Quote:
Originally Posted by hmmhmmcamo
For the money we spend on rent, we get a roof over our heads, in the exact location that we want to live in. We get this while not having to worry at all about any maintenance issues/costs, strata issues (ie unexpected assessments), but most importantly, it won't bother me in the slightest when prices start coming down (and in Victoria they are).
It's pretty naive to just dismiss renting as throwing money away.
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Yeah, that's a common misconception that renting is throwing money away. The same argument could be made about mortgage interest, condo fees, property taxes, etc. You don't get that money back.
You need somewhere to live, so it makes sense to decide which option has the lowest total cost to yourself. It could be either, it's a matter of math and what assumptions for future rental rates, interest rates, real estate appreciation rates, and rates of return on alternative investments.