While renting in Toronto may be cheaper than buying, research shows that Canadians who own their own homes become wealthier over time than renters. That's because a mortgage forces people to save and build equity simply by paying their mortgage every month. Homeowners are also at an advantage because of the tax benefits of owning a principal residence.

Considering the number of incentives available to first-time buyers, it may be a prudent financial move to say goodbye to the landlord. First-time buyers can get a break on closing costs from the federal government and on the land transfer tax from the provincial government. They can also borrow money for their down payment from their RRSP through the Home Buyer's Plan.

Real Estate has always been considered a Long-Term Investment. The real question you need to ask yourself; do I really want to pay RENT for the rest of my life? Generally, a home in Toronto makes financial sense if you are going to live in it for at least three, four, or preferably five years. When you buy you need to take into consideration the costs involved in buying a home, from appraisal fees and home inspection costs, and Land Transfer tax, all must be taken into consideration.

When people lose money in the Toronto real estate market it is usually because they did not own it long enough, they sold to quickly. This usually means within the first 3 years of the purchase. You cannot depend on making any real profit in real estate in the first 3 years. In fact, the market may fall after you buy your home. However, also keep in mind; the longer you own your property, history has shown us, you can be sure it will have increased in value when you come to sell.

Real estate has proven to be one of the most stable long-term investments there is. It is your guarantee of retirement security. Overall, in Toronto it is far better to own your own home than rent. Not only for the pride of ownership but because it is your only long-term hedge against inflation. With rental rates increasing constantly, there is no guarantee you will be able to afford them as the years go by.

Thinking about buying a home or condominium in Toronto?  Have questions about the buying process?  Request your free Home Buying Consultation.