Rent Versus Buying

[snafu]

I think each person has to crunch numbers and examine lifestyle regularly. If you are moving up career-wise and re-locating, renting make sense. If you are disciplined enough to faithfully use the differential between ownership and rental for investment, rental makes sense. When the RE market is in a bubble, rental makes sense.

Alternatively, you can be in a rental with too many rules, neighbor and maintenance problems that make life unpleasant. You can't have the pet you desire, can't paint the rooms your preferred colors or modify structure. Some complexes don't allow externals like a satellite dish etc.

You can generate extra income from ownership to either paydown the mortgage or participate in an investment program by renting the basement to a grad student. You can develop a home based business in your garage [like Bill Gates]. There is no one size answer

[DebbieL]

Livingalmostlarge,

Yes - I'm well aware that it depends where you live (of course). That is why I say for me, where WE live, it makes no sense to buy. Maybe it's different in Kentucky (for example). All I know is that for me to buy it would cost at least double what I pay to rent. I want a life - not to be chained to a housing payment. We also have much higher income taxes here and mortgage interest is NOT deductible here. Incomes are way too low to support these ridiculous prices for any real length of time. The bubble will burst, just like the tech one did, just like they all do. Victoria has always been expensive, but not always this out of whack with incomes.

PS - I rent a 2 bedroom, 2 bathroom place that is quite nice and roomy. Good enough for me. I couldn't buy it at today's prices (nor would I be willing to pay that much). The cost of buying about ANYTHING here right now is at least twice the cost of renting (sometimes much more than that). Rents have to be based on reality (what people are actually able/willing to spend for accomodation based on incomes) whereas the prices have been largely driven by speculation/greed/fear of being prices out forever, etc, etc. Rents are much firmer based in reality, and prices sooner or later will have to come down.

[irmanator]

irmanator - I didn't mean to direct that last post at you. I was just throwing it out there for everyone.

its ok I didn't take it bad.

[snafu]

Responding to DebblieL: Like Vanc. off-shore speculators kick-in a % to buy a property, primarily to move money out-of-their home country. It's a 'just-in-case scenerio for Asians for example. They hope the property will appreciate with time but see it as a safety line as Canada is considered rock solid, free from government nationalization policies or shennanigans.

[LivingAlmostLarge]

Debbie, don't talk to me about Canada, I'm married to a Canadian. We've looked at Vancouver for living, actually we're going at Christmas. We've also looked at Toronto. Trust me it just mirrors certain areas of the US. Other areas are not so terrible in Canada.

However is a 2bd/2ba condo in victoria $600k? I see that a house is $649k. COndo is only $479k. So you can't keep quoting $600k house and yet your renting an apartment. Apples to apples okay? So what does your apartment rent for $900? And what is the cost? 400k?