Buy a house not a mortgage
It is never easy to say “no” when you find yourself in a cozy two bedroom condo that is up for sale in one of the most popular communities in Milton, Ontario, Canada, especially after spending months searching for real estate options. You know that the condo seems exactly custom-made to match your lifestyle, complete with a lovely pool, and a fabulous gym which can save you so much on your annual health club membership. Oh, and the views from your living room of Lake Ontario are to die for.
Excited with your find, you may feel that the price tag on the condo seemed pretty reasonable, keeping in mind the convenient location, which would actually allow you to even walk to work and give you easy access to super markets, your kid’s school and the health clinic. It couldn't get any better, could it?
But as you continue to ponder over the amount you would need to shell out, you realize that rather than owning a home that would make you feel warm and safe, you would end up owing a huge mortgage that would make you feel insecure and live in the shadow of fear for the rest of your life. As you consider further, just paying off your mortgage would make you give up on things that you consider a part of your lifestyle, like eating out at fancy diners with friends, or that occasional shopping splurge over the weekend.
And you really don’t need to have a graduate degree in Economics to understand the huge financial risk you are involved in, where a slight change in Canada’s lending rates would bring the market way down and leave you with a condo that you would not be able to sell at the price you have paid for it. And where would it leave you—scuttling back to the safety of your parents’ home, or hunting for a rental apartment all over again?
There are so many factors to keep in mind before investing in your first home—factors that may not be in clear sight when you first arrive at the foyer, awe struck by the sheer beauty and obvious conveniences that stare back at you. You need to consider the fact that while your current work location is close by, you may not be able to take up the imminent promotion that comes along with relocating to another city. This is a common cause of labor imbalances in Canada, where people buy their own homes and are less willing to move to another city to take up other jobs. The huge debt that is racked up by mortgages are also taking a toll on people’s minds and bodies and it’s not surprising to see more and more people suffering from anxiety and poor eating disorders.
Getting on a huge mortgage to pay for the home you have fallen in love with may prove dangerous, and you must realize that it would only work to your benefit if you ended the romance more sooner than later. You may be advised by your family and friends and even your government, to invest in your own home, but you have to realize that in today’s economy, real estate business has grown deep roots and is one of the leading sectors of the whole Canadian economy.
It is but natural to have a growing desire to own the space in which you would want to live in, but this may lead to a grave situation that you may have never planned to be in—and you may find yourself trapped by the four walls around you, buried deep in the mortgage you thought would be easy to pay off.
It is quite common for many first-time home buyers in Canada to find that they end up shelling out their entire income on mortgage payments, leaving them with very less to live on. In many cases, the kids end up paying the price of their parent’s bad decisions. While they live in good-quality homes in perfectly great communities, they’re being compromised by depriving them slowly and steadily of things that they should normally be entitled to. No more signing up for sports programs or going out with friends. What’s worse is that parents are forced to put their growing child’s health at stake by sacrificing good-quality food.
Buying a home is a great investment that’s good for you and even better for Canada’s economy. If you have a great paying job, it would be best to get a whole lot of savings so that you are not dragged into the quick sand that mortgage payments are. Your home is where your heart is, but that’s where you use your mind to plan out payments and not let mortgage scare you out of the real estate market.
Shopping for a new home is an exciting experience and taking out a mortgage is probably the single largest financial move that you will ever take. Never get caught making that move without the proper advice. The best course of action would be to get an online or over the phone consultation with a real estate agent or a mortgage specialist so you can have a mortgage pre-approval before you begin your search for a home. This way, you can avoid the disappointment of not getting qualified for a mortgage and shop with the confidence of knowing that you will qualify once you find the right real estate property.
Buy Sell Invest in Residential Or Commercial Proprty via Pat Kakar / Pam Bhasin