Renting an apartment does have some appeal to certain people. Depending on your lifestyle, it can give you a sense of freedom that others might envy. Your landlord is responsible for the maintenance, cost of repairs, and insurance. You can come and go as you please. And if you don’t like where you live, you can pack up and move as soon as your lease expires. With all the perks of renting, why would anyone consider buying a condo, especially in Winnipeg? The truth is the benefits of owning real estate, even a starter condo, far outweigh any advantages you have as a tenant. The obvious benefit is financial stability, but owning your home offers far more joy and freedom than you realize. 

A Different Kind of Freedom

Buying real estate of any kind comes with its share of responsibilities. If you didn’t feel like an adult before, you will definitely feel like one after your transaction closes. You’ll have visits to the lawyer and last-minute phone calls with your real estate agent to ensure nothing goes awry on your closing day. Then, you’ve got property taxes, utilities, and a house to take care of! 

Does this mean your carefree days are behind you? Not at all. Owning a condo just comes with a different type of freedom from renting. Unlike renting, your condo is truly your own. While you should get approval from your management company before undertaking significant projects, you can paint and restructure your home however you see fit. 

Plus, nothing beats the pride of owning a home, whether it’s your first or your tenth. Every time you turn the key, you may have to pinch yourself that this little chunk of paradise actually belongs to you! That feeling of accomplishment is something you’ll never get when you’re renting from someone else.

Why consider a condo in Winnipeg? Beyond the financial benefits, it’s a fun and exciting place to live. See for yourself in the posts below:

• A Guide to Winnipeg’s Entertainment District
• Another Snow Day in Winnipeg? Here’s How to Keep Yourself Busy
• 5 Reasons to Move to Winnipeg Right Now

The Hidden Costs of Renting

Renting has its perks. But it also has a lot of drawbacks. One of these is a lack of control. Depending on where you live, rental costs are increasing rapidly. It may seem backwards that the cost of renting is going up as housing prices decrease. Still, it is a trend happening in several major cities across Canada. While Winnipeg remains one of the most affordable cities to live in, even we have been affected. According to Zumper, the average cost for a one-bedroom apartment is now $1,200, a 9% increase over 2022. Every dime spent is gone forever, without building equity. And the costs aren’t just financial. 

You live in the home, but you don’t own it. Once your lease expires, your landlord can raise the rent according to the city guidelines. They may even decide that they need the house for their own use. If that happens, you have no choice but to find a new suitable residence. When you own, you have the peace of mind of knowing you won’t have to leave until you’re ready.

Winnipeg Real Estate is Still Affordable

With all the benefits of owning, why wouldn’t everyone buy a home? The price of real estate is a common deterrent. Plus, there are the closing costs, property taxes, and utilities to consider. Coming up with a down payment can also be a struggle, especially in cities like Toronto and Vancouver, where the average price of a small condo is creeping up over half a million dollars! A down payment on a $700,000 purchase would total $45,000. That’s what you would need in cash to even qualify for a mortgage. It’s no wonder buying a home is so far out of reach for so many people!

But in Winnipeg, it’s a different story. Houses and condos are still affordable, especially compared with other major cities in Canada. The latest market report shows the average price of a condo stands at $253,000. Not only would your monthly payments be more manageable, but you need less cash available upfront. Since the purchase price is under $500,000, you only need a 5% down payment, which works out to $12,650. Now, you own a valuable asset, and no one can raise your rent or evict you for any reason.

Understanding disclosure certificates can be the key to a successful purchase. Here’s What You Need to Know About Disclosure Certificates When Buying a Condo.

The Financial Benefits of Owning Your Own Home

Have you ever heard the term “property ladder”? In real estate lingo, buying your first home gets you onto the first rung of the ladder, where you can begin building your equity and increasing your purchasing power. When you are renting, you don’t have a foothold. 

How does this work? Let’s say that you are not on the property ladder, meaning you’re paying $1,000 monthly rent. After ten years, that works out to $120,000 with nothing to show for it. 

Now imagine that $1,000 per month was going towards your mortgage. After ten years, your equity will grow substantially by paying down the principal of the loan. That’s not even factoring in how much your unit could appreciate over time! For example, in 2013, the average cost of a condo in Winnipeg was $194,269. In ten years, the value rose by almost $60,000. 

This increased equity opens doors and multiple opportunities for you. It can help you upgrade to a larger home if you wish. Or you may decide to purchase a second property as an investment. Of course, let’s not forget the biggest advantage of owning a condo rather than renting. One day, you will make your last mortgage payment, and your condo will become 100% yours. Imagine the financial freedom that comes with having no rent or mortgage to worry about! That thought alone is well worth considering getting into your first condo as soon as you can.

Do you have questions about the real estate market in Winnipeg? Our condo specialists are happy to guide you and tell you anything you need to know. Reach out to us today at info@goodfellowrealty.com or call 204-224-2551 to start the conversation.