Buying a home is a major financial decision and because of that, many people don’t want to make the commitment of having a home, so they rent an apartment instead. However, renting long-term means that the money used to pay the rent is not creating any equity. Besides that, there are other benefits of buying a home instead of renting one.
While the cost of homes varies greatly across the country, the average amount that Canadians pay for a house is $495,000. While this is a lot of money, the good news is there are several tax breaks that homeowners in Canada can take.
Some of the most common tax breaks that homeowners may be able to take advantage of include:
- First-Time Homebuyer Tax Credit (HBTC)
- Home Accessibility Tax Credit (HATC)
- Medical Expenses Tax Credit
- GST/HST New Housing Rebate
- Rental Income
- Home Office
Homeowners who can reap the benefits of these types of tax credits may be able to get a few thousand dollars from the government. They can then use this money to make improvements to their home or make an extra mortgage payment.
Another major benefit of buying a home is the major financial investment they are making. Not only are they creating equity, but in most situations, they can turn around and sell their home for more than they paid for it. This is especially true of homeowners who take good care of their property and keep up with maintenance.
One more way for homeowners to increase the value of their home is to make updates to it on a regular basis. Specific remodeling projects to focus on when trying to increase the value of a home include:
- Add stainless steel appliances and quartz countertops to the kitchen to give it a modernized look
- Add usable square footage to the home, such as finishing the basement or building a patio
- Add a fresh coat of high-quality paint using a neutral color scheme
Due to the increasing senior population in Canada, it’s also a good idea to add accessibility features to the home, such as having a master bedroom and bathroom on the main floor, which will alleviate the need to frequently use the stairs. Bathroom contractors also recommend installing a walk-in or curbless shower, along with comfort-height toilets and a wider bathroom door.