Financial Freedom

When it comes to owning a home, the upfront costs can be staggering – from a substantial down payment to closing costs and ongoing maintenance expenses. However, renting provides unparalleled financial flexibility. With lower upfront costs and predictable monthly payments, renting liberates your finances. It grants you the freedom to allocate your capital towards investments, savings, or experiences that truly matter. Imagine living in a LuxOasis apartment, where the beauty is matched only by the affordability – less than $1700/month, inclusive of utilities, Internet, and tenant's insurance. No property taxes or maintenance worries, just financial liberation.

For those embracing the remote work lifestyle or navigating the gig economy, there's an added bonus – a substantial tax refund with rent being 100% deductible!

Considering a one-bedroom apartment averaging about $200,000:

• Renting: Imagine leasing one of our stunning, comparable apartments for less than $1700/month, inclusive of utilities and tenant insurance. Forget the hassle of property taxes and regular maintenance expenses – your worry-free lifestyle begins with LuxOasis. Unlock the door to luxurious living with LuxOasis!
• Owning: Acquiring the identical property with a 5% mortgage rate entails more than a minimal $10,000 down payment. Your monthly living expenses would amount to an average of $1749. Here's a detailed breakdown:

 

Cost	Expenses
$1149	Mortgage Payment
$300	*Condo fee
$100	Electricity & Internet
$100	Homeowner insurance
$100	Maintenance fees

 

* Condo fee is subject to potential increases at the condo board's discretion

Furthermore, while rent is entirely tax-deductible when working from home, the monthly expenses associated with homeownership may not be as tax-friendly. According to the guidelines of the Canada Revenue Agency, neither mortgage interest nor principal payments qualify for tax deductions. This translates to an additional $300 per month in personal income tax for homeowners.

In summary, the cost of owning the same property is significantly higher than renting. In the example provided, opting for homeownership would incur an extra monthly expense of $350, in addition to the upfront $10,000 down payment.

Avoid Market Risks

The real estate market is notorious for its unpredictability, with property values fluctuating and impacting homeowners' equity. By opting to rent, you gracefully sidestep the uncertainties tied to market volatility. Bid farewell to the anxiety of market crashes affecting your home's value and embrace the tranquility that comes with a stable and predictable rental payment.

Investment Versatility

Renters enjoy a unique advantage – lower upfront costs pave the way for investment versatility. With the financial freedom renting provides, you can strategically allocate your funds. Whether it's directed towards personal development, entrepreneurial ventures, or other investment opportunities aligning with your financial goals, renting offers the flexibility to build a diverse portfolio.

Imagine purchasing a single-family home in Toronto back in 2016 at $730,000 and selling it in 2023 for $1,103,000. This represents the average return on investment in one of Canada's most bustling cities, with the potential for even higher returns in rapidly growing urban centers.

Beyond the purchase and sale prices, various associated expenses must be considered:

• The total cost of homeownership over 7 years amounts to $804,100:
  • Property taxes: $5000/ year * 7 = $35,000
  • Legal fee at closing: $1500
  • Maintenance fee: $1200/year * 7 = $8400
  • Land transfer tax (4% in Ontario): $29,200
  • Purchase price: $730,000 (assuming cash payment, though higher with mortgage interest when taking out a loan)
• Expenses incurred before selling, resulting in an actual take-home cash of $1,037,500:
  • Realtor fee: $44,000
  • Legal fee: $1500
  • Cosmetic rennovation to increase resale value: $20,000

This equates to a 29% return on investment over 7 years.

Comparatively, if you were to invest the same $804,100 in the S&P 500 in 2016, by 2023, it would yield a 104% return on investment, amounting to $1,640,364 upon selling all your S&P 500 shares. This is $602,864 more than if the same amount were invested in a house for residence. Even factoring in the average monthly rent of $4,000 for a 4-bedroom single-family home (because you need a place to stay), the profit remains nearly $267,000 higher compared to purchasing a house.

In a nutshell, LuxOasis's rental communities redefine the narrative, making renting not just a choice but a smart and liberating lifestyle decision. Say goodbye to the heavy burden of a mortgage, market uncertainties, and limited investment options. Embrace the freedom and flexibility that renting with LuxOasis brings, where your financial well-being and lifestyle aspirations take center stage.