Discussions

Was listening to the radio the other day & a report was saying there is upward trending on renting & rental properties. Owning a home was getting out of reach for many. Consumer debt & social spending was negatively affecting millennials & their chance of homeownership.  
 
True? Are more people renting now than buying? Or is home ownership simply not a priority? Your thoughts?

I'm finding it's harder to buy. Prices of homes are high while wages are low. Top that off with a 1300 a month rent for a family of three and it's nearly impossible to save a lump some deposit in a relatively short period of time. It's kind of a catch 22. Rent & save money over a long period of time or stay with your family if they'll allow it to save. However, for someone like myself who has a family, my parents wouldn't really wanting us living there forever. So we're stuck. Believe me, if we could get a mortgage we would!!!

That's another new trend but really it's so expensive to own a home. Break down of owning a house $500-2000$ a month for mortgage than another 200-500$ property tax. Than add in another $300 a month for upkeep ( appliances, roof) than you get utilities 100-300$. Average rent is $900 plus $200 for utilities. So low end for owning $1000 not bad but not likely, high end $2800. Now rent is $1100. Add in the need for a down payment to buy and a decent credit rating and most people can't afford a home. Or don't have time to do the upkeep

over few years staying in your house once you move and sell you have money in your pocket.  
over few years rent a place once you move you have no money in your pocket the landlord has it all.

Depends where you live, we live in a small town outside of Brandon and houses here are way more affordable. We upgraded to our second house last year,finally sold our other house, paid it off and now have money for some renos.  
 
We are responsible for property taxes, house insurance, and fixing/replacing what ever breaks down. We also have freedom to do whatever we like to our house and yard and most importantly when we sell it we will have money.

Rent you have nothing, pay INTO nothing. Own you have equity, you have something substantial. Yes, with owning you have more financial responsibilities. But you can renovate if you want, you can have pets if you want, you have the freedom to do more in the space that you own. In the end it is cheaper to live renting, but owning, you have more financial leverage. Just my thoughts...

I don't think it's a case of wanting to rent vs wanting to own. Like I had said previously, it's nearly impossible for young people, especially young families, to put themselves into a situation that they can buy.  
 
Of course, there will always be the argument of "move back in with family" or "rent a cheaper place" but sadly most rent in town is the same, and when you have small children etc, downsizing isn't particularly an option always.  
 
For example: I'm a student & mom, hubby works full time for a decent company. I work part time when I can, however daycare costs are huge $$ and often you don't come out with much on the other side for income.  
 
Take that into consideration, one single car payment, rent @ 1300/month & hydro and there's little left to stash in a savings account for a down payment. For someone who has all of this & not so hot credit, it's literally impossible to buy a home.  
 
So I don't think it's a case of people CHOOSING to rent over owning, I think a lot of it is people can't buy.

I have quite a few friends that choose to rent because they want the independence of it, and the freedom to flow between home and travel. Some just don't want the work of owning a home as well. I realize it's difficult putting together a down payment and lawyer's fee's, I was a single mother and somehow scraped together enough. With the housing prices, it's crazy to expect anyone just starting out, or making close to minimum wage to be able to even consider the housing market. I get it

But as some of the posters mentioned above, not a practical way of living for everyone. We are a young family (with 3 kids 3 and under) and as much as I would love to have a huge yard and deck with walls to call my own and an option of a dog, it's just unaffordable right now. We don't have any family here, which means we have to pay for any and all child care (which is insanely expensive), no option of staying with family either. We do rent a tiny house, with a tiny yard, so we are not completely missing out, but our money is basically being wasted with no actual investment, such as a house would be. I saw a segment on the news that said that we are having richer seniors and poorer young adults right now...so we are kind of in a market bubble so to speak. In BC (I've lived in bc for a while) the average age to buy a house (a shabby house, nothing expensive, practically a shoe box) is in their mid to late 30's, which is pretty surprising. I understand BC economy is much different from here in Brandon Manitoba, but that gives a rough idea about the market for us young people. Although not impossible, it would take a rather long time to save up a down payment, never mind the 20% that would be best.. however, on the other side of the argument, I also just read an article on the amount of "stuff" that we collect and it stated that the average North American home have over 300,000 items... so hypothetically, if you would sell everything for 1$, you could buy a house cash. So maybe "unaffordability" is more of a point of misplaced priorities..or maybe it's this crazy housing market, or maybe (and probably more likely) a combination of the two.

Kevin O'Leary says rent don't own.. I do not remember exactly what he said but it webt something like this... With renting you know you owe this much every month no surprises.. With owning you have up keep or things that break down such as appliances... SPEND SPEND SPEND..  
 
I also stumbled across this one day..  
 
2001 house bought for $248,601  
2011 sale price: $456,147  
 
Subtract:  
• $168,434 for the amount still owing on the mortgage;  
• $4,000 for legal fees to buy and sell;  
• $22,807 in realtor fees for the sale;  
• $159,265 for 10 years of mortgage payments ($1,327 per month for 10 years);  
• $42,000 for 10 years of property taxes;  
• $19,000 for 10 years of home maintenance;  
• $2,211 for the land transfer tax when the home was bought;  
• $24,860 for the original down payment; and  
• $358 in provincial sales tax on the mortgage insurance.  
 
Actual profit: $13,212  
 
 
So is it possible that renting could be the smarter way to go?? IF you took the math equation above and say paid rent of $1300 per month but could afford the above mortgage and chose to put all that extra costs into some sort of investment would you or could you be further a head in 10 years??