Toronto has endured a rough year, in all sorts. The COVID-19 pandemic closed down businesses for a long period of time and forced everyone to work from home. Countless people lost their lives to the disease. Even the local housing market was no less impacted during the pandemic.
Around 68.55% of Canadians own their homes but this percentage might fall down or stay the same. The COVID-19 pandemic did not slow down prices in Toronto city proper, which created a flight of residents to the suburbs. The interest rates at the moment are low in Canada. Yet, the situation at the moment encouraged many to step in the market and make a purchase.
What is the effect of the pandemic on Toronto’s real estate market?
The pandemic has encouraged Canadians to step out in the market and buy a home of their own. However, rising prices in Toronto is a worrisome concern and the province of Ontario is hemorrhaging residents.
This phenomenon at one time was attributed to Vancouver. Migrants in large numbers came from Hong Kong when the United Kingdom transferred its sovereignty to the People’s Republic of China. Most of these migrants purchased properties at prices which later made Vancouver the most expensive city in Canada and North America.
Yet, those who were able to make the right move at the right time managed to become homeowners in an otherwise expensive city. Yet, those who made the move to the suburbs became homeowners too and those who bought a condo in the city proper are equally lucky.
Condos are the most affordable residential property available in the city proper of Toronto. However, prices of overall residential properties in the Greater Toronto Area (GTA) continue to rise. Yet, condo prices have been stabilized to an extent.
Now let us examine the key benefits for any Torontonian becoming a homeowner in Toronto.
The advantages of becoming a homeowner in Toronto
Based on research of experienced real estate professionals, here are some key advantages homeowners have when it comes to owning a home in Toronto:
It provides tax advantages
Everyone agrees with the fact that paying taxes is not the most attractive thing in the world. But owning a home can actually make it more beneficial for the homeowner. One of the biggest advantages they have is the option to deduct their monthly interest from their tax returns.
Due to the first few years of their mortgage usually being full of interest, the homeowners receive a very nice deduction of interest at the year’s end.
Adding on to the monthly deductions of interest, homeowners can also deduct things like home-related purchases as well as mortgage insurance payments. They can always reach out to their accountants in case they are not sure on how home ownership will affect their individual taxes.
A chance for carrying out the needed home improvement procedures
One of the most frustrating things about having a property on rent is the lack of freedom to create the space the tenants desire the most. Whether it is adding a shower valve or painting a specific wall. Those who own homes have no permission to carry it out as they can do as they please (whether they own a suburban home, apartment, loft, condo or mansion).
Creating and modifying a home to fit the residents and their family is one of the best feelings in the world. This can add more value to the home with relevant ease.
Homeowners certainly gain equity
A lot of people may be wondering what equity is, in terms of home ownership. In easy words, equity is basically the current market value of the home deducted by any outstanding loan balances the homeowner has.
Each year the homeowners own their homes and hence have a greater equity in it. When the homeowners have paid off their mortgage, the feeling of ‘rent free’ living comes in giving them their own home free and clear.
A sense of stability
THe sense of stability of being a homeowner is top priority for anyone considering home ownership. Whenever a person is on rent, they never know what kind of changes are to come; meaning when can the landlord change their rent payments, add more conditions, delay a service, deny a service/permission, give a notice of eviction quickly or decide not to renew the tenants’ lease.
In case of somebody’s own home in their ownership, they do not have to worry about the aforementioned concerns. Their mortgage payment is consistent and they do not have to worry about people entering their home with only a 24-hour notice.
The homeowner’s credit improves
There are definitely a lot of things that are involved in having a good credit score. Two of the most important factors are length of credit history and the kind of credit homeowners have. This is another way where homeowners can avail a huge benefit.
Usually, a mortgage is typically around 15 to 30 years in tenure. This gives the prospective homeowners a great way to lengthen their overall average credit of all accounts present. Read More : Bolly2Tolly
Moreover, if prospective homeowners add a mortgage into their credit mix along with their car loans, credit cards and other bills, whilst paying and clearing them on time; will show that they are responsible people. This makes it easier for them to get approved for future loan accounts.
Over to you
Becoming a homeowner is indeed a rewarding experience. Those who own one can make memories and help create a positive financial future not only for themselves but also for their families as a whole.
This post mentioned key benefits of being a homeowner. Moreover, it also helps remove the mental burden of being reminded to pay the rent or paying off the mortgage. Those who are unsure about making their first ever home purchase can always consult their trusted real estate agents.
They are instrumental in helping prospective home buyers understand the process from all angles so they can find their dream home at the best of prices.