 percent increase.
In 2005, the price of a typical single family detached home in York Region was $408,100. Just ten years later, the price was $789,400. That’s a 93.4 percent increase.
3. Forced Savings and Shelter
Regardless of what corner of the city you call home, you can feel rest assured that investing in real estate is a wise choice. Home ownership not only offers a “forced” savings plan to build your equity, but also offers the opportunity to live in your investment while it appreciates. Home ownership works double duty offering the backdrop for important life events, while quietly building wealth for you and your family.
4. Good Debt
Concerned about the debt that is associated with large purchases? It’s important to recognize there is a difference between good and bad debt. While one involves indulging in luxuries, the other involves spending your money so that it will work for you to build more wealth. Provided you are spending within what you can reasonably afford, a home purchase unquestionably can represent good debt.
5. Tax Advantages
The capital gains tax is quite possibly the biggest tax home owners face. The good news is you can avoid paying tax on any price gains, provided your home is your principal residence.
For more information on making the transition to your next property, if commercial property is what interests you, contact a TREB Commercial Professional Member REALTOR® by visiting trebcommercial.com or talk to a Greater Toronto REALTOR® and visit www.TorontoRealEstateBoard.com.