Buying a new property or shifted to a rental property? This is a big question that’s hit in every Canadians minds all over the country. According to the Conventional wisdom they suggest to buy property. But sometime our pocket will not allow buying a new property so we go to rental property. But for those who going to buy a property first time there are too many question occurs and need to be asked.
There are some points which will decide that to buy a new property or move to rental property.
Where are you in next five years?
If you are working somewhere and heading to the overseas then you should prefer the rental property. Because it is not good to buy a property leave it vacant for long time, this is the wastage of your money/investment. But if you are not going to anywhere or need to stay for a long-long then you should buy a property. Because it is not good to stay long time in a rental home or rental property. You may pay your rent as installment to bank rather than landlord.
Saving for the down payment?
There are the new changes occurs which was came into the effect on Feb. 15,2016, property buyers will require to put 10% down payment on mortgages over $500,000 (approx.) & the 5% rule will remains the same for the portion up to $500,000. Sometime it become more expensive to buy new home rather than to live in a home for rent.
If the roof need to be fixed or the furnace breaks down you will need to hook down the costs of maintaining the house. But if you are in rental property you just need to call the landlord and he will be there to fix all the issues. In 2015, an average monthly maintenance fees of 1,000 sq.ft. Condo was $590, up from 2005 on that time it was $440 according to research. The maintenance fees of new building are less because it will less risky than the older building.
Money saves for closing costs
When the first time buyers will not have enough amounts to pay certain fees then there are other number of closing costs that need to be taken in account. If you are going to buy a new property then you have to know about the rates of property according to the location. All the fees are need factored like land transfer taxes, lawyer fees, real estate agent costs and appraisal and home inspection fee, etc.