There are some very good reasons to invest in a home. But think carefully before you buy – especially if this is your only investment.
5 good reasons to invest in a home
It has value – You own it (at least the part that you don’t owe the bank).
It can go up in value – You may be able to sell it for more money than you paid for it.
You get to live in it – You have to live somewhere.
You may pay the same as rent – The monthly mortgage payment may be about the same as rent.
It forces you to save – With each mortgage payment you make, you own a little more of your home.
Be aware of the risks
Housing prices can fall – You could lose money if you buy your home when prices are high, and then sell when prices are lower.
Homes can get damaged – You could end up paying for fire, wind or water damage. Home insurance doesn’t always cover everything.
Getting your money may not be easy – It can take weeks or months to sell your home.
There are other costs – Examples: roof repairs, painting, heat, property taxes and hydro.
Buying a home can be an important part of your financial plan. But make sure you have a number of different investments to help spread risk. If one does poorly, others may do better.
Content in this section is provided in partnership with Investor Education Fund, a non-profit organization founded and supported by the Ontario Securities Commission that provides unbiased and independent financial tools to help Canadians make better money decisions. To find out more, go to: GetSmarterAboutMoney.ca