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curves2000 · 02-28-2017, 03:13 AM

There are lots of things to consider when it comes to buy vs rent and old vs new so here are a few tips and bits if info I have come across the way. I am a homeowner with a rental property as a side gig.

There is no RIGHT answer for new vs old as both have pros and con's. The issue with most new/newer homes is that everything looks all fine and dandy a lot of the time from a pure aesthetics perspective but underneath you CAN have issues galore. During the Alberta labour boom of the last 15 years or so a lot of quality workmanship went out the window with builders and trades literally picking up people off the street for random work which lead to awful construction. Modern homes though are usually more energy efficient, have nice open floor plans and have been developed more for modern ways of life.

Older homes can have a lot of character, better quality construction and can many bonus features like very large back yards, large decks, huge garage's and are in more established areas with more mature surroundings which is always nice. Older homes though do have weird upkeep in terms of being drafty, odd sized kitchen cabinets that don't allow for things like larger fridges of today, lacking room for a potential a built in dishwasher. Electrical wiring that may be odd or need to have the outlets changed for 3 prong electronics etc.

If you can find an older, well maintained home than has good roofing and appears to be in good shape, don't discount it.

As for buy vs sell, I have always been on the solid "buy" side due to the equity/ appreciation and the fact that sooner or later you do eventually stop making mortgage payments but with rental payments? They go on for ever until you actually buy.

5 years isn't a SHORT period of time but like some other posters have said, if you plan on moving in a short period of time, go ahead and rent.

Now this will not be a popular opinion and I may get roasted for it but it's what I believe in, despite the fact myself and my family have been in the residential rental industry for a long time. For far too long a lot of people have always thought about their primary residence as an "Investment" and have done a lot of stupid things to justify overpaying for properties or pumping in a LOT of money into their homes for things that don't really add a lot of value. Paying $700k for 1000 sq ft condos in downtown high rises and considering them "land" or dropping huge sums of money for things like top end appliances, kitchen renos and so forth. I am not saying it's a bad thing but for every property somebody views and doesn't like something, odds are it was added, changed or built because the owners thought it was a good idea or that somebody was going to pay them for it.

Another thing to consider is I do think we are a little frothy in terms of the housing market in Canada, across the country. The values have gone so high for so long and the actual demographics of the country are changing. I have worked on the lending side in a big 5 bank and followed the trends and some of the cautions I have seen coming from the Banks, Bank of Canada, CMHC, Office of the Superintendent of Financial Institutions (OFSI) and its "interesting" to say the least.

If we take the Alberta market and drill down to Edmonton and Calgary, we have gotten used to yearly increases in real estate values without blinking an eye for many years. Affordability is a concern for a lot of people. If we take my generation (millennium=32) a lot of them across the country can't afford to buy the homes they grew up in from their parents, their parents though are looking at taking a lot of that equity, downsizing and using the proceeds for retirement. In a market place there needs to be the buyers and sellers.

I have probably blabbed on for too long with this but if anybody wants me to elaborate a little more I can. I am not looking to scare anyone but I do find that when it comes to real estate sometimes people go in a little blind thinking its the cats ass of investments when it may not be in some ways.

Anyways good luck either way and sorry about the long post!

02-28-2017, 03:13 AM	#31
curves2000 First Line Centre Join Date: Dec 2013 Location: Calgary, Canada Exp:	There are lots of things to consider when it comes to buy vs rent and old vs new so here are a few tips and bits if info I have come across the way. I am a homeowner with a rental property as a side gig. There is no RIGHT answer for new vs old as both have pros and con's. The issue with most new/newer homes is that everything looks all fine and dandy a lot of the time from a pure aesthetics perspective but underneath you CAN have issues galore. During the Alberta labour boom of the last 15 years or so a lot of quality workmanship went out the window with builders and trades literally picking up people off the street for random work which lead to awful construction. Modern homes though are usually more energy efficient, have nice open floor plans and have been developed more for modern ways of life. Older homes can have a lot of character, better quality construction and can many bonus features like very large back yards, large decks, huge garage's and are in more established areas with more mature surroundings which is always nice. Older homes though do have weird upkeep in terms of being drafty, odd sized kitchen cabinets that don't allow for things like larger fridges of today, lacking room for a potential a built in dishwasher. Electrical wiring that may be odd or need to have the outlets changed for 3 prong electronics etc. If you can find an older, well maintained home than has good roofing and appears to be in good shape, don't discount it. As for buy vs sell, I have always been on the solid "buy" side due to the equity/ appreciation and the fact that sooner or later you do eventually stop making mortgage payments but with rental payments? They go on for ever until you actually buy. 5 years isn't a SHORT period of time but like some other posters have said, if you plan on moving in a short period of time, go ahead and rent. Now this will not be a popular opinion and I may get roasted for it but it's what I believe in, despite the fact myself and my family have been in the residential rental industry for a long time. For far too long a lot of people have always thought about their primary residence as an "Investment" and have done a lot of stupid things to justify overpaying for properties or pumping in a LOT of money into their homes for things that don't really add a lot of value. Paying $700k for 1000 sq ft condos in downtown high rises and considering them "land" or dropping huge sums of money for things like top end appliances, kitchen renos and so forth. I am not saying it's a bad thing but for every property somebody views and doesn't like something, odds are it was added, changed or built because the owners thought it was a good idea or that somebody was going to pay them for it. Another thing to consider is I do think we are a little frothy in terms of the housing market in Canada, across the country. The values have gone so high for so long and the actual demographics of the country are changing. I have worked on the lending side in a big 5 bank and followed the trends and some of the cautions I have seen coming from the Banks, Bank of Canada, CMHC, Office of the Superintendent of Financial Institutions (OFSI) and its "interesting" to say the least. If we take the Alberta market and drill down to Edmonton and Calgary, we have gotten used to yearly increases in real estate values without blinking an eye for many years. Affordability is a concern for a lot of people. If we take my generation (millennium=32) a lot of them across the country can't afford to buy the homes they grew up in from their parents, their parents though are looking at taking a lot of that equity, downsizing and using the proceeds for retirement. In a market place there needs to be the buyers and sellers. I have probably blabbed on for too long with this but if anybody wants me to elaborate a little more I can. I am not looking to scare anyone but I do find that when it comes to real estate sometimes people go in a little blind thinking its the cats ass of investments when it may not be in some ways. Anyways good luck either way and sorry about the long post!