Buying A Second Home
Believe it or not, but buying a second property is not an exclusive privilege for the wealthy. There are actually several compelling reasons why everyday middle-class Canadians should go ahead and buy a second home. Here are just some reasons why you should consider doing so.
How Long Is Your Commute?
If your commute eats up a lot of your non-working hours, and is often gridlocked by the congestion on the highway, consider the flexibility of getting a second property closer to work. You may be saving a lot of money by living outside of the GTA and commuting into work, but consider this: the money that you are putting into the wear and tear of your car, or into your transit pass, as well as the opportunity cost of spending several hours on the road commuting, can instead go into having a place steps away from work that’s the perfect size for you. It will free up your time to live a healthier lifestyle.
How Often Do You Go On Vacation?
This is a huge question. Some people love to travel but find it difficult to plan a trip or overspend on a trip. Others are growing a family and struggle to take their little ones far from home. Having a cottage or vacation home can give you a peaceful retreat. It can be a dedicated place you spend your weekends and build memories with your family. You can pay for it bit by bit over time, knowing that it is both a great emotional and financial investment. And you will always have somewhere to escape to! Cottages and vacation homes come in all shapes and sizes, you’d be amazed how affordable some of them can be.
Do You Have A Child Starting Post-Secondary Education?
While Toronto is bursting with great universities such as the University of Toronto, York University, Ryerson University, the Ontario College of Art and Design, George Brown College among many others, your child might have aspirations to seek education outside of their own backyard. Dorms can easily rack up costs, and there is no guarantee that your child will find the most reliable landlord in whichever student housing they seek out. To alleviate this issue, many parents are looking to invest in a second property close to their child’s school. It’s a great way to ensure the safety of your child’s living conditions as well as building equity over time rather than seeing all that money get dumped into rent.
If you are looking to make your second property an income property for whatever reason, make sure you do plenty of homework beforehand! There are several tax advantages to having an income property, but equally, there is a lot of responsibility with becoming a landlord. If you need help doing your real estate homework and would like to know more about buying a second home, please send me a message here! I would love to help you make the best financial decision for your future.