Condos & homes - rent or own?
Entering into the Kelowna Condo or Home market on the internet is a dark and scary place sometimes and there’s no shortage of people out there preaching the virtues of renting a home instead of owning. It’s a timeless argument really that no one ever really wins. When first time purchasers put an offer on a house it seems they all have a handful of friends, family members or co-workers who are able to scare them into believing they’ve made a huge mistake investing in a home. They cite annual property taxes, maintenance, renovations, property transfer taxes, the lack of mobility and the good old danger of home values declining. Throw in Canada Mortgage and Housing fees and the potential for increased interest rates and it isn’t difficult for a well-intentioned friend to convince you to stay renting forever.
The math can work both ways supporting the renting or buying argument. In speaking with Mark Price from Mark Price Mortgages he has heard the following scenario many times:
“Last week I sat down with a couple who had been renting for 13 years. When we calculated that the past 13 years, they had basically paid their landlord's mortgage. We estimated they had paid over $130,000 in rent in the past 13 years just by calculating $800.00 per month for 5 years plus $900.00 per month for the next 5 years and $1000.00 per month for the last 3 years.”
In 2001 the average house price was $130,000. If they had purchased then, their home would be worth approximately $330,000 in today’s market so aside from the $200,000 from increase in value they would have had about another $60,000 in equity. By renting for 13 years they have 0 equity; if they had bought 13 years ago they would have upwards of $260,000 in equity.
We always tend to look back at what we could have done and do not appreciate that what you buy today could be your forced savings for tomorrow.
There are many first time buyer opportunities in the Kelowna market right now. Presently there are 289 condos with 2 bedrooms listed between $100-$300,000; 96 townhomes listed between $200-$400,000 and 253 single family homes listed between $200-$400,000. A $250,000 purchase would equal a mortgage payment of approximately $1160.00
If you are paying rent and tired of not seeing a return for your money call Andrew Smith 250-979-8066 for The 1st Time Buyers Program or a for FREE copy of my “First Time Home Buyers Ebook.” http://www.okanaganbc.com/1st-time-home-buyer/
You may not be ready to buy right now but it is a good time to start planning. Andrew has over 22 years experience helping people plan to buy their first home
Read more Ups and Downs in the World of Housing articles
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- Kelowna: For sale by owner Jun 16
- Where normal people live Jun 9
- Housing market has changed! May 19
- Best Kelowna housing start since 2008 May 12
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