Quote:
Originally Posted by Bend it like Bourgeois
Doesn't that prove my point?
Should add too - it doesn't appear to adjust for rent increase either. They aren't going to stay level for 30 years.
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I noticed that too. Essentially renders the calculator useless.
According to TD Economics in 2006, the previous 25 years would have seen an average Canadian home appreciating tax-free at 5.6%. In the next 25 years, they were looking at a 4% tax free increase.
Obviously certain areas will be different than others.
However, in 25-30 years, our friend will no doubt be one of those creaking seniors being booted out of a downtown apartment building and forced to rent in Oyen, complaining all the way how he's been wronged.
I looked at a yahoo calculator for a $304,000 condo, $30,000 down, etc, etc but which allowed for rent inflation at the same rate as real estate inflation, 4%, and came out roughly $1 million ahead on home ownership over 25 years.
Don't be an idiot. Buying a home, a place for yourself, is probably the key bedrock in your financial life. And once you pay that sucker off, really, in a lot of ways, you're set. And nobody can kick you out of there as long as you pay your taxes.
Cowperson