The benefits of purchasing a condo versus renting an apartment is an interesting idea to ponder whether you are considering your first purchase or looking to downsize from your family home once the kids are off to school. Your monthly payments will increase, but what will I get for this additional investment? In this post I want to look at some of the benefits.
Pride of ownership comes to mind first, nothing feels as good and provides the same satisfaction as owning your home.
Freedom to renovate and truly make your condo an expression of yourself and your lifestyle is another great benefit. If you like a cozy space with lots of places to hang your art, or if you’d like to have an open concept condo with lots of room to entertain, perhaps you want a gourmet kitchen to create delicious meals, or even if all you want to do is paint your walls funky colours, all of this is open to you when you own. This freedom also goes for repairs, if you have a leaky faucet you don’t have to wait for your landlord to send his maintenance guy when he finally gets around to it, you can call who you want, or take care of it yourself.
Stability is another great benefit, knowing that your monthly mortgage payments are locked in at a rate you can handle and that you can shop around when your term comes up is great peace of mind. Condo fees are also locked in, typically these are looked into and voted on by the condo board annually, and you know about any increases well in advance.
Commitment to investing in your future is no longer negotiable, when you own your own condo part of your monthly housing costs, that you would be paying anyway, are invested in your future. Over time you will build equity that can slowly bring your monthly costs down, or you can transfer that into a downpayment on your next move.
Halifax is a stable market to invest in property, and many believe it is going to get better. Over the last year condo values in the Halifax Regional Municipality have increased approximately 5% and there are no signs of that stopping. There are currently almost thirty commercial and residential buildings in various phases of construction around downtown Halifax. BMO stated this week that Halifax was one of the best places for investment in Canada. A stable workforce made up of the public sector, the military and reinforced by our many universities and colleges insulates our local market from large peaks and valleys. Annual Military postings and students moving in and out of the city helps keep the condo market consistently active as well. All of this is bolstered by the long term investment of the military shipbuilding contract awarded to Irving Shipyards in the North End, and Royal Dutch Shell’s $970,000,000.00 investment in oil and natural gas exploration offshore makes the future of investment in Halifax look quite bright.
In conclusion, if you have a decent down payment and plan on sticking around Halifax for at least a couple years, investing in the right condo is a sound investment, that may help you save or earn more than you would have had you rented for that time.