Blog by Patricia Houlihan - Personal Real Estate Corporation

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Your Mortgage Is Finite

When comparing the cost to rent vs. the cost of a mortgage, one thing that people often forget is that eventually, your house will be paid off completely. When that day comes, you will no longer have to shell out monthly mortgage payments. You will be an owner, 100% free and clear. Then, when you are old you will not have to pay rent, or anything except repairs and property tax as the worlds whips on around you. It's a retirement plan. Imagine living without rent? You could be the equivalent of rent-free in only 20 years.

 

Time travels much faster when you get into your 30s and 40s. Think of what you were doing just 10 years ago. It's amazing how quickly life can pass us by. If you had bought 10 years ago, you property should now be worth double-or much more than double. And more importantly, you would be halfway towards not having another mortgage payment again. In ten years (on a 20 year mortgage) you could be free and clear with a growing nest egg and no more housing payments to contend with.

 

Most people just look at the monthly cost. Rent is x amount which will get you a 3 bedroom vs. a mortgage for y amount that puts you in a 2 bedroom. I implore you - don't forget about time, the z-axis. When you factor in that one day that 2 bedroom will be yours in the clear, 100%, AND it will have allowed you to safely obtain a good return on your money invested, it makes renting seem like a bad idea.

 

There's plenty of Vancouver real estate to start your journey. Let me help you find your start(er). Believe me, the best thing you can do is start small, get in while you can, and constantly upgrade. As the kids grow, and your salary increases, move up into the bigger townhouses – it’s baby steps – one bedroom at a time. The trick is just to get in, and there has never been a better time with 3.7% mortgage rates over 10 years.

 

Just think, in 10 years, you could be halfway to not paying anything at all!


 

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