tt rto programs - home ownership

The Pros and Cons ofThe Pros and Cons ofThe Pros and Cons ofThe Pros and Cons of

Home Ownership Home Ownership Home Ownership Home Ownership

HOMEOWNERSHIP

WHETHER AND WHEN

Purchasing a home is a personal choice that demands careful

deliberation, the decision varies from person

to person and market to market

An evaluation of the pros and cons is required,

with input from an expert realtor, mortgage

broker, and other advisors

5 ADVANTAGES5 ADVANTAGES5 ADVANTAGES5 ADVANTAGES

1. EQUITY

Every dollar paid towards the mortgage principal is a dollar of equity for actual ownership of the property, a hedge against inflation, and part of your retirement plan

Once you have 20% ownership you can tap into a home equity loan or refinance for better terms.

You can also boost your enjoyment and the home’svalue with judicious home improvements


2. CAPITAL GAINS

Your “principal residence” is any residential property owned and occupied by you or your family

A house, condo, cottage, mobile home, trailer or a live-aboard boat, and it need not be in Canada

Any gain on the sale of a principal residenceis tax-free


3. POTENTIAL RENTAL INCOME

You can use your home for a source of income

to partially or totally offset ownership costs

Earn rental income following local laws and regulations

• Rent out a room, the basement, or the upstairs

• Live in one unit of a duplex and rent out the other

• Use sharing economy for short-term renters (e.g., Airbnb or VRBO)


4. CREATIVE FREEDOM

Your decorating and DIY projects, pet ownership choices, and guests answer to no one else

Changing your living environment to suit your lifestyleis a fun and enjoyable part of homeownership

Follow building codes and homeowners’ associationrules


5. SENSE OF BELONGING

Put down your roots and get to know your long-term neighbours; you can decide how long you stay there, not a landlord

Join community associations or organizations and sign up to attend classes and events

Volunteer for business, community, and city activities to make it a better place to live

4 DISADVANTAGES4 DISADVANTAGES4 DISADVANTAGES4 DISADVANTAGES

1. POTENTIAL FOR LOSS

Although homeownership builds equity, this doesn’t mean that profit is

automatic

If home values in your area decrease, you risk a

financial loss when you sell


2. MAINTENANCE AND REPAIRS

You are responsible for all uninsured

maintenance and repair work on your

home

As a rule of thumb, you can expect to

pay about 1% of the value of your home

per year


3. HOMES AREN’T SOLD FURNISHED

You need to spend time, money, and energy furnishing your home

• Furniture

• Appliances

• Window coverings


4. HIGH UPFRONT COSTS

You can pay a over of 5% of the purchase price before possession with

down payment and closing costs (legal fees)

You could be required to pay over 10% or 20% of the

purchase price depending upon your financing

HOMEOWNERSHIP

MORE INFO

To learn know more about the costs of

home ownership or the pros and cons

of renting, read the article by Brian

Martucci, “Renting vs. Buying a House

– How to Make a Decision, Pros & Cons”

http://www.moneycrashers.com/rent-or-buy-a-house/

HOMEOWNERSHIP

REFERRALS

If you know of anyone who wants to purchase a home, but does not

qualify for a traditional mortgage, or would like to invest in real estate,

but doesn't want to be a landlord, we will pay a referral fee if they are

successfully established in a RTO program with TuCasa Today

Roy O. Christensen, RET

[email protected]

403.703.2686

tt rto programs - home ownership

Documents