Quote:
Originally Posted by stacey
If it is never cheaper to rent than own why would anyone buy?
|
Ownership pays off later on when your house is paid for. That's huge.
Why do people rent? No money for downpayment, unstable jobs, unable to afford the area of choice etc. Rent in a nice neighbourhood or own in the projects? Tons of reasons.
In the past few years the banks with the help of our government enabled people that would normally not be able to buy. That's what fueled this bubble.
Normally 100 x rent payment defines house value. That's how it's always been.
That's why buying a revenue property has always been a good investment. You always had positive cash flow.
What's the ratio in the case in that article? 400k house that rents for $1700. 235?
Here's some stats on this.
http://canadabubble.com/bubble-watch...ome-ratio.html