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Tagrent vs buy

Is it cheaper to rent or buy?

So many pessimistic reporters here have been telling Canadians it’s better to rent than own. Well, those people have been really quiet over the past few years given that rents have really taken off and housing prices have skyrocketed, leaving those that had purchased in a great equity position.Those that listened to the media “experts” have nothing to show except for record high rents and landlords that want to evict them because market rents have gone up by about 30% over the past 5 yrs.  

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The State of Homebuying in Canada 2019 CMHC Mortgage Consumer Survey

Significant decrease in first time home buyers in 2019

Canada Mortgage and Housing Corporation released The State of Homebuying in Canada report on November 15, 2019, with a few key findings, including this headline. 

The annual State of Homebuying in Canada report noted that 56% of all purchasers were first time buyers in 2018. This dropped to 47% in 2019.

The tightening of mortgage rules which has been taking place over the last 4 years is certainly having an effect. The never ending rule changes were intended to slow home sales and prices. But like most government interventions, its had the opposite effect.

Continue reading “Significant decrease in first time home buyers in 2019”

Why are We Being Poorly Advised Against Homeownership?

Blog Image, Wrongly Advised Against Homeownership, March 2019

Something strange has been going on over the past decade. We’re often being told – and, in many cases, convinced – that it’s better to rent than to own.

I firmly believe everyone should own their home. In fact, I think we should own at least one investment property… and, in many cases, more than one, but I’ll get to that in a minute…

I can understand why many people, particularly Millennials, are believing it’s better to rent than own. After all, it’s easier to rent. Just look online for a condo or house for rent. Apply, sign the lease and you’re done. We’ll call this the Convenience factor.

Continue reading “Why are We Being Poorly Advised Against Homeownership?”

The End of Rent Control? Bring it on!

Rent Control Blog Image, Nov 2018

Ontario’s controversial rent control is about to come to an end – and that’s a positive change!

When I was attending a speaking session with one of my favourite economists – Benjamin Tal – a few weeks back, he had a great quote: “There’s a Swedish economist who said, ‘Rent control is the best way to destroy a city, maybe besides bombing it.’”

Isn’t that the truth?!

In the GTA, rental units are scarce. And, says Tal, rent control would only further diminish the already depleted supply of available units. 

Continue reading “The End of Rent Control? Bring it on!”

Buy now or wait for house prices to fall? The results may surprise you…

Housing-affordability

Should I buy now with interest rates still hovering at record lows, or wait for prices to fall?   When will house prices fall? … and by how much?    What will the interest rate be in the future when house prices fall?

These are the questions most Canadians asking themselves these days.   It’s no secret that Real Estate values are at an all time high in most parts of the country.   The calls for a housing correction, crash, or bubble have been going on for almost 10 years now but it hasn’t materialized.

I won’t get into the discussion here about whether house values will drop or crash or when that could happen.. because I don’t think it should be part of the buying decision.   That’s not a typo.  Market timing is a dangerous thing.  Stock advisors will tell you this.  Buy now, if you are able to commit to the plan.  Read on to see why I believe this to be true. Continue reading “Buy now or wait for house prices to fall? The results may surprise you…”