Should I Rent or Own a Condo?
Thursday Sep 23rd, 2021Share
THRER ARE 3 AREAS TO CONSIDER WHEN DECIDING ABOUT RENTING OR OWNING A CONDO
1. The principle of Owning Real Estate
Regardless of where the market is in its cycle, real estate investors have a myriad of options to make money at their disposal. Whether you choose to invest passively or as a hands-on rehabber, real estate can simultaneously generate a lucrative income and significant tax benefits. Point being: there is never a bad time to get into real estate investing, as long as you are willing to work hard and mind due diligence.
2. Investing in Real Estate or The Stock Market
For some people, they feel their invested income is in a better place in the stock market. In real estate, your gain (or loss) in your principal residence is tax-free. This is not the same as other investment income as those gains are taxable.The stock market and real estate both increase in value if you hold them over time ) a series of years). In real estate, you own land which historically has been a safe and solid investment. A real estate asset can offer some control and tax benefit.
3. Securing a Down Payment
The most difficult part of buying a condo for some people is the down payment. You have to find creative ways to save a down payment so you start to build personal equity. Some solutions are to have weekly or monthly savings goals, spend less on disposable income, or share an investment with a friend for a perios of time. Over time some people chose to live together with their parents or friends in one property to save money for a down payment. In the long run, you can take advantage of using different investing options such as TFSA and RESP to save and grow your downpayment.