Quote:
Originally Posted by Robbob
I have been an owner for about 20. Lucky enough to get in before the boom and have a decent amount of equity in my home. My wife and I are starting to warm to the idea of moving closer to downtown and rent and take our equity and invest it. We figure that return in 10 years would be better than the property value increase for a condo (unless there is another boom).
I figure any saving on rent could also be rolled into savings/investing.
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Everyone's situation is different, from the amount of equity in their homes, to what requirements they have for their next home (move up, down, sideways), to the risk tolerance and investment prowess and market conditions. And all of this can change from year to year.
My MIL is in a somewhat similar boat - She's recently retired from O&G, widowed and an empty nester in a large, suburban fully paid off house (purchased 20 years ago) and she would like to downsize. She's familiar enough with the O&G sector and the current situation and is now reconsidering her original intent to purchase a condo or town home. I'm telling her the same thing - rent for now & see what happens. If (when? Please be when!) the economy turns around and the market picks up, she's liquid and ready to make a purchase. In the meantime, she's got extra cash to invest and further cushion her retirement, rather than dump it into an under-performing asset (Calgary real estate).