Quote:
Originally Posted by jammies
And I never met anyone who decided to go live on the street after selling their house so they could spend that capital gain on something other than another (usually even more expensive) house.
Don't get me wrong, I'm not saying buying is never an option until you have enough cash to purchase your home outright. However, if you can save up to a 25-30% down payment by renting for a few years (IF you have the fiscal discipline), you will save more money than you lose out on by renting. If you end up renting for the next 25 years, well, yah, you're going to lose out in the end.
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Eh, it's kinda a crapshoot.
Try to explain that theory to the poeple who were deabting renting vs. ownership in 2005. Those who continued renting are in comparison a whole lot worse off. Those who aren't built up some amazing capital in their current homes.
As well if you get a roommate you can substantially reduce your debt.
That said, you are right - there are times when renting can be better. To bad no one has a time machine to go check in advance what's going to have been the better option 20 years down the road.
You do what you think is best without trying to break the bank and have a miserable time making the bills.
I'm on the cusp, took out a long mortgage, but went to bi-weekly payments which substantially reduced the amortization period. Right now someone else lives there for the short time being renting it. When I move in I'll need a roommate. But I wanted a house in calgary. I want somewhere close to where I work, close to friends and family, close the the area of the city I love - and the security that my payments aren't going to change, I'm not going to be booted, and if I want to leave the city for awhile it'll be there when I return. How do those variable fit into the value of what I'm paying in interest vs. rent?