Renting vs. buying a home....So difficult coming up with a down payment!

The OP needs psychiatric help. What was posted is raw BUNK.

A recent evaluation puts the Canadian property market at 10% overvalued even at current low interest rates and 25^ overvalued at normal rates.

What OP needs to understand that rent is NOT throwing money away. By paying rent, you are allowing someone else to catch the falling piano of the massive losses in capital when Canadian property collapses.

If OP want to get the money to buy their own place, there is a way.

By buying a solid plot of land somewhere, the value of the land will track the property market. Then, wneh you want to buy an actual home, one can sell off the various plots of land for the deposit.

There si a cheap way to buy valuable land. As the gold price goes up, so the price of residentail land in the Yukon is soaring as loads of people move in to service the growing exploration and exploitation of gold in the Territory. On average, land in the Yukon has been doubling every 7 years for quite some time now. To obtain land in the Yikon is easy. The Yukon Governemnt have a land purchase scheme where ANYONE, regardless of credit (no credit check) can put down 20% plys 5% (total 25%) of the purchase price and have 5 years to complete paying with the residual debt locked at a ludicrous 5% FIXED INTEREST RATE.

The land we bought 5 years ago on this scheme for $10,250 is now worth over $50,000.

The Yukon GOvernment web site for this scheme is

[link to www.emr.gov.yk.ca]

Thank you!

Yep, if you factor in property taxes, repairs and homeowner's dues, it's much cheaper to rent.

And you don't have anything at the end of x years and you are at the mercy of a land lord.

Yes, this!!!

I am not so much worried about the cost now.

It's security and having equity that concerns me most. That's the reason I am having a hard time understanding why so many of you are promoting renting like it's a ''win-win.''

They are people who don't have anything and never will have anything. They are renters. Get a secure base first, pay it off, go on to other things.

Is this really true though, that renters will never have anything?

I mean, maybe it's smarter to keep renting and put money away into an RRSP, especially since the housing market is so volatile.

Honestly, the more I think about it, many homeowners can become upside down or underwater in no time.

In my experience it's true. Don't buy more than you can afford,if you do that it won't really matter if you are upside down. Pay it off as soon as possible. Think about buying some land and building a home yourself.

There are good reasons for both sides, it just depends on you and your situation. Rent where I am is about a thousand a month. Every year you pay 12 thousand. I know what the renter advocates say but that doesn't make sense to me. Four years later I would have paid 50 K and I'd have nothing to show for it.

The landlord can kick you out or demand more later on, either immediately or when the lease is up.

I have never looked at a house as an investment. It can be, but you have to live somewhere. I never wanted to answer to some landlord.

The key is paying the mortgage off as soon as possible. With the interest people end up paying several times what they would have paid in cash. Look at the amortization tables for a loan sometime.

Just my 0002 cents worth.

Thank you for your insight.

You are 100% correct that buying is better than renting.The only REAL property legally in the USA or Canada is land.Nothing else.Over your lifetime owning LAND has huge advantages.
Buy a house.Stop looking for a convenient location though.Look for some where out of the cities,and you will quickly notice 10 miles outside of a metro area prices drop by 60% or have 100 times as much land.

With land you can grow food(garden large or small). Learn to can food.This alone can save you thousands per year.

Good luck in your search. The only people who think it is better to rent than to buy are to young or brainwashed to understand they own NOTHING legally worth ANYTHING.

That said...I am a land lord with rental properties....keep on paying up slaves...I have more properties to buy!

Here's a listing for a two-story 1,222 square foot condo in Calgary that has 3 bedrooms, 1 full bath, 1 half bath, a large stone fireplace in the living room, with new countertops and flooring in the kitchen, a 1-car garage (with additional sq ft), a private and sunny west facing fenced back yard, that is situated in an excellent location on a nicely maintained quiet street in the area of Marlborough Park.

The monthly payment is quoted as being approximately $632.85 for a $119,200.00 5 year mortgage at 4.09%.

The mortgage amount is based on the purchaser making a 20% down payment of $20,800 against the purchase price of $149,000.

Under these terms the purchaser would own the property outright at the end of only 5 years.

The address of the condo is:

# 45 6103 MADIGAN DR NE
Calgary - Calgary
AB, T2A 6K9

[link to realestatemountainview.alberta.remax.ca]

don't buy unless you can do this

#1 20% down payment

#2 6 month cash emergency fund

#3 gonna stay put for at least 10 yrs

OPTIONAL

take 15 yr mortgage if possible


if u cant do that DON'T BUY

let me guess did they factor in expenses like Taxes, insurance, utilities, maintenance ETC ETC !

Thank you for your effort, I appreciate it! Unfortunately, Marlborough is a VERY VERY BAD, DANGEROUS AREA, full of crime!

This is very sage advice! Thank you and I believe you are right.

Not quite time for us to buy, yet!

here if you buy a new house they offer no down, notary fees and no tax, just saying

Where do they offer no down?

Move to where real estate is more affordable and where you can get work. It's called the 'rental trap' what you're stuck in, can't save cos of high rents. I've moved interstate 3 times now, just went where it was cheap for a starter home and built on that.

I considered that too but its $30 daily to park the rv in a park.Lot rent averages $200 to $300 monthly if not in a park.
We pretty much screwed either way we try to do something.

I would never buy a money pit again..

Look how much money you will save in interest and property tax and repairs and upgrades over 30 years.

You could have paid for 4 houses like the one you want..you can only live in one at a time...why buy 4...

You don't have to live in a MacMansion. My family and I live in a humble 3 bedroom cottage, thats going on 60 years old. Over the years we have been doing it up so it's now a comfortable house to live. It's a little smaller than we would like, but we're working off a ten year plan. The loan I got was a no deposit loan. However, I have been working on paying at least $12,000 off the principal per year. I think I owe about $250,000 on it now.

My husband also owns a couple of investment properties with his business partner, which are completely negative geared. We would have no problems getting a big house if we wanted to, but that would be detrimental to our future financial health.

10 year plan.

That's MORE than I pay in property taxes without the gas/maintenance.

There are FHA loans that allow as low as 1% down.

Look, if you can't save enough to put money down on a house, you shouldn't really be buying one. What are you going to do when the water heater needs to be replaced, or the roof leaks, or the heating system is old? Houses are expensive. You don't just move in and only pay the mortgage and property taxes. There are added expenses to a house that you would need to have savings for as well. At least money in an emergency fund for, well, an emergency.

Why not look into renting a house and see how you like it and go from there.

If u can pay cash, by all means buy a home. Here in the USA, there's no way I'd sign any mortgage papers. Perhaps Canada is in better shape. Still not sure I'd do it.

There is something else you need to consider.

If you are buying a home, don't buy it for "investment" as if you will make money off of it.

Especially if you go for the low-cost homes. What often happens is you find yourself in a neighborhood of equally low cost homes, and, when you try to move, the builders who built your home will undersell you to would-be-buyers. This happens to many people.

I agree with you, houses are expensive.

But for some reason, I feel like I have no security as a renter, like I don't really have a ''home.''

It just feels so temporary to rent. And why does it seem like everyone looks down on me for being a renter? It's as if they expect you to own your own home since I am mid-thirties.

I don't know, lots of societal pressure to be ''living the dream.''

Condos are a shitty investment. All the responsibilities of home ownership combined with the annoyance, rules and neighbors that come with apartment living. Even 20 years from now when the mortgage is paid off you'll still be on the hook for maintenance fees (hundreds of dollars per month) and property tax (a few thousand a year.)

Not sure about Canada but in some states here in the USA you can buy a tax lien certificate.


.....if not do not mind benefiting from other people's problems.


Here in Illinois.......if someone cannot pay the property tax.......then other people can buy the tax lien certificate.


When the people do finally pay.......you get the late fee penalties which are the equivalent of approx. 18% annual interest rate.


So........by buying the certificate.....you would be paying the State the 5,000 or so dollars due on the property tax. If the people eventually do pay this.......you get an 18% return and your original 5,000 back.

If they do not pay it by the deadline (approx. 2 years).......you get the house.


So you would get either an 18% return on your 5,000 investment......or you would get a house.