Buying vs Renting in Kelowna, British Columbia

Here's some food for thought…the average rent for a 2-bedroom unit in Kelowna is currently $1,600 per month.

What does this mean for those who are renting in the Kelowna residential market?

• 1 year of rent is equivalent to $19,200
• 3 years of rent is equivalent to $57,600
• 5 years of rent is equivalent to $96,000
• 10 years of rent is equivalent to $192,000

Conventional wisdom tells us that money spent on rent over time is being flushed down the toilet because you're paying off someone else's investment. If we look at the flip side of this, for most people who can muster the down payment, buying is the better choice. When you own your Kelowna property, that $1,600 per month will be going towards your own investment and not someone else's.

Although my view is BUY over RENT, there is something to be said about the carefree life of a renter. When you rent a property, you aren't on the hook for any maintenance or repairs caused by wear and tear. You save significant money in the long run since you don't need to worry about tradesmen or landscapers to maintain your property. If you rent, you'll be in a position to move easily should the need arise.

So Which Is Cheaper: Buying or Renting?

Currently, due to high rental demand and low mortgage rates, the cost to rent a property is higher than what the mortgage payment on that same property would be in Kelowna. According to the large rental data aggregator, PadMapper, a one-bedroom unit is $1,030, whereas a two-bedroom unit averages around $1,550. You can currently buy a relatively new, one-bedroom one-bathroom townhome in Kelowna for around $200,000. With a 10 percent downpayment, this could mean your monthly payment would be around $900 per month—which means you could actually be saving around $200,000 per month just by not renting.

Have we piqued your curiosity? We'd love to sit down with you to discuss your options. Owning a home is easier and more affordable than you might think! Give us a call at 250-717-3133 to learn more.

The Benefits Of Buying Real Estate in Kelowna

In addition to gowing your personal wealth, Kelowna is a great place to buy your first home. As the largest city in British Columbia's Okanagan Valley, Kelowna presents homebuyers with an endless array of unique options to enjoy popular metropolitan amenities while also enjoying a great quality of life. The desirability of the sunny Okanagan only gets better and better with each passing year, so selling likely won't be an issue when the time comes to change things up.

The condo market in Kelowna is perfect for young professionals, while townhomes and semi-detached properties are perfect for young families and retirees. These low-maintenance living options are sprouting up all over the city, offering unbeatable access to public transit and the downtown core. Many of these spaces include additional storage as well, so you can store your recreation equiptment with ease when you're not out on another grand Okanagan adventure.

On the fence about buying? Ask yourself these questions first:

• Where are you going to be in five years?
• Are you in a good financial position to buy a Kelowna home for sale?
• What about the "hidden costs" of home ownership?
• Will home ownership impact you positively should you choose it?

Typically, when you choose to buy a home (rather than rent), you'll MAKE money as the asset appreciates over time. Remember, some of the wealthiest people in the world have built their fortunes through real estate.

Whether you're looking for a great investment property, are a first-time home buyer who needs advice, or have finally decided to BUY and NOT RENT, let us help you. Contact Vantage West Real Estate Group online or give us a call at 250-717-3133 to get started.