What property types should you consider when buying a home? Here are some key factors to understand when making your decision!
The Canadian dream
People from all over the world are flocking to Canada in hopes of achieving the Canadian dream. One in every five people living in Canada are foreign-born, so what makes living in Canada so desirable? We cannot define Canadians by their skin color nor by the language that they speak, or by their religion. They are defined by their dreams and aspirations, as well as the set of values that many others around the world share. More Canadians are living happier and longer lives and more have a college level degree compared to Americans. So, while everyone living in Canada is in search of their own Canadian dream, they all share the dream of having a roof over their heads. There are many benefits that make living in Canada so desirable, such as the tax benefits and the social benefits.
Tax benefits and investments
Canadians have several home tax deductions that they can claim when looking to purchase a home. First-time home buyers can claim up to $750 in non-refundable tax credit through The First-time Home Buyer’s Tax Credit. Another plan that helps buyers purchase a house or for the construction of a house is the Home Buyer’s Plan, which allows for buyers to withdraw up to $25,000 from their RRSP. Looking to buy a new home as your principal residence? The GST/HST Tax Rebate (New Housing Rebate) allows for you to claim a new housing rebate if the house is less than $450,000 and it’s your principal residence. The Home Accessibility Tax Credit (HATC) allows for owners to make homes safer and more accessible for people that are disabled or have mobility impairments.
Homeownership is not only sought out because of the tax benefits but also because it is a smart investment. In recent years, home prices have been on the rise across Canada. Owning a home when prices are on the rise is a good long-term investment for when you are looking to sell in the future. Another way to increase the home value and get your money’s worth when looking at resale is doing home improvements. Making the home more sustainable will add lots of value to your home!
Owning a home has proven to have benefits that go beyond money. Homeownership has social benefits and allows for there to be more control over living space. People that own their home tend to be more involved in community activities and civic affairs; a higher rate of residential stability means an increase in electoral participation. Having more homeowners in the community also leads to a reduction of crime in the area since it is easier to recognize a perpetrator. Children of home owners tend to have a higher educational performance and are less likely to drop out. Families that own their homes are seen to be generally happier and healthier than those don’t own their homes. This is even after factoring out income and education levels that are known to correlate with positive health! Remember how Canadians were happier than Americans? Well, Canadians also have a higher rate of homeownership. Coincidence?
Homeownership is the ultimate Canadian dream. People looking to live in Canada can look forward to tax benefits that help make buying a home more affordable as well as the plethora of social benefits that come along with homeownership. Who doesn’t want to live a happier and healthier life in such an amazing country?
If you’re looking to make YOUR Canadian dream come true, come and visit us a Clinton Wilkins Mortgage Team. Let us help you make your dream a reality!