this post was submitted on 05 Oct 2023
61 points (91.8% liked)
Canada
7204 readers
336 users here now
What's going on Canada?
Communities
π Meta
πΊοΈ Provinces / Territories
- Alberta
- British Columbia
- Manitoba
- New Brunswick
- Newfoundland and Labrador
- Northwest Territories
- Nova Scotia
- Nunavut
- Ontario
- Prince Edward Island
- Quebec
- Saskatchewan
- Yukon
ποΈ Cities / Local Communities
- Calgary (AB)
- Edmonton (AB)
- Greater Sudbury (ON)
- Halifax (NS)
- Hamilton (ON)
- Kootenays (BC)
- London (ON)
- Mississauga (ON)
- Montreal (QC)
- Nanaimo (BC)
- Oceanside (BC)
- Ottawa (ON)
- Port Alberni (BC)
- Regina (SK)
- Saskatoon (SK)
- Thunder Bay (ON)
- Toronto (ON)
- Vancouver (BC)
- Vancouver Island (BC)
- Victoria (BC)
- Waterloo (ON)
- Winnipeg (MB)
π Sports
Hockey
- List of All Teams: Post on /c/hockey
- General Community: /c/Hockey
- Calgary Flames
- Edmonton Oilers
- MontrΓ©al Canadiens
- Ottawa Senators
- Toronto Maple Leafs
- Vancouver Canucks
- Winnipeg Jets
Football (NFL)
- List of All Teams:
unknown
Football (CFL)
- List of All Teams:
unknown
Baseball
- List of All Teams:
unknown - Toronto Blue Jays
Basketball
- List of All Teams:
unknown - Toronto Raptors
Soccer
- List of All Teams:
unknown - General Community: /c/CanadaSoccer
- Toronto FC
π» Universities
π΅ Finance / Shopping
- Personal Finance Canada
- BAPCSalesCanada
- Canadian Investor
- Buy Canadian
- Quebec Finance
- Churning Canada
π£οΈ Politics
- Canada Politics
- General:
- By Province:
π Social and Culture
Rules
Reminder that the rules for lemmy.ca also apply here. See the sidebar on the homepage:
founded 3 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
I wrote up a long reply that failed to post, but the TL;DR is that's not really the right way to look at it.
The cost of home ownership is the interest part of payments less home ownership costs plus home value appreciation vs. rental cost, then factor in the intangible personal value of home ownership vs. renting.
70% of a home's value in interest could be a bargain compared to rent over 30 years.
Edit: I just did some napkin math on my situation, and we'd need to have housing and land prices drop by 20% over the next 30 years and a major maintenance item every 1-2 years for us to lose out vs. renting. There's no way that's possible on that long a timeframe. Even if there's a catastrophic 75% market downturn, it will easily recover over 30 years at below-historical-average gains.
My mortgage payment plus property taxes is less than the going rental rate for an equivalent 3br suite, and I bought last year.
The thing that convinced me is that my mortgage payment stays the same every year while everything else goes up with inflation, including my salary.
We'll see where we're at when it's time to renew in 4 years but the way things are going even if it costs me an extra $1000/month I'm still probably coming out ahead.
Rent can go up 10-15% in the same amount of time as that fixed mortgage. If there's no rent control, it can go up much more than that.
Repair cost can be high too. Roof,drains, etc.
Can you try to repost the comment again. Would like to know the details. Was told renting is better than ownership, based on interest payments + taxes + maintenance vs renting and house appreciation vs investing.
Renting can win out if you diligently save and invest the difference between rent and a mortgage payment for the entire 30 year period. Then you can come out ahead.
If not, youβve spent 30 years making someone else rich with nothing to show for it.
I get that. But I actually do save the difference.
Plus I'm planing on going with a housing cooperative eventually anyway. I think focusing on building "real estate portfolios" is what got us into this housing crisis mess in the first place. Treating housing like infrastructure, like what housing coops do, removes that incentive and allows us to direct capital to actual productive sectors of the economy through investing into actual business producing companies.