buying an apartment

I know I often oversimplify things but I see it this way:

10 years of paying into a mortgage results in an asset.

10 years of paying rent results in nothing.

It seems the only way you would end up losing more money than renting is if you tried to get out too quickly.

One advantage of buying - at some point you can get that sucker paid off.

If you are planning to rent during retirement (think 30 some years) - you better have a huge chunk of change put aside somewhere. You will also be at the mercy of market rates that entire time.

Yes your home is an investment but it is also where you live.

Buying right now may be a bad choice, however… I don't have to ask my land lord about paint/renos/what I bring in etc etc etc.

And in thirty years or so if I sell I will have a cash purse which I can use against something else like a bigger place. Or retirment. OR whatever.

Or

I don't sell and rent to someone else at a certain rate to cover my cost plus a bit of profit. While i live in a second location. The thing is if I can swing it right I can retire with income. So yeah… renting makes sense in some instances but the thing is, owning isn't just about the math.

The minimum savings of $70,000 over 5 years don't count for anything? That sounds pretty good to me, and that doesn't include any growth on that money - just savings over renting.

Pretty much impossible to project into the future, but I would say odds are in favour that we won't be seeing a doubling of condo prices from this point, if all we will have is a flat market you can't justify the math on a condo.

As I said before, if you want to buy for lifestyle reasons, you know wanting to paint the walls pink, then great. I agree that for some people that can be beneficial.

I just wanted to point out that when condo prices are at Vancouver levels, and rents are as low as they are it makes it for a rare situation where owning doesn't provide an added financial benefit.

Buying a property can be a great way to increase your assets while providing a place to live. It can also be a money pit. It depends where you are financially, what you are buying and for what length of time you can stay there without the need to sell. Real Estate dude, Ozzie Jurock was quoted saying, "the most money you make on your property, is the day you buy it." Basically, he was meaning that if you get a good deal on the property for the location, you'll make more money - duh.

For me, I wouldn't have the equity in our home today if it wasn't for the 3 properties I've owned in the last 15 years. There is no way I could have rented and saved that amount of money, no matter how wonderful of an investment plan I had.

And in thirty years or so if I sell I will have a cash purse which I can use against something else like a bigger place. Or retirment. OR whatever.

Just remember, that in 30 years time, when you do sell, you still have to live somewhere.

I think people often forget this part, they get excited that theyll have paid off a 500,000 dollar home, thinking thats money to live off of for their retirement, forgetting that if you still need to buy/rent a place to live in. The same market that might have made you a few bucks over the course of those 30 years may eff you when it comes to your next place.

I bought because when I returned to Van there were two options as a renter: pay way more than I was comfortable with to be in a place I actually liked but save nothing. Or rent something shitty that left me enough room in the budget to save.

My mortgage is marginally more than the expensive option, but it's my place, in the right neighbourhood and I love living there. It's a bit bigger than I need which should leave some leeway over the coming years to weather a few life changes. Buying/selling is expensive and it felt risky to go with a 1-bed 600 sqft place that I could easily outgrow. I had a down year last year and now I have a roommate in my second room to help with my bills (which is awesome).

Hastings-Sunrise is definitely a neighbourhood in flux and I haven't yet seen a change in my property value. But the Powell overpass project and the handful of new commercial and residential construction underway I expect it won't take long.

I'm definitely one of those people who needs a forced saving plan.

housing always goes up

renters only throw money away

there is never a bad time to buy

well at least all the cliches have been brought out. good job guys. not saying these aren't true sometimes, but they also aren't always true. real estate is a religion (cult?) here in Van …

real estate is a religion (cult?) here in Van …

Maybe because Vancouver is one of the most desirable cities in which to live, worldwide. That equals long term property value increases.

… That equals long term property value increases.

People talk about this like its a law. And its not. Most housing prices are pretty stable and will likely increase over a long time period. Overly-inflated housing prices may not necessarily follow that trend and are extremely vulnerable to lots of factors.

I currently live here:

Otherwise known as next to the new condo developments near the Olympic 'Village'. Jeez, what a miserable looking collection of apartment blocks. All destined to look even more utterly shit in 30 years time. I will be amazed and saddened if people want to 'invest' in these properties.

This one wins the award for being the most pretentious marketing exercise:

http://www.cressey.com/meccanica/

People talk about this like its a law. And its not. Most housing prices are pretty stable and will likely increase over a long time period. Overly-inflated housing prices may not necessarily follow that trend and are extremely vulnerable to lots of factors.

Well, it's historically true. What happens in the future is debatable but I guide my choices based on my best educated guess. I suggest everyone follow their own instincts.

Just remember, that in 30 years time, when you do sell, you still have to live somewhere.

I think people often forget this part, they get excited that theyll have paid off a 500,000 dollar home, thinking thats money to live off of for their retirement, forgetting that if you still need to buy/rent a place to live in. The same market that might have made you a few bucks over the course of those 30 years may eff you when it comes to your next place.

My point wasn't that I would have $500,000 to live off but that I wouldn't have to pay $????.?? a month in rent (this number rises with the housing market but seems to be much slower to drop when the housing market does). I will have about $2,000.00 a month more in disposable income once she is paid off.

I may also be able to downsize if I choose - I doubt I will because I love my pad and hate moving - but I could freeing up some cash. Or, I could rent it out whilst I rent a pad in warmer climes, or I could borrow cheap cash against it if I want to purchase commercial property or a business (I've actually already done this)

Well, it's historically true. What happens in the future is debatable but I guide my choices based on my best educated guess. I suggest everyone follow their own instincts.

Past data is no clear indication of future performance. Also, there are many analyses that show real estate provides no better return than any other investment vehicle.

Bottom line:

If one is buying real estate for a primary residence, treating it like an investment is a poor choice.

Would buy a house but would not buy a condo in Greater Vancouver area again.

So much cheaper and less hassle to rent. Heck, I can even quit my job if I want and not have to worry about a mortgage payment.