Ask the Real Estate Expert – Ron Lagemaat, BSc. REALTOR®

RealEstateExpert

Ask the Real Estate Expert – Ron Lagemaat, BSc. REALTOR® 

The Right Investment?

When weighing the options involved in purchasing a home, there are emotional and financial factors to consider.  Most people can easily articulate their emotions such as a desire to be free of a landlord, to decorate and renovate as they wish, to set down roots in and enjoy the pride of homeownership.  Financial considerations can be more complex and less obvious.

One of the main benefits of home-ownership is tax free capital gains.  If a buyer purchases a home for $200,000 and sells it for $325,000, they can enjoy $125,000 in capital gains without tax.  In today’s economy, tax-free is a rare and wonderful concept!

Real estate also offers the benefit of being a leveraged investment.  This means that a mortgage allows a buyer to enjoy a home and take as long as 30 years to pay for it even as the value of the property increases during the intervening years. How does renting compare to purchasing?  First and foremost, renting does not build equity.  At the end of 25 years of renting, a person would have zero property assets.  As well, the types of properties available to rent vary greatly.

Clearly, purchasing a property offers many emotional and financial benefits.  The challenge, of course, is choosing the time, place and property where the investment will grow.   A well-built, attractive home that is maintained over the years is most likely to appreciate in value.

As an experienced real estate professional, I will provide you market-specific expertise to help you make decisions that satisfy both your emotional and financial needs far into the future.

(403)393-5582  / rlagemaat@sutton.com