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Originally Posted by Tapioca
Bingo. Renting a detached home is much cheaper than owning one.
However, if you're tired with living in someone's basement and want some stability because you're raising a family, the difference between renting a townhouse or 3-bedroom condo and owning a similar property is not that great, even when you takie into account property taxes, strata fees, etc.
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Agreed to an extent, but even mortgaging a lower priced home with a 25% down payment is a poor excuse and poor way to "save money" because the first 5 years your are in your mortgage, around 50% of the amount you paid in are on interest.
If one doesn't have enough down and one's reasoning for buying is "you save money when you mortgage, and not paying some one else's mortgage", then please, don't buy. That person will come out on top by renting.
Quote:
Originally Posted by westopher
This really sums up the big picture here. People are left with no money after their mortgage and living expenses, then they use credit for basically every form of entertainment and material possession they want and can't afford. Giving people "cheap" credit is whats eliminating the middle class. Everything the average person is buying is costing them 1.1x what it actually costs. Its not easy to get ahead when you do that.
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THIS! It kind of hit her in the face when the costs came out to be so ridiculous. She wanted to buy her own place before us moving out and renting, and she didn't realize she would be left with 0 discretionary spending for at least 5 years. I wouldn't say its eliminating the middle class, but rather weeding out the financially retarded, and burdening the rest of the society.