Why buying Real Estate
is the Best Option.
Would you like to walk away from your years as a student
with a handsome nest egg? Or would you prefer to waste thousands of
dollars on rent? Making a profit from owning Lethbridge real estate
may be easier than you think and a lot more lucrative.
The first job for any potential student
at Lethbridge University or College should be to sit down and work out
exactly how much they expect to spend on rent during their years of
study. Then work out a mortgage payment versus the cost of rent. To
make this easy, we have included a
Mortgage Calculator on our site and provided an example below.
Should you
decide to rent, it is entirely likely that you
will have to pay $450 to $550 per month for a good single room
(including utilities). That means $3,600 to $4,400 a year. If you keep
your room during the summer season, your annual cost would increase to
anywhere from $5,000 to $6,000 (this allows for a discounted rate
during summer).
Now, as a comparison, lets take the cost of a $150,000
mortgage at 2% interest, with a deposit of 10% down ($15,000), 30 year
amortisation, 5 year term. The calculator shows an amount of $508 per
month.
On the
assumption that as a renter you would
pay $500 per month (average), your mortgage payments in comparison
would be about the same. However, as a home owner, you can now become
a landlord and charge your room mates $500 per month. With one room
mate you are living rent free, with two, you will be making a nice
profit each month instead of a net loss. Rates may change and mortgage
payments may rise, however, the same has to be said for rents.
So far, the
situation is definitely in favour of
buying rather than renting. However, the real benefits occur after
graduation, when you can look forward to cashing in your Lethbridge
real estate holding and picking up the profits from your property
appreciation. It is generally considered that real estate prices
double every 10 years. So, if you were to spend 5 years at Lethbridge
University, your $150,000 property should have appreciated by about
$75,000 - a very handsome profit. By comparison, you could choose to
spend anywhere from $16,000 to $30,000 on rent during the same period
- a very depressing loss.
Team Miller can help:
We have worked successfully with
Lethbridge University students and their parents to
purchase all types of Real Estate in Lethbridge. We understand what
you need, we understand budget restrictions, and we know the right
people to help arrange financing and smooth your way to becoming a
property owner, rather than a tenant. This could be the opportunity to
set yourself up for years to come.
Please give us a call.
We offer a zero pressure environment, while maintaining a high level
of competency and professionalism. We treat you as we would like to be
treated ourselves.
