Rent vs. Buy - Lifestyle, Math, and How to choose
Buying vs. Renting is an age-old debate. Our parents think it's a simple decision: Buy! Don't waste your money! It's a good investment! But that was 50 years ago when you could buy a house for a reasonable amount of money and pay it off.\xa0
Here's a link to our blog: https://www.ratehub.ca/blog/rent-vs-buy-canada/
House prices are surging, home affordability is extremely challenging.\xa0
We need to look at lifestyle factors
- Commute
- Access to culture and amenities
- Mobility & stability
- Family and friends
- Maintenance
- Costs
We also have to look at financial factors\xa0
- Renting is (generally) cheaper
- You can build equity in your home
- Retirement planning
Then, let's look at the math
Rent vs. buy calculator - https://lautorite.qc.ca/en/general-public/calculators-and-tools/calculators/buy-or-rent-a-residence/
But also, the 5% rule (we explain it in the show and on the blog)
You're not wasting money if you rent. Having a roof over your head is a necessity.\xa0
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