March 2004
RENT OR OWN?
From my experience that question only has one answer. OWN!!!! Ask your parents. They'll have the same answer because they've "been there done that." We still live in a city where it is affordable enough to own your little piece of real estate and to pay the cost associated with that ownership (i.e. taxes, utilities). But… like everything else we own, first comes the desire and then comes the purchase. When we want something badly enough we can usually find a way of acquiring it. It has to be a priority.
The hardest part of ownership is the down payment. How can a person save 5% of the cost of a home and not weaken during the process and end up spending that money on a sound system or car, quad, computer, etc? SELF DISCIPLINE… and that unquestionable desire to have your own home is the answer. There are hundreds if not thousand of merchants out there and they all want your money! Some have advertising campaigns that are designed by professionals and appear in various medias that cost them thousands of dollars. Can you blame yourself when you are temporarily weakened and end up with that other new item instead of that new home? Saving that 5% down payment shows your lender that you did have the desire to own, that you have the self discipline to stay on track, and that you almost certainly will make the monthly commitment as you move toward having no mortgage at all. Lenders need to see that. Lenders do have some flexibility when you purchase a brand new home by a "certified" builder. Two and a half (2 ½%) down can get you into that home provided you can work off the other 2 ½% by doing some "sweat equity" such as painting the home yourself. Another acceptable option is a "gift" from a parent or relative that makes up 2½% of the homes cost. Let me help you with the math.
Our company has brand new homes with 10 year warranty available at $135,000 including GST. With 2½% down, that makes a down payment of only $3375.00.
That's good news! More good news is that the monthly investment on the balance is only 776.00 per month. And that also includes land taxes. Compare that to the rent you are paying now.
Not bad?? Call us at 548-3137 with any questions.