Quote:
Originally Posted by Tapioca
It's actually not as easy to sell and rent as people think it is. Sure, there are lots of rentals on Craigslist, but the majority are 1-bedroom apartments or illegal basement suites. A reasonably-sized family dwelling is actually tough to come by for a price that is cheaper than owning. Anything that is desirable (well-maintained, good location, etc.) is snatched up quickly. Of course, the majority of people on RS are outliers and winners at life, so renting is easy and affordable. But for those that already have equity/down payments, the difference between renting and buying is not that great.
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Quick examples (just to illustrate rent vs own):
Rarely Available-Vancouver West Whole House for Rent (South Granville) @ an insane 6200/month, you'd have to live in it 40 years, given that similar houses in the area list for 3-4mil
4 bedroom home for rent - Near Highway, Skytrain, & SFU <- ugly as fuck, but 2300/month. Similar houses in the area are 1.2-1.5mil, so, 45-50 years
Family Home in Ocean Park (ID 3051) <- older house in White Rock, 2600/month. Similar homes are 900k-1.2mil. So 30-35 years.
No easy way to factor in inflation, but rents haven't changed much since 2006, which is when we immigrated here. When you own, you'll have to pay property taxes and also general upkeep. It you sell, you're paying a shitload of commission to a realtor.
Now, let's compare to a market where you'd want to invest in. Say, Dawson Creek, which is booming and has very few rentals available:
Recently Renovated 3 Bedroom Utilities Included! | house rental | Dawson Creek | Kijiji <- 3bedroom, looks decent, 2000/month. Similar properties are 250-300k. So 12-15 years to "break even" vs renting.
And Dawson is probably not even a good example, since it's in the middle of a boom.
There is no way that owning in the Lower Mainland makes any financial sense whatsoever.
Edit: I'd rather pay rent to an absentee landlord that lives in Harbin and bought the house with his ill-gotten gains than to pay through the nose and be a slave to a bank for the rest of my life.