Renting Vs Buying Property In Edmonton, Which is Better? Edmonton mortgage broker

Renting Vs Buying Property In Edmonton, Which is Better? Edmonton mortgage broker

Many of our customers ask us whether renting property or buying in Edmonton is better investment. Our answer to this frustrating question is sometimes it is better to rent and at other times, buying is better.

The main reason for this is that it all depends on what the real estate market is like in Edmonton at the time the question is asked and your current life needs. The simplest answer is when the market is low in Edmonton, you should buy. The reason for this is that inevitably the market will go back up and you will benefit from the appreciation of your property in a tax free manner.

When the real estate market in Edmonton is high. Sometimes it is better to rent because your house will most likely go down in value. It is not the best long term strategy when you are life planning to buy this way.

I have seen horror stories of people that have lost hundreds of thousands of dollars in equity from buying in high time. Some of these people have lost their homes or have had to declare bankruptcy in order to get out of their mortgages. As long as you are making your payments, the bank will not foreclose on you. So like the stock market, it will be a waiting game that you will have to ride out until you can sell your home.

7 Reasons you should buy in Edmonton now. Renting vs Buying

  1. The Edmonton Real estate market is very low

Right now the market in Edmonton is very low, making it more affordable to buy a property here than it has been in the last 10 years!

2. Appreciation (when property values go up) Tax free money!

Property values will go up eventually and all of the money you make will be tax free if it is your primary residence…too bad revenue Canada

3. You will pay yourself instead of a landlord

As you willl see in the calculation below, you will be paying yourself huge over the years by buying instead of renting. It helps you create a nest egg.

4. There are super low interest rates right now

Interest rates are super low right now, and you can take advantage of this for up to a 10 yr term. The lower the rate, the more money goes into your pocket!

5. First time home buyer programs

The new first time home buyer program can help you lower your payments even more right now. Call me if you have questions about this.

6. Borrowed downpayment mortgage options

Some lenders will allow you to use a line of credit for some or all of the downpayment. They will also allow gifts!

7. You will be settled into YOUR HOME

Your house, your rules. No landlord possibly booting you out before Christmas because they want to sell.

8. School zones

If you have kids, you will know how important it is to be in the right school zone for your kids. When you own in the area you want your kids in, it is permanent.

9. No one can take this from you

When you own, it is yours. I can’t even count how many times I have met clients that have been told to move from their landlords for dumb reasons.

10. Rental rates in Edmonton are high right now

I work in an office that does property management, rental rates are high and there is a lot of competition for the rentals in Edmonton right now.

11. Cheapest form of life insurance

You can get really cheap life insurance when you buy, securing your family for life. If something happens to you, the house will be paid off!

5 Good reasons to rent in Edmonton

  1. You cannot qualify for a mortgage
  2. Divorce or separation
  3. You may be moving to another city
  4. Bankruptcy
  5. Health problems and mental health issues

Best way to get approved for a mortgage in Edmonton

The best way to get approved for a mortgage in Edmonton is to deal with an Edmonton mortgage broker that understands real estate in the city as well as the mortgage market. We can help you navigate this tough decision. We also have access to more lenders than a regular broker or banker, making it easier to get approved for a mortgage.

Basic Rent Vs Buy Comparison

If you require a single family home with 3 bed or more almost anywhere in Edmonton with a garage.

Buy Calculation

Purchase price $200, 000

Mortgage amount based on 5% down $10, 000 (can be borrowed): $908/mth

Utilities approximately $200 per month

Property taxes $166/mth

Total expense to buy: $1274/mth total expense

Same property monthly rental expense

Rent amount $1500

Utilities          $200

Total monthly expense: $1700/mth

Total savings by purchasing rather than rent: $426/mth

How much money will I make if I buy the property over 10 year term:

Approximately $60, 000 from payments

  • $51,120 in total monthly savings

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Total amount you will put in your pocket after all interest on the mortgage is paid plus monthly savings.

$111,120 over 10 years!

Will buying property in Edmonton instead of renting save me money?

Yes based on the calculation above, you will save a significant amount of money by buying a property rather than renting.

How can an Edmonton mortgage broker help me?

As a mortgage broker in Edmonton, I can build you scenarios like this one so that you can see side by side renting vs buying in Edmonton. I will tell you honestly and factually if it makes more sense to rent or to buy at the current market state in the city.

Rent VS Buy home Calculator

You can visit our website for a rent vs buy calculator, or you can just call me and I will do a comparison for you. Our site is www.buyedmontonhome.com

Should I rent after I sell my house?

Lots of people ask me this question, and in my opinion it can be a dangerous slope. You want to buy for your long term savings and stability. When you rent, it is easy to open the little savings you have and put you in a situations you may not be able to buy.

Can I use my line of credit to get a mortgage in Edmonton?

Yes you can use your line of credit to buy a house and get a mortgage. Many lenders do this and as long as you can debt service the line of credit payment, it is no problem.

Bad credit, can I get a mortgage in Edmonton

Even if you have bad credit you may be able to get a mortgage in Edmonton. If you have a large downpayment 20% down. You should be able to qualify through a B Lender or Private lender.

Should I rent to own in Edmonton?

No you should not. I see many people that search this exact thing considering a rent to own. I have also seen many people ripped off by doing rent to owns. If you plan on doing this, make sure it is with a large company and have me look over the documents first. One client of mine was just ripped off $75k on a rent to own. It can be a disaster…

Also Read 7 things you need to know about flipping houses in Edmonton.

Or 

7 Reasons Buying an Edmonton Foreclosure is not a good deal

Sean Rampersaud Edmonton Mortgage Broker

Sean and Radika Rampersaud are a family team of Edmonton mortgage brokers. They specialize on helping their clients to get the lowest mortgage rates in Canada by leveraging high volume and multiple lenders. “We want to help our clients not only to get the best rates, but also to make the home buying process easier.”

Radika Rampersaud Edmonton mortgage Broker

Have One Of Us Call You Now For Free Or Contact Us Now At
780 278-4847

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10 Things Realtors can do to get more business for free in Edmonton

10 Things Realtors Can do to get more business for Free In Edmonton!

1. Place Foreclosure ads on Kijiji

Kijiji can be used for free, you can place multiple ads in different categories on Kijiji to generate calls and traffic.

2. Cold Call for rent listings On rent fast

A lot of landlords are sick of renting their properties out and will want to sell. Get to them first, before they call the realtors they already know.

3. Cold call for sale by Owners 

Also known as fsbo’s can be found on may different sites and on for sale signs in neighbourhoods

4. Blogging

Blogging will create some traffic to your website. Ask me how to convert this traffic into leads!

5. Facebook and social media

An easy reminder every few days that you are a realtor and are doing big things will eventually lead to some sales if you present yourself as a professional.

6. Call your circle of influence

These are the people you know, like and trust. They should be your biggest advocates. The key to this is asking them the awkward question of if they know anyone that would like to buy or sell. Once you do it, it will be implanted in their minds that you need them to be successful.

7. Say happy birthday to past clients

This is the warmest way to get into contact and remind your past clients that you exist and that you care about them. They may reward you with some leads!

8. Reach out to one builder per week.

Builder calls are tough…I know. If you call just one a week, you will eventually build a partnership and become top of mind for a builder!

9. Door Knocking

No One in the world actually likes to do this, but it works and if you want some free business today. Door knocking is the key.

10. Leave your business cards at local businesses

I can’t count the amount of times I have left small stacks of cards at my hair dresser, the dry cleaner or at the local donair shop and had call backs. It may not happen right away, but it is fast and easy for you to do.

And finally, if you want more deals approved and get the best communication in the industry. Have your clients call me as their mortgage broker. The most aggressive mortgage broker in the city of Edmonton!

Sean Rampersaud Edmonton Mortgage Broker

Sean and Radika Rampersaud are a family team of Edmonton mortgage brokers. They specialize on helping their clients to get the lowest mortgage rates in Canada by leveraging high volume and multiple lenders. “We want to help our clients not only to get the best rates, but also to make the home buying process easier.”

Radika Rampersaud Edmonton mortgage Broker

Have One Of Us Call You Now For Free Or Contact Us Now At
780 278-4847

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