Buying a house has always been considered as a major achievement. It’s a sign that you’re already a responsible adult. However, things are starting to change as of late as people are now questioning whether real estate is actually a good investment or not.
Nowadays, people already have different opinions when it comes to home ownership. Some believe that renting is a better option than buying which sounds completely ridiculous to others. They believe that nothing beats property ownership as you can also cash in on your mortgage later on. Avid renters, on the other hand, argue that the costs and hassle of the maintenance, and the upkeep isn’t worth the large upfront costs.
In a few major Canadian cities, renting makes a lot more sense, especially with the sky-high property prices. Renting isn’t just the affordable option for but it’s the only choice for the average citizen. But is this also the case for Calgary? Stick around to find out.
Buying vs. Renting in Calgary
Calgary’s real estate market is deemed as a “topsy turvy” one following the continuous improvement of the local economy. It hasn’t been considered very hot in the past but recent changes have turned it into what many experts consider to be a buyer’s market.
This is why the question of whether buying a home right now is a good idea became more pressing. Reports claim that the prices for detached homes haven’t changed while condominium prices are 3% lower than last year’s. These make the market more attractive for those who are considering investing in real estate.
But with such a large amount of money involved, it’s not surprising to see why a lot of people are asking whether doing so is a good idea. If the market is becoming more attractive to buyers, it can mean you might not be able to resell the property right away and still profit from it.
On the flip side, buying now means you’ll probably get properties at a bargain. The savings you can make from what’s currently available in the real estate listings in Calgary might just be worth the wait until you can resell the property for a profit.
Note, however, that mortgage rules have been tightened in Calgary just recently. In hopes of curbing debt loads, the Bank of Canada has ordered a mortgage stress test that will apply to uninsured buyers. Experts believe that it will prevent about 50,000 people from buying a property in Calgary. This can affect a lot of people who are already planning to buy their own homes.
Renting, on the other hand, saves you from all of these worries. If you’re not planning on staying in Calgary for a long time anyway, renting won’t tie you down. You can be liquid if you have the money for a down payment, which can be beneficial for your situation.
Then there’s also the fact that renting is way cheaper than buying a property. This makes it even more ideal for those who are thinking of investing their money in something else.
Buying as an Investment
Looking at how locals reacted to think pieces regarding the rent or buy debate in Calgary, it’s easy to see that people have quite a divided opinion about the matter. At the end of the day, though, the answer lies on what you consider as an investment.
As some people pointed out, there are those who buy so they can have a home that they can call their own. Others cash out just to make money from the property. Only you might be able to decide whether buying a property is a good investment based on your priorities and values related to home ownership.