[LookitsMarkA]

some of my past clients, had sold their home and started renting even with a decent amount of income.

and vise versa, lots of people are happy with buying their new home home and do not have to rent anymore.

I'm curious,

whats your input? or experience?
I just want to hear your story or what you have heard.

[Spoon]

Just get a yacht. Don't even need to pay property tax.

[evlee]

I have been renting my 2 bedroom suite for 12 years now. 5 years ago i was approved for a loan but did not go forward, i was not convince the move would be a good one at the time. fast foward to present i am happy where i am and will stay as long as i can. my rent includes everything, after 12 years renting the owner has replaced the roof, washer/dryer, carpet to hardwood floors (heated), hot water tank, etc. In the end i am happy renting cus i do not have responsibility and i do not feel tied down, i know i am not building equity renting but i am saving money and investing a good amount for the future.

[finbar]

The rule of thumb for me is if I'm going to be in the locale for 5 years or more.

> 5yrs, buy

< 5 yrs, rent

Having recently sold my house and become a renter, it's nice to just make a 'phone call to resolve an issue and not have to break out the tools and equipment.

With respect to building equity, real estate goes down in value too.

[waddy41]

You might spend more on rent, but you save the headache (if you have a decent landlord)

+ apartment value does not nearly appreciate as fast as a house/property
+ you can get a decent basement suite for less than a mortgage...

[evlee]

You might spend more on rent, but you save the headache (if you have a decent landlord)

+ apartment value does not nearly appreciate as fast as a house/property
+ you can get a decent basement suite for less than a mortgage...

^^ my landlord and i have almost a family relationship, i have keys to the main house when they leave for holidays and visa versa. At one point i was picking up his kids from school, and was always invited to gatherings and i would show up for free food lol, the wife would always cook abit more so she could leave me some for dinner. Living with them is not all perfect at all, but with a lil communication any issues are resolved asap. my landlord was looking for a person who is responsible and no parties etc etc, i was looking for a place to rest my head every night without worries so it worked out for us.

[6793026]

I have been renting my 2 bedroom suite for 12 years now. 5 years ago i was approved for a loan but did not go forward, i was not convince the move would be a good one at the time. fast foward to present i am happy where i am and will stay as long as i can. my rent includes everything, after 12 years renting the owner has replaced the roof, washer/dryer, carpet to hardwood floors (heated), hot water tank, etc. In the end i am happy renting cus i do not have responsibility and i do not feel tied down, i know i am not building equity renting but i am saving money and investing a good amount for the future.

don't get me wrong, i agree with you fully.

if i was the owner, it would be this way around. I bought a place, got a decent renter who subsides me on paying on mortgage. for a 20 yr mortgage, i am 8 years from paying it off and owning 400k which the renter helped me for a good 120k.

so in a span of 20 yrs, he got 400k paid off give or take minor "upgrades" which maybe now 20k spent on the house.

[Great68]

Rented for 6 years, now own. Couldn't be happier.

Love being my own boss, and doing what I want with the place. I enjoy breaking out the tools and fixing/building things myself.

I hate co-habitation with strangers, so that limits my rental choices to full houses, and my mortgage is not much more than the cost of renting a full house around here (Victoria).

[ZN6]

Some buy and regret they can't move later on as the resources and commitment is daunting, some rent and regret paying for someone else's mortgage when they could have owned. It's about the person and needs. Like everything in life, there's a tradeoff.

[Euro7r]

There's really no right or wrong answer. Some argue buy, some rent. Everything we do in life involves some sort of risk and it's a risk that you'll have to take, in terms of whichever direction you decide to pursue.

[tool001]

i bought a place (condo) in burnaby regretted it, commute . etc. 2 years ago, bought a new townhouse in Vancouver, opposite park, with roof top patio, with view of north shore mountains (small development). couldn't be happier.

it all depends what u r looking for, and if u can find it and fork out $

i still have the condo, but planning to put it on the market now

[stewie]

has anyone bought a foreclosure house/condo?

if so, what were the risks? would you recommend others to do it? was it a headache/pain in the ass?

[LookitsMarkA]

has anyone bought a foreclosure house/condo?

if so, what were the risks? would you recommend others to do it? was it a headache/pain in the ass?



buying a foreclosure;

pros'
cheaper
a chance of a steal deal
usually banks renovate the property and put new appliances + etc

cons;
1.court date- Bidding is time consuming.
2. you can view the property but some banks wont let you do an inspection
(buyer's risk) and if you do, you have to put the money beforehand even with the chance that you might not win the bid


things to know;
you must have mortgage and deposit ready with you during the court date in case you win the bid
deposit is absolutely non refundable in case of default
since its a court sale; in case you were the 2nd highest offer and if the winning bidder defaults... you may be forced to buy the property even if you dont want to. (all depends in a time clause too)

[LookitsMarkA]

i bought a place (condo) in burnaby regretted it, commute . etc. 2 years ago, bought a new townhouse in Vancouver, opposite park, with roof top patio, with view of north shore mountains (small development). couldn't be happier.

it all depends what u r looking for, and if u can find it and fork out $

i still have the condo, but planning to put it on the market now

whats so bad about the burnaby condo? which area?

[KimLund12]

I guess people are now more into renting a home, they don't go for buying,consider renting more easy.

[KimLund12]

Although mortgage is now a days on high rates may be that is why people are not going for that.

[4444]

Although mortgage is now a days on high rates may be that is why people are not going for that.

wat?

[4444]

has anyone bought a foreclosure house/condo?

if so, what were the risks? would you recommend others to do it? was it a headache/pain in the ass?

i have in the US, was an easy process - had my broker do all the leg work (this was a bank owned foreclosure, not a courthouse auction.

in canada, because it goes through the courts, the courts aren't meant to sell for less than FMV, as such, you shouldn't be able to get a stinking deal like you can in the US.

as for home ownership, everyone's situation is different. I move around a lot, so for me it's a total financial investment only. from a financial point of view, there is a rule of thumb that if a property is <15x annual rent, you buy; >15x annual rent, you rent - this is just a rule of thumb, though, so many more things go into buying a property than that.

i also live in a place where my place would cost over a million euros and is >100 years old - i'd NEVER take on that kind of risk, so i'm happy renting.

[speediandy]

I'd rent right now but that just my choice and how much risk I want to take on. If you got the $$$ go ahead and buy.

[R1CED`]

dont mean to thread jack but didnt wanna create new thread.

im turning 25 and ready to finally move out. My work hours fluctuate depending on how many clients i'm booked but i'm doing pretty decent for someone my age. Another few more months of saving and I'll have enough for 20% down payment on an entry-level pad. I haven't done an in-depth pro vs con and the costs associated with rent vs buying..but just the idea of paying someone else's mtg seems like a waste. I am not settle down because I'm single and planning to move away for school, so I'd figure trying to sell a 1 bedroom apt few years down the road could just end up being more headache and potentially money lost than straight up renting.

My last year's income also seems peanuts because I didn't start F/T until pretty late but I have a good credit score and have a decent savings...i hear they are making it more difficult to get approved for mtgs?

What I really wanted to ask was if taking out a mortgage will it affect my chances of getting a large student line of credit? It'll be a professional program out of the country so the sLOC after 4 years is said and done will likely total to the value of a cheap condo. I understand there's so many different types of mtgs but I'm just curious if having an asset will hurt or maybe improve my chances of maximizing sLOC?

thanks for reading and forgive my noobness. :whistle:

[sdubfid]

dont mean to thread jack but didnt wanna create new thread.

im turning 25 and ready to finally move out. My work hours fluctuate depending on how many clients i'm booked but i'm doing pretty decent for someone my age. Another few more months of saving and I'll have enough for 20% down payment on an entry-level pad. I haven't done an in-depth pro vs con and the costs associated with rent vs buying..but just the idea of paying someone else's mtg seems like a waste. I am not settle down because I'm single and planning to move away for school, so I'd figure trying to sell a 1 bedroom apt few years down the road could just end up being more headache and potentially money lost than straight up renting.

My last year's income also seems peanuts because I didn't start F/T until pretty late but I have a good credit score and have a decent savings...i hear they are making it more difficult to get approved for mtgs?

What I really wanted to ask was if taking out a mortgage will it affect my chances of getting a large student line of credit? It'll be a professional program out of the country so the sLOC Tafter 4 years is said and done will likely total to the value of a cheap condo. I understand there's so many different types of mtgs but I'm just curious if having an asset will hurt or maybe improve my chances of maximizing sLOC?

thanks for reading and forgive my noobness. :whistle:

I see no advantage for you to buy especially if you plan to move/go to school, but you have to do the math for your own situation/finances. My opinion is you would be MUCH better off renting and staying disciplined with your savings/investing.

1. Rent is money you won't get back, there are no surprises or building assessments with renting.
2. Strata fees, taxes, mortgage interest, misc bills is money you won't get back.

[LookitsMarkA]

dont mean to thread jack but didnt wanna create new thread.

im turning 25 and ready to finally move out. My work hours fluctuate depending on how many clients i'm booked but i'm doing pretty decent for someone my age. Another few more months of saving and I'll have enough for 20% down payment on an entry-level pad. I haven't done an in-depth pro vs con and the costs associated with rent vs buying..but just the idea of paying someone else's mtg seems like a waste. I am not settle down because I'm single and planning to move away for school, so I'd figure trying to sell a 1 bedroom apt few years down the road could just end up being more headache and potentially money lost than straight up renting.

My last year's income also seems peanuts because I didn't start F/T until pretty late but I have a good credit score and have a decent savings...i hear they are making it more difficult to get approved for mtgs?

What I really wanted to ask was if taking out a mortgage will it affect my chances of getting a large student line of credit? It'll be a professional program out of the country so the sLOC after 4 years is said and done will likely total to the value of a cheap condo. I understand there's so many different types of mtgs but I'm just curious if having an asset will hurt or maybe improve my chances of maximizing sLOC?

thanks for reading and forgive my noobness. :whistle:

a. 1. Ill be happy to help you do a pros and cons list over coffee
2. it sounds like youre commission based income like me? if you are, mortgage specialist look at our income for the last 2 years compared to regular hour workers who usually only require 3 months of work and an employee letter

b. Its not difficult to get mortgages, The real change was that 20% is now the ideal downpayment to avoid CHMC mortgage insurance. but 5%down still exist +25years maximum for mortgages
C.
1. if you are discharging a mortgage byselling your property, it should not affect your ability to get a SLOC.
2. if you are going to keep having an income and keeping your property for rent while you go to school, you maybe able to use home-equity -LOC to pay for your school -i suggest comparing rates.
3. having an asset maximize the amount of most loans

[sonick]

This calculator does a good job in laying out the financials of buying vs renting... of course there are tons of intangibles that go along with it, but financially/logically this is a good place to start.

https://drive.google.com/uc?export=download&id=0B1HcgpIpVi4jelp2Q0kya1Y0akE

Source: Swan song ? Greater Fool ? Authored by Garth Turner ? The Troubled Future of Real Estate (http://www.greaterfool.ca/2014/03/11/swan-song/)

Also, no offense but having a realtor discuss a pros and cons list of owning vs renting is akin to asking a car salesperson the pros and cons of buying a new car.

[LookitsMarkA]

youve had some pretty bad experience with salesman havent you lol

well the only pros and cons list i can offer is to reevaluate your plans till you move out of town. I can educate you with the fees and process then we can pull some numbers out to see which is cheaper for you during the time frame that youll be staying here.


if renting is cheaper for your situation after the math done, why should i recommend you to buy?

[sonick]

youve had some pretty bad experience with salesman havent you lol

well the only pros and cons list i can offer is to reevaluate your plans till you move out of town. I can educate you with the fees and process then we can pull some numbers out to see which is cheaper for you during the time frame that youll be staying here.


if renting is cheaper for your situation after the math done, why should i recommend you to buy?

No I haven't had poor experience, but I feel it's a legitimate analogy. I am not trying to be critical in saying you or any other realtors are dishonest, but no matter how balanced you might be there is still an element of bias to it if in the end you benefit from one decision over another.

Even though renting is cheaper, as I mention there are many non-monetary/intangible reasons for owning, e.g. Pride in home ownership, having a home as your own, knowing you aren't paying another's mortgage, the comfort of 'forced saving' in paying your mortgage in building equity, comfort knowing a landlord can't kick you out of your home at any given time, satisfying parental/spousal/social pressure to own, etc.

I see both sides and try to have a balanced perspective. Each individuals situation is different, it's not all about money but it is an important part and is the only one you can clearly outline in a spreadsheet and is the same no matter what life/social situation a person is in.

[R1CED`]

thanks for the input

sdubfid, yes before crunching the numbers and digging a bit deeper into my answering my question, renting does seem like a safer bet.

mark, I appreciate your feedback but I don't think i'm ready to meet with a realtor unless i know for sure i'm in the market to buy.

sonick, none of the intangible reasons you listed with the exception of paying someone else's mtg really applies to me. Maybe if I get a shitty landlord that'll kick me out for no apparent reason. I've no social pressure to own and forced savings isn't that crucial as I'm already dilligent in saving living at home all these years. If I do buy it comes down to how much hassle/difficult it is to sell in a few years and whether or not having equity vs savings affect future school loans.

is the spreadsheet you attached similar to the calculators on CMHC website? ive seen you post it before...detailed yet to the point..thanks.

[sonick]

As far as I know calculators on CMHC/bank websites mainly just calculate how much your mortgage payments would be depending on what your down payment. The spreadsheet I linked gives a fuller comparison of the two situations.

Savings is one thing but investing is another. The considerations between buying/renting should be the costs of buying (fees, commission, interest) and the property's potential of increasing in value (i.e. equity) vs. the monetary savings of renting and the potential of growing that amount saved through investing.

If you are renting but then putting the difference into a basic savings account, you are potentially wasting the financial benefits of renting.

Hence the 'forced investing/forced savings' aspect of buying is a 'pro' to many as they don't have the time or knowledge to look into options of investing their money, and instead expect or hope their property will increase and thus be an investment in and of itself.

However, as you probably are well aware, the future of local real estate is widely debated. You'd have to do research and make the decision yourself on whether or not you think you will come out better in the end if you buy or rent.

[sonick]

Mini bump, this article was on the front page of The Province and gave an ok balance of both sides of the argument, although it does still seems like it leans heavily towards buying: Buy or wait: The dilemma for first-time B.C. homebuyers (http://www.theprovince.com/business/mortgages/wait+dilemma+first+time+homebuyers/9960333/story.html)

Including points I mentioned such as:

Some people argue that it makes more sense to rent and invest one’s savings in assets that deliver higher returns, he acknowledges.

“Not everyone is disciplined enough to do that,” Yu says.

Full disclosure though, due to some recent revelations, I am (unexpectedly) likely going to find myself buying in the next half year or so, due to the many intangible/inquantifiable reasons to owning; as I mentioned previously.

[sdubfid]

their credit union, Vancity, launched a promotion in which it contributes part of members’ down payment. The promotion convinced them the time was right to buy.

Anyone else find this scary?

[sonick]

^ Agreed it's pretty sketch; basically circumventing CMHC's minimum 5% down payment rules. Bank helping their clients live even FURTHER outside their means, pretty disconcerting.

Every bank is clamoring hand over fist to lock in buyers before rates go up and/or market corrects.

More info on the program: https://www.vancity.com/Mortgages/TypesOfMortgages/DownPaymentHelper/

[HondaCRZy]

Building Equity is awesome, that is why I prefer to buy

[4444]

Building Equity is awesome, that is why I prefer to buy

Have u ever considered that your property value will go down and you will actually lose your equity value?

This thinking is heavily flawed, especially if renting is significantly cheaper (which it is) and when you can invest and obtain 7-9% returns elsewhere

[HondaCRZy]

Does anyone want to buy with me and rent out? Heres how it works.

We are looking to purchase investment properties where we will pay the homeowner 65% upfront the negotiated selling price and we will pay the homeowner the 35% after 5 years plus interest (In the form of a secure investment greater than inflation).

The benefits are:

The Seller has more liquidity of assets and money and will have more money to work with during the five years in partnership.

The buyer gets to purchase a property without money down.

This is a Win Win Situation.

My mother made millions with her ex husband doing this.

[HondaCRZy]

Have u ever considered that your property value will go down and you will actually lose your equity value?

This thinking is heavily flawed, especially if renting is significantly cheaper (which it is) and when you can invest and obtain 7-9% returns elsewhere

It may stumble in the short run, but in the long run, property values normally always increase dont they?

Real estate is all long term.

[4444]

It may stumble in the short run, but in the long run, property values normally always increase dont they?

Real estate is all long term.

i'm not even going to try to explain to you that you are right, but at the same time wrong.

the fact that you even question yourself says something (especially considering what was just written above)

[123654123]

Does anyone want to buy with me and rent out? Heres how it works.

We are looking to purchase investment properties where we will pay the homeowner 65% upfront the negotiated selling price and we will pay the homeowner the 35% after 5 years plus interest (In the form of a secure investment greater than inflation).

The benefits are:

The Seller has more liquidity of assets and money and will have more money to work with during the five years in partnership.

The buyer gets to purchase a property without money down.

This is a Win Win Situation.

My mother made millions with her ex husband doing this.

family has millions doesn't have 10k to start a business...:lawl:

[Marco.911]

Being a home owner is an acceptance piece in culture. This is the American dream, own your own home.

For many Asian cultures it is much the same. It is a sign of power and stability and wealth.

At the end of the day, what makes sense with dollars and cents may not make someone feel good at the end of the day.

This is a car forum. I'm pretty sure most people would be better off taking transit or driving a used piece of shit car in order to improve their financial picture and yet, so many of us know buying a car is a money pit but it makes us happy.

It's something that we enjoy and we want and it is also a status symbol as well.


After all is said and done, I make very good money and could afford to buy a home in Vancouver with no mortgage (yes I'm talking about a SDH, albeit not a high end example) and yet I decide to rent.


Look at my example

Residence: Rent
Rent: $2000 per month
SQ/FT 1300 2 bd 2 bth

Cost per year to live $24,000


If I wanted to live in the same place as an owner

Residence: $960,000 (similar unit just sold on the floor below)
Tax $4,000
Strata (per year) $9000
Assuming I had no mortgage the $960,000 can earn 2.5% in a GIC for $24,000

Total cost per year is $37,000 per year.


So to own where I live is 54% more expensive than renting. To make matters worse, I earn a lot more than 2.5% in a year on my money. This last year was a bit of an exception to the rule due to market activity but I can very safely average 10% per year making the choice blatantly obvious, even after taxes in the highest bracket.

The downside is that I'm not a home owner and I can't be a part of that group (which is ironic since I actually do own a small condo in White Rock that I rent out which has dropped in assessed value from last year.).


The only reason people have been so gaga over real estate is the capital appreciation on the property. Prices will no doubt go up over the long term and the crash that many of us thought would happen, may or may not happen. The point is if you buy expecting prices to double in a few years, don't buy.

Like the stock market, be well diversified, don't over-leverage, and keep investing over the long haul over a mix of asset classes.

I was bullish on real estate back in 2002 all the way up to 2008. I since said no thank-you.

Again up to you. Run the numbers but just remember something:

Vancouver is a real estate town.
Banks, mortgage brokers, realtors, builders, the media, Rennie marketing, and many others in construction need the constant fuel of people buying real estate otherwise they're out of work.

Keep that in mind. Too many people have a vested interest in keeping things as they are and encouraging home purchase that is unwarranted and bias.

If you like owning a home and it makes you happier, all the power to you!