If you’re renting, you’ve likely become frustrated at some point during the process with the fact that you’re “paying your landlord’s mortgage” or simply “not getting ahead”. We’re here to do some of the math for you and help you realize that in some cases, home ownership could actually be more affordable than paying your rent!
The average rental price in Simcoe County for a 2-3 bedroom apartment on starts at $1,300/$1,400 per month and goes up from there, sometimes upwards of $1,800-$2,000 based on where you are located! Older apartment buildings are likely on the lower end, while full house rentals can reach that upper price range.Take a moment to think about the fact that you are likely spending $15,600 - $24,000 per year on RENT ALONE! This is not an investment, this is not money you will see any sort of return on. The sad truth is that you will never see that money again. Plus - Beyond this cost, many rentals also require you to pay your own utilities… Hydro, Water, Gas…Rentals used to include these details, but recent trends show less and less “all inclusive” rental prices leaving tenants to pay their own utilities on top of their already expensive rent.
The average list price of a “starter home” in South Georgian Bay (Collingwood, Wasaga Beach and surrounding communities) range between $340,000 - $400,000. But what does that mean for you as a current renter and affordability? We’ve done the math for you. (Note: these numbers are approximate, and can fluctuate with changing interest rates, downpayment size, and mortgage insurance)
Based on 3.39% interest rates
$340,000 Purchase Price with 5% downpayment ($17,000) = $729.07/bi-weekly ($1458/month)
$340,000 Purchase Price with 10% downpayment (24,000) = $690.70/bi-weekly ($1380/month)
$400,000 Purchase Price with 5% downpayment ($20,000) = $860.26/bi-weekly ($1720/month)
$400,000 Purchase Price with 10% downpayment ($40,000) = $814.98/bi-weekly ($1629.96/month)
While yes, you also have to factor in utilities cost, property tax, and so on, these are mostly costs you are familiar paying with your rental currently and are already used to budgeting for.
For similar prices to what you are currently paying – you could own your home and be investing in your future!
Is this still a little high for your budget? Try smaller communities on the outskirts. Or Handy Man Specials. Many communities within the Grey Highlands for example offer more affordable living than the hubs in our area. Feversham, Markdale, Dundalk just to name a few can offer more affordable prices! Keep your eye on the market as many great listings regularly pop up!
Next you’re possibly thinking “but I don’t have a downpayment!” – Let’s start planning! Did you know we have a Certified Financial Planner and Mortgage Broker on our team? We are a full-service team ready to help you plan your next steps in preparation for your big investment. We can help you plan your budget, see where you can save money and work with you to create a budget that will allow you to save towards your downpayment.
Real Estate is the best investment anyone can make. You will make money on your purchase in the future. Every dollar you put into your home, you will ultimately see back and often then some! Stop throwing your money away and contact us today to start your plan towards home ownership.