Which is better for you? The pros and cons of buying a house
Buying a home is often a great option for retirees or people looking to save for a down payment on a home they want to buy.
But for most people, buying a home for the first time is a big gamble.
Here are the pros and the cons of the options.
Pros: Property taxes are very low for most Canadians The property tax is low compared to other countries, which helps make buying a big, expensive home a viable option.
A property tax of just $100 per month for a one- or two-bedroom home is far below the typical rate in the U.S. and Canada, and is far less than most Canadians pay.
Cons: Property insurance isn’t as cheap in Canada As a Canadian, you have to pay a premium for property insurance.
There are many different types of property insurance, but most insurance companies are in the insurance business.
Some insurers will cover your property with a policy, while others will cover only the amount of money you put in the policy.
For example, most insurance policies in Canada will cover up to $50,000 in damages, which is roughly the amount you would pay in the United States if you bought a house in the same city.
The higher the premiums, the higher the premium you pay.
If you can find a policy that covers up to 10 per cent of your income, the premium will be lower than the one you would get from a home purchase.
Pros and cons for buying a second home: It may be cheaper if you live near a university or an academic institution Some people who have already lived in a home are willing to move into a second house if the cost of moving is a concern.
But many Canadians would be hesitant to move a second-home that costs so much money.
For some people, a second apartment may be the better choice if the money saved in a second place is not enough to cover moving costs.
Pros : The extra space is much more convenient to have around the house You can put more furniture, appliances and other home items in the new home Cons : The additional space can be a little cramped and cramped may take up more room inside the house