The arrival of COVID 19 in 2020 affected all our lives. The last few years have seen many dramatic changes. These included how and where some of us work, where we want to live, and added stress on everyone. The Ottawa Real estate market has been very dynamic since 2020. To further complicate our lives, inflation is at an all-time high. These uncertainties have made some of us sit back and reconsider our perspective on homeownership and whether or not it is the best way forward for ourselves and our families. 

In the past, renting was a viable option for many. The dramatic increase in rents and low vacancy have made this a less desirable option. While property prices have been dramatically on the rise as well, some people may be wondering if buying a home is worth the price. See below some ways to get into the market and how it will benefit your life. 

The Canadian Government offers a variety of Tax Breaks and Credits for Homeowners 

These include:

• Home Buyers' Amount: this helps first-time homebuyers with the costs associated with the purchase of a home, including legal fees, disbursements and land transfer taxes
• Home Buyers' Plan allows you to withdraw up to $35,000 in a calendar year from your RRSP 
• GST/HST New Housing Rebate allows you to recover part of the GST or HST that you paid on the purchase price or cost of building your new house
• Newcomers to Canada also have programs to help them purchase a home

Advantages of Ownership

There are many advantages to homeownership:

• Your family has a stable and safe place to call home and to build memories
• Ability to build equity as real estate values tend to increase over time
• Freedom to renovate and personalize
• You can’t be evicted
• Potential for rental income 
• You have control and flexibility in your monthly payments unlike rent prices that are determined by the landlord

 

Home Ownership is Your Best Investment

The decision to buy a house or condo is one of the most important ones in your life. It doesn’t matter if it is a starter home, condo, upsizing or even downsizing. Past trends show that it is likely that long term, property values will continue to increase. The Ottawa real estate market is one of the most stable in Canada. Over the last 20 years, the value of Ottawa homes has increased. There can be short-term fluctuations; however, the values have risen consistently. 

Building Equity 

You are one step closer to owning your home and building your equity with each mortgage payment. While you rent, you are simply paying to rent the space and not building any equity in the property that you could potentially borrow from in the future. The longer you live in your home, the higher your investment return on your investment will be realized. Unlike any other investment, the equity you have built up in your home will not be taxed when you are ready to sell the house.