• You are here: Home Owner
  • Buyer

House: Time to rent or buy?

By David Pye, Clearfacts, May 30, 2011

Share

A decade of rising prices and falling interest rates has led many Canadians down the road to home ownership, but that was then…and this is now.

A recent Financial Post report looks at the question of how people will fare when the housing bubble inevitably ebbs, resulting in stabilized or reduced prices and modestly rising interest rates.

For some, there may already be storm clouds on the horizon, as gains in Canadian housing prices have deteriorated for eighth consecutive months.

With Canadians often prepared to make great sacrifices to become home owners, the result may be a rising tide of “house-poor” people, defined as whose budgets greatly exceed the recommended housing ratio of one-third of household income.

Experts suggest that those who can access the required down payment for a home might still want to think twice about ownership, including:

  • Those who could buy a property, but might build up their savings substantially by renting instead;
  • Those who have owned a home for some time, and who might be in a position to sell, rent and lock-in their tax-free gains.

For those still unsure of which side they fall on the great rent vs. buy debate, just remember that fulfillment of the home ownership dream includes:

  • A substantial down payment;
  • A mortgage payment;
  • A property tax bill;
  • Other expenses for renovations and the ‘unexpected’.
Read this article at :
http://www.clearfacts.ca/home_owner/buyer/house_time_to_rent_or_buy

Special report other articles

> Credit scores matter when it comes to mortgage payments
By David Pye, 08 May 2012
> Buying your first home: Should you use RRSPs or TFSAs?
By David Pye, 27 February 2012
> 10 tips to guide you through the home buyer process
By David Pye, 10 January 2012
> Home ownership: debunking 7 common myths
By Protégez-Vous, 09 January 2012
> Why paying down your mortgage quickly might not make sense
By David Pye, 09 August 2011
> Condominiums: The importance of a healthy contingency fund
By Protégez-Vous, 14 July 2011
> Buying a house: Luxury purchase or strategic investment?
By David Pye, 16 May 2011
> House: Time to rent rather than buy
By David Pye, 03 May 2011
> Home inspection : Top 5 most overlooked issues
By David Pye, 26 April 2011
> MLS listings still a no-fly zone for Quebecers
By David Pye, 08 March 2011
> Poll: For Montrealers, city life just feels like home
By David Pye, 28 February 2011
 
See terms of use

Submit a comment

All comments are moderated before they are published.

 

Terms of use

Close
  • 1.

    The comment section of clearfacts.ca, administered by The National Bank of Canada, encourages the discussion of subjects featured on the site through contributions published by its users.

  • 2.

    All comments, opinions and material submitted will only be posted when the site moderator has approved the content.

  • 3.

    Comments, opinions and material posted on this site do not constitute approval or endorsement by The National Bank of Canada.

  • 4.

    Users are, at all times, solely responsible for the content of their comments, opinions and material.

  • 5.

    The National Bank of Canada reserves the right to deny, delete or modify all comments, opinions and material submitted, at their discretion, particularly if:

    • It reveals personal and confidential information associated with an individual, including addresses and phone numbers;
    • It is unrelated to the editorial slant of the site;
    • It is off–topic;
    • It is abusive, defamatory, obscene or offensive;
    • It is threatening or harassing;
    • It contains personal threats;
    • It is discriminatory, racist, sexist or homophobic;
    • It incites violence or hatred;
    • It provokes;
    • It is false or misleading;
    • It runs contrary to the laws and rules in effect;
    • It is advertising or commercial in nature;
    • It quotes editorial without citing a source;
    • It contains content that is subject to royalties without the necessary authorizations

    The National Bank of Canada will not be held responsible for comments, opinions or material posted that violate the rules stated in the Moderation policy.

  • 6.

    The National Bank of Canada encourages users to show respect, restraint, courtesy and tolerance with their comments, opinions or material.

  • 7.

    All comments, opinions and material submitted become the property of The National Bank of Canada, without compensation of any kind.

  • 8.

    The National Bank of Canada is not required to delete any comments, opinions or material after a request has been made. All comments, opinions or material submitted will be archived and stored.

  • 9.

    The National Bank of Canada is not responsible for any external links suggested in the comments.

  • 10.

    The National Bank of Canada reserves the right to delete any of the comments on clearfacts.ca without notice.

  • 11.

    The National Bank of Canada reserves the right to modify the comment moderation policy at its discretion and without notice.

  • 12.

    To reach the site moderator, click here.

Close

0 COMMENT