Quote:
Originally Posted by MarchHare
A good friend of mine recently moved to Calgary. He wanted some time in the city before choosing a neighbourhood in which to buy a home, so he and his wife are currently renting an upscale apartment in Mission. His unit is of similar quality to the Beltline condo that my wife and I own.
This prompted us to have a conversation about the economics of renting versus buying. He pays about $1500/month for rent; we pay about $2300/month for mortgage, condo fees, and property tax. If he took the delta of $800/month and invested it in an RRSP or TFSA, who comes out ahead in 20 years?
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Would depend on the rate of return he achives on his investments and the rate of condo appreciation minus maintainence/improvement and selling costs. Personally from a financial perspective I'd rather have a well diversified liquid portfolio than a whole whack of home equity that's tied to the value of one asset.