Quote:
Originally Posted by MelBridgeman
Funnay...i assume you are renting? Which means you are pissing your money away...while those people with the 2000/mo mortgage are investing their money...
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No, people who get a 25 year (or worse, 35 year) mortgage paying off 90% of a $350,000 - $450,000 house are the ones "pissing away" their money. For the bulk of that period, they are paying well over my $1200 a month total in interest payments every month, which makes the bank happy but is hardly fiscal prudence. If you are paying less on the principal than you can save by renting, you are NOT investing your money wisely.
You are better off renting and saving a considerable chunk of money towards a big downpayment when you do buy, as long as that is an option. First off, if you have a long-term view, and a big chunk of saved-up money, you can look for deals on houses and be in position of strength when bargaining. Second, you earn money on your savings instead of pay money on your principal.
Like I said, renting is still a good deal in Calgary considering the price of houses. That's why the prices are as high as they are - landlords can do the math, too, and higher priced houses means they can get higher rents because the alternative (ie -buying) is still more expensive.