As a homeowner, you can reasonably expect the equity in your home to increase over time as the mortgage is paid off. That, combined with regular appreciation of property values, can be a quick and rewarding way to increase your net worth. In contrast, the person who rents for the same amount of time is left with no real estate investment, but may have enjoyed lower living expenses and the opportunity to invest in other opportunities.
When comparing property to rent, you should add up all the numbers, including the cost of your home, your down payment amount, utilities, immediate repairs, interest rates, and insurance, and compare them to what is currently spending. we came back.
Of course, you should also appreciate the enjoyment and satisfaction you’ll get from owning your own home.
Last but not least, the state of the housing market should ultimately determine whether to invest in real estate or rent first, save some money, and wait for favorable market conditions to buy.
For a snapshot of the real estate market, Canadian home starts can be consulted:
December result: 185,000 units
TD Bank Forecast: 215,000
Canadian employment figures:
December result: -19,000; unemployment rate 5.9%
TD Bank Forecast: 10,000; unemployment rate 6.0%
According to TD Bank, we should expect to see housing starts pick up in January to 215,000, after falling to just 185,000 in December. The TD’s December report mentioned that much of the weakness in housing starts was due to bad weather, which is unlikely to be a negative factor again in January as the temperature was actually a bit higher usual. Residential building permits have remained strong and overall economic conditions in Canada remain healthy, this would lead one to believe that the extreme weakness in December was a one-time event, with housing starts slowing only gradually through 2008.
In a speech this week, central bank officials reiterated that “further monetary stimulus is likely.”
it will be required in the short term to keep aggregate supply and demand in balance, and to bring inflation back to target in the medium term.” as much as 75 basis points of easing to come.