Quote:
Originally Posted by RichieRich
My little spreadsheet... simplistic but enough to give ya'll an idea on quantifying your respective "investment" perspectives. I chose a 15yr time period for a $600k house versus $2k/mo rental, and in order for the rent versus buy to be equal, the home equity must increase by almost 60% whilst investments stay at 7% (or lower) consistently.
dagnabbit... I had copied/pasted but I guess it doesn't work too well...
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I can't see your sheet to verify the assumptions/math, but 60% over 15 years is less than a 3.2% compound growth rate. I think its pretty likely Calgary single family homes do better than that over the next 15 years from their current starting point.
I also think the stock market might do less than 7% over the next quarter years. The current market levels are pretty high, especially in the US. Thats generally the best predictor of future returns.
Edited to add: I think your pricing assumptions are a bit off as well. My house (location discussed above) wouldn't be worth $600k I don't think, probably ~10% less than that. But based on a rentfaster search the only things close to comparable (but not as nice) rent for ~10% more than that. Even small differences (which will obviously vary based on location/personal circumstances) will make a big difference to your results.