Its 7:30 and tonight I am getting off early to hang out with my family.

Maybe next time!

M

Good to hear from you again.

Buying is better than renting.

I don’t have to prove this is correct in the course of my business because I am far tooo busy helping people buy and sell properties who agree with the above statement.

I’m looking forward to seeing your reasons/math why I’m wrong. Like you say, it shouldn’t be too hard.

Thanks!

Good to hear from you.

The proof is in the pudding that buying is better than renting.

Most people buy Real Estate in Canada rather rent it and 68% of Canadians own their own home.

I’m interested to see your math that shows renting is better than buying.

Good to hear from you and thanks for taking the time to comment.

I think buying is always better than renting for most people. You are free to disagree with me on this point.

Mortgage interest (please note I have excluded principal repayment)for most of the last 40 years has been less than rent and as of late with super low rates, way lower.

Once the mortgage is paid off, there is no longer any more interest payable, whereas rent continues perpetually.

If one factors in inflation to the calculation, ownership gets even better. Inflation pushes up real estate prices and reduces the relative value of the principal owed while rents tend to increase.

What are your thoughts?

I disagree with “at the end of the day, when you buy you are paying off your own mortgage” as an absolute statement. Better would be:

At the end of the day, when you buy you are paying off your own mortgage *plus the interest the bank is charging you to borrow money from them* — that money goes down the drain no different than rent money going down the drain. The amount that goes into principal paying off a mortgage could just as easily have been saved while renting. Which is better …? That’s what the calculation is for!

Thanks for your comment!

I’m unclear on what we would be trying calculate.

Would we trying to gauge someone’s net worth in 5 years if they rented or bought? Would we include other investments and their income? Who would we use? A median income earner for all of Canada/BC or the people I am working with?

There are so many variables.

Renting is a good option for some, but at the end of the day, when you buy you are paying off your own mortgage. If you can comfortably afford buying, I think you should.

What are your thoughts?

Why don’t you do a calculation to compare what a person’s financial situation would be like in 5 years if they bought now vs if they continued to rent for 5 years in an equivalent home and then bought?