Quote:
Originally Posted by Hondaracer
So is renting a feasible reality for someone who could afford to buy? Renting above your buying power?
Posted via RS Mobile
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Yes and no. Here's a rule of thumb to consider...don't rent more than you can buy.
That works with cars and houses.
If you are forgoing the purchase of a modest condo that's within your budget so you can instead go and rent a pimpin' pad in Yaletown to show off to your friends-you are probably doing it wrong. Not saying its going to be the end of you, but your priorities probably aren't in order.
Same thing with leasing a car. If you are forgoing the purchase of a car, so you can instead lease a more expensive vehicle-once again, have at it if you want that, but your priorities probably aren't in order.
I think in a market where the prices are high, and the uncertainty is high, now would not be the time to buy...its time to rent and wait it out. Whatever you believe on the "will prices drop, and how far will they" issue, I think we can ALL agree on one thing: They aren't shooting up anytime soon. So, playing out a waiting game isn't a bad idea.
And let's also remember one other rule: Prices rise and fall because WE make it so, collectively. If everyone chose to lose faith in real estate, the prices will fall. There are outside forces that affect people's decisions, in the aggregate, but at the end of the day, a dollar has a value because everyone chooses to give it one. Otherwise, its a pretty piece of paper with a picture on it.