The Pros and Cons of Buying a House versus Renting

Lately, there's been a lot of debate whether there's a housing crisis in Canada as well as a housing crisis in Ottawa. But, maybe buying a house is not the right thing to do at this time.

Let's look at some of the reasons why your should not buy real estate now!

Time Stamps

00:00 - 0:23 Introduction why not buy real estate in Otawa or Canada

00:23 - 1:01 Inital Investment and Upfront Costs

01:01 - 1:28 Annual Expenses

01:28 - 2:03 Overall Costs in Year One

02:03 - 3:08 Rent insted of buying a house

03:08 - 3:24 Pros and Cons, buy versus renting

03:24 - 4:09 Be logical and not influenced by others to buy a house

Here are some costs as well as some pros and cons

Buying a House

Year one costs = Purchase - $153,699 (down payment)

Holding costs - 45,100 Total - $198,799*

• Does not include renovations, re-modelling, landscaping, new appliances, drapery, furniture, carpets, etc.

Renting a home pros

Rent as Alternative to Purchase Invest total “year one” costs of $200,000 at 6% = $12,000.

At end of year one you have $212,000 more in your pocket.

Cons of renting

• Won’t gain annual appreciation of a property.

• Won’t have the psychological comfort of “your own home”.

• Will have to pay rent of $2,400 x 12 = $28,800 annually. Be Logical not Influenced

• Home ownership is expensive and not appropriate for everyone.

• Don’t let societal norms, real estate agents, mortgage brokers, friends or family talk you into making a massive financial commitment that you’re not ready for.

• Financial stress is reported to be the #1 factor in marital breakdowns and divorce. • You could be happier with more money in your financial portfolio, more personal time, a more carefree lifestyle and less stress living in a rental property.

Notable information in this movie.

Mortgage Interest in year one of holding a mortgage, with 20% down is $29,500. That is before you pay one dollar towards your principal mortgage amount! First year holding costs are $195,000 minimum. Financial stress is the main driver of marital breakups and divorce.