When I bought my first property in Vancouver, people asked me, why are you buying a house, shouldn’t you first buy a condo? My response was simple but confused everyone.
“I can’t afford a condo, I can only afford a house.”
For me, the issue was not down payment, fortunately I had that, the problem was that I had just moved back to Vancouver and had no job.
The great trick in the Vancouver housing market, especially for first time home owners and young families, is to skip condos, townhouses and 1/2 duplexes, and look for single family homes with 3 suites in them. Forget mortgage helpers, think mortgage payers.
And the math is simple: (Numbers based on East Vancouver, (Feb 2013)
Rent – 2 bedroom condo = approx. $1500/ month, $0 Saved on mortgage
Own – 2 bedroom condo = approx $1900/ month, $600 Saved on mortgage
Own – 4 bedroom Home with 2 rental units
= approx $1400*/ month, $1000 saved on mortgage
(*$3400/ month - $2000/month rental income)
Pay less, save more, get more!
Owning a home, you will pay less month to month, you will save more when your mortgage is up for renewal, you can get more space, plus of course more independence, more potential for appreciation…
Of course, you do need that pesky down payment!
Contact Noam for help making your next home work for you.