Stop Renting! Stop paying your landlord’s mortgage! Are you Ready to purchase a home in Ajax? Read on to find out!
There are some people that have not purchased a home in Durham Region because they are uncomfortable taking on the obligation of a mortgage. Is it more expensive to Purchase a home in Ajax than it is to Rent a home in Ajax? Are you Ready to purchase a home in Ajax? Would you like to learn how to stop paying your landlord’s mortgage? Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage – either your mortgage or your landlord’s.
Yes, prices in Durham Region have gone up, but so have the prices of rental properties. Consider a first time home in Ajax for the price of $450,000 vs a similar sized rental property, each costing you $2000 a month… which makes more sense? If you rent, that is money that you are never going to see again. If you use that same $2000 a month and have a mortgage, you are gaining home equity!
Does this concept only apply to Ajax properties?
This concept not only applies to Durham Region Properties, but literally all across North America. As The Joint Center for Housing Studies at Harvard University explains:
“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return.
That’s yet another reason owning often does end up making more financial sense than renting.”
Christina Boyle, a Senior Vice President, Head of Single-Family Sales & Relationship Management atFreddie Mac, explains another benefit of securing a mortgage vs. paying rent:
“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”
As an owner, your mortgage payment is a form of ‘forced savings’ which allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee the landlord is the person with that equity.
The graph below shows the widening gap in net worth between a homeowner and a renter:
Bottom Line
Whether you are looking for a primary residence for the first time in Durham Region, such as Ajax, Whitby, Oshawa, Brooklin, Clarington or Pickering, owning makes more sense than renting.
Contact Kirk Rickman and Victoria Carter, two Century 21 Durham Region Realtors who specialize in working with first time buyers, home owners who would like to sell, investment properties and renters.