Early this year, statistics have shown that the Greater Vancouver’s condominium market stays flat. To be exact, the prices of condo units have stayed almost the same since 2009, making the condo market seem unaffected by economic fluctuations. This may not be good news to condo owners who purchased their units before 2009 but certainly a thrilling prospect for buyers today.
The debate on whether buying a condo is more beneficial than renting an apartment rages on, but for housing and financial experts, it all boils down to which option makes more financial sense in each individual case. GlobalPost.com contributor Monica Dillon cites a compelling reason to own a condo unit.
One of the biggest advantages of owning a condominium is building equity each month as a property owner. Although condos appreciate at a slower rate than single-family homes, you’ll still build equity 100 percent faster than if you were renting an apartment, since renters can’t build equity at all in property they don’t own.
Investopedia.com defines equity as the difference between the current market value of a property and the amount owed on the mortgage. This is actually what pre-2009 condo buyers frown upon; after all, the equity they have on their property doesn’t go up as the market value for condos for sale in Vancouver stays low. Even so, it doesn’t change the fact that condo owners hold equity well into the future, while renters won’t. There’s also the fact that throughout the life of a mortgage, the monthly payments are almost identical to rental fees. Dillon further adds:
As a renter, your monthly costs may not be very different from that of a condo owner so there are no clear advantages or disadvantages. Renters pay insurance, utilities, phone service, cable and internet, if you choose to have them.
To offset at least a portion of the monthly fees for the unit, the owner can decide to rent it out if circumstances permit. This way, the rental income can help pay off not just the mortgage but also the necessary renovation and maintenance expenses for the unit. To make the most out of any condo unit purchase, prospective buyers would do well to deal with a real estate company like Vancouver Canada Homes that when it comes to negotiating condos for sale in Vancouver.
(Source: Condominiums Vs. Apartment Advantages & Disadvantages, GlobalPost.com)