Quote:
Originally Posted by Mr.HappySilp
That's seem logical for short term. What about 10years, 20 years or 50 years? Would you be ok renting till the day your die or enter an old folks home? After 20years or so if you buy the unit will be yours (shorter too if you add to your principle payment every year). Just suggesting. I wouldn't want to rent all my life so I could stop pay someone else forever.
I am too lazy to do the calculations but after you paid off your mortgage your only expense is proptery tax and maintance fees if you purchase which should come to up less than $1400 per month while renting you are always paying at least $1000 every month.
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Are you new here? Bc that was the stupidest post for a while.
If renting makes sense from a financial standpoint it is because:
1) over the long term, real estate goes up with inflation. This short term Vancouver effect is just that, short term. Leverage, if rates are low, is a beneficial part of inflation pacing growth
2) financial assets (diversified portfolio of equities and fixed incomes) way outperform inflation, and thus way outperform, dollar for dollar, real estate.
If you can get positive cash flow, it's a different story, but to blankly say 'would you be ok renting in 50 years' well, if I were sitting on $5M in liquid investments, I'd be fucking stoked to rent, especially if mr. Homeowner had less than half my liquid portfolio... But a house... That they're stuck in... That they can't sell within a matter of seconds...
This isn't a house buy vs rent issue, it's a financial investment issue