Are you caught in the age-old dilemma of whether to buy or rent your home? In this episode of the Flow Real Estate and Money Show, we will be breaking down the timeless debate to help you make informed decisions for your future. Let's dive into the key considerations that often get overlooked in this age of instant gratification.
Owning:
Leverage, the secret weapon of real estate. With just a 5% down payment, you can enter the market, unlocking opportunities to multiply your investments over time. Think of it as a financial game-changer that other assets can't match.
Renting:
But wait, renters have their play too! Diversify your savings across portfolios and potentially earn returns without the headaches of property ownership. It's a different game, and both sides have their winning moves.
Owning:
In Canada, skip the interest write-offs but revel in the capital gains exemption on your primary residence. Sell that property, and the profits are all yours, tax-free. Few investments offer such a sweet deal.
Renting:
Renters, no tax benefits here, but you're free from the maintenance costs and other ownership headaches. However, your investment earnings elsewhere won't escape the taxman's grasp.
Owning:
Ever considered the strategy of living where you don't want to buy? Invest in a property outside your dream location, let it appreciate, and enjoy the cash flow while renting in the city you love. It's a win-win strategy.
Renting:
Flexibility is the renter's superpower. Move to different cities without the burden of homeownership. But beware, there are cities where renting might be cheaper than owning.
Whether you're team own or team rent, the key is to analyze beyond the present. Look 5, 7, or 10 years down the road. Are you making decisions based on emotion or sound financial planning? In the ever-shifting landscape of real estate, understanding the long-term game is your ticket to success.
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