You can save money overall by purchasing a condo on the lower end of your budget. Combine a lower purchase price with these record-low interest rates, and you’ll have far more expendable money in your pocket.
This means you could purchase a lot more condo for your money. Because of the lower interest rates, you’ll have more flexibility with your monthly payment. This would allow you to choose a property with more amenities, better location, larger square footage, or whatever your heart desires.
Mortgage Payments Can Be Cheaper Than Renting
Because of low interest rates and competitive purchase prices, your mortgage payments could be less than rent for the same type of property. You’ll be paying less per month for your living expenses, and you’ll be investing in your own financial security rather than paying the mortgage for someone else.
By purchasing a condo now, you’ll start building the equity to create freedoms for yourself later. The sooner you start paying down your mortgage, the more equity you’ll be building towards whatever goals you have.
Not only do you have the upper hand financially, but there is also a great deal of choice available right now. There are more condos on the market than houses, with many different styles and locations to choose from.
Condo buildings are popping up in many brand-new residential communities. These condos vary in style and can be in the form of apartment-style, low-rise buildings, townhouses, and gated communities.
High-rise towers are also under construction in a few areas, including the urban cores and university areas. Because there are plenty of condos on the market, you can decide exactly the type of condo you want, the location you want to live, and the amenities that come along with it.
Support For Down Payments
Maybe one of your barriers to buying is saving for a down payment. For first-time buyers, there are a few government programs available to help you with your down payment.
The RRSP Home Buyer’s Plan is available to buyers who have not purchased a home within the last four years. This plan offers up to $35,000 borrowed from your RRSP tax-free to fund your down payment. You will repay this amount through your tax returns over a 15 year period.
The GST New Housing Rebate offers a discount on the federal tax owing on a brand new property. This is only applicable to new builds, but depending on the purchase value of your home, the rebate can be up to 100%.
Invest For The Long Term
Maybe you’re concerned that the market has fluctuated over the past few years? Your property value and investment is important to you, and the uncertainty may be keeping you from buying.
Homeownership, however, is a long-term investment. The idea is to invest in your future so that years down the road you have more financial freedom. Just like an RRSP, you wouldn’t stop investing simply because the market dipped for a few weeks. Investing in a condo today means that as you pay down your mortgage over time, you are building equity and eventually you will be debt-free.
Interest rates are incredibly low right now, providing a multitude of options for your investment. By the time you’re thinking about selling again (as long as you are investing long-term and not selling immediately), you will benefit from the equity gained from paying more on the principle over time.
There may be a variety of reasons to be on the fence about buying a condo, but with record-low interest rates and an abundance of options available, it is clearly time to invest in your financial future. Get in touch with the team at Symphony Tower and let us help you get started.