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OMG!WTF! · 10-25-2017, 10:51 AM

People don't seem to realize the financial disaster they subject themselves to in real estate and it always comes down to the falsehoods inherent with real estate. Real estate always goes up over time is likely the most costly "truism" I've ever heard.

In 2007 the average house price in Calgary touched 500k. Now it's 475k. Not a big deal but the time factor is absolutely devastating. Your 500k would be worth 900k now if invested at a below market average return of 6%. Your average 2007 house is now approaching a half million dollar hit on your potential net worth. And those numbers will just get worse over time as compound interest really kicks in.

I'm also willing to concede $500 a month to rent in the rent vs own debate. So 6k a year in rent premium for ten years. 60k in ownership savings. Certainly enough to pay the realtor when you go to sell.

Rent now. Buy later.

10-25-2017, 10:51 AM	#3220
OMG!WTF! Franchise Player Join Date: Oct 2014 Exp:	People don't seem to realize the financial disaster they subject themselves to in real estate and it always comes down to the falsehoods inherent with real estate. Real estate always goes up over time is likely the most costly "truism" I've ever heard. In 2007 the average house price in Calgary touched 500k. Now it's 475k. Not a big deal but the time factor is absolutely devastating. Your 500k would be worth 900k now if invested at a below market average return of 6%. Your average 2007 house is now approaching a half million dollar hit on your potential net worth. And those numbers will just get worse over time as compound interest really kicks in. I'm also willing to concede $500 a month to rent in the rent vs own debate. So 6k a year in rent premium for ten years. 60k in ownership savings. Certainly enough to pay the realtor when you go to sell. Rent now. Buy later. Last edited by OMG!WTF!; 10-25-2017 at 11:00 AM.