The Pros and Cons of Renting or Buying Calgary Real Estate?

Granted, if you’re looking to buy a property for sale in Calgary, the success of your venture as an investment will certainly depend on how long you intend to stay in your home. Since the late 1990s Calgary real estate has consistently led other property markets in investment return, but the age old sentiment that buying has the unquestionable advantage over renting does carry a couple of provisos. If you are seeking a secure family home around which to pitch your white picket fence, sit back and watch your family grow, and your investment appreciate, a home purchase is a sound choice. On the basis of a financial analysis,The New York Times concludes that “If you stay in your home for 6 years, buying is better.” 

Those less rooted may opt for the cheaper start and comparative flexibility of a rental to suit their current lifestyle or until they’re ready for the commitment. However, if you’re in for the ride you’ll reap what you sow in the form of these pointers below: 

Security - undoubtedly a house purchase in Calgary is a long-term investment. The variety and stability in the local market coupled with a growing market confidence all suggest that you should benefit from the security that comes with knowing that but you’re building equity in your own home rather than your landlord’s. Once you’ve hurdled the typical outlay of insurance costs and outset expenses, you have the guarantee that your mortgage payments are steering you on course towards a secure financial future.

Money for nothing – renting might be cheaper initially, but in buying, you’re saving money long term. Take comfort in the prediction that Calgary interest rates will stay low for some time ahead. You can relax and potter in the garden, knowing that the pleasure gained here, and from choosing fabrics and designing renovations is simultaneously enhancing the property and contributing to your investment.

Fixed period/fixed price - most mortgages offer you opportunity to make additional monthly or annual payments to reduce your principal more quickly. If the mortgage is for a fixed period – the future holds no surprises and, perhaps most importantly, the end is always in sight. When you’re renting, you’re subject to period fluctuations in rent that can unwittingly take you over budget, in addition to facing an endless monthly bill.

Tax advantages – Canada’s Economic Action Plan boasts various incentive schemes brought into existence to help you realize your dream. Both First-Time Home Buyers' (FTHB) Tax Credit and Expansion of the Home Buyers' Plan (HBP) are examples of these and depending on your situation, you may find that all or at least a portion of your real estate tax and mortgage interest may be deductible from your income tax. A specialised accountant will be able to further advise you. 

Freedom – you have the freedom as a homeowner to customise your castle as you see fit. Your home is an extension and an expression of yourself. You hold the keys and make the decisions on who is and is not welcome. Besides - as a home owner, you always have the ultimate freedom to choose to become a landlord yourself!

Fuzzy logic – let’s face it – there are a hundred untenable reasons that tell us why we want to be home-owners. There’s an inherent security that comes with ownership that taps our desire to create something beyond basic shelter. All of the above provide a heightened independence that reflects our status and self-worth. As a proud home owner, you are in charge of your life and the way you live it. 

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