Renting vs Owning - Page 2

scotchnrocks · #11 10-29-2007, 12:40 PM

There is more to buying a home than just the finances of it. The quality of living is usually several times better than renting. No more paper thin walls and floors, decorating/modifying as you see fit to create the space what you want, etc. If you are a lazy person with no wife and kids, then the upkeep may be a bit much, it depends on whether you're looking at a house or condo.

maxtower · #12 10-29-2007, 12:40 PM

Henry,

$259k is quite a lot of money. What is the difference that your calculation is showing?

Henry17 · #13 10-29-2007, 12:42 PM

I am fairly lazy but based on my calculations I'd only need to generate a 2-3% return to make renting preferable. A bank account would give me that.

The problem is with appreciation. I don't expect there to be any. In the last 3-4 years there have been 3 projects that match what I'm looking for and all of them still have never lived in units. That implies to me that appreciation will be next to nil. Real estate though is not my strong point so maybe that is normal but I doubt it. To me it implies a lack of demand.

Henry17 · #14 10-29-2007, 12:45 PM

[ QUOTE ]
There is more to buying a home than just the finances of it. The quality of living is usually several times better than renting. No more paper thin walls and floors, decorating/modifying as you see fit to create the space what you want, etc. If you are a lazy person with no wife and kids, then the upkeep may be a bit much, it depends on whether you're looking at a house or condo.

[/ QUOTE ]

It is actually the same place. There are units for rent and for sale. Owning would give me the option to customize but like I said the place is brand new and nice so it would be minimal stuff that I'd improve.

Henry17 · #15 10-29-2007, 12:47 PM

[ QUOTE ]
Henry,

$259k is quite a lot of money. What is the difference that your calculation is showing?

[/ QUOTE ]

Assuming a very conservative return on tied up capital (5%) I'd lose ~$25k a year owning.

stephenNUTS · #16 10-29-2007, 01:23 PM

[ QUOTE ]
[ QUOTE ]
Henry,

$259k is quite a lot of money. What is the difference that your calculation is showing?

[/ QUOTE ]

Assuming a very conservative return on tied up capital (5%) I'd lose ~$25k a year owning.

[/ QUOTE ]

I have ONE question Henry17:

You seem to be a very astute investor/financially educated poster on this forum...how/why did you choose to rent vs. owning a home the last eight years ,in the BIGGEST real estate bull market in history?

I am very curious,and in no way trying to question your decision,but spending $250k+ in rent,and now deciding to make another decison whether to spend ANOTHER $250k is perplexing?

I truly would like to hear your perspective over this time frame?

Thanks,
~stephen [img]/images/graemlins/confused.gif[/img]

Henry17 · #17 10-29-2007, 01:49 PM

[ QUOTE ]
You seem to be a very astute investor/financially educated poster on this forum...how/why did you choose to rent vs. owning a home the last eight years ,in the BIGGEST real estate bull market in history?

[/ QUOTE ]

Originally I wasn't sure how long I was going to stay so renting was the correct choice.

But even if I knew I was going to stay for 8 years I still would have rented. The area is a major tech hub so when I got here real estate was over priced. When tech crashed I started to look into buying. There was nothing that matched what I was looking for. 2004 they finally built a building that matches my criteria (mostly). The units though have not appreciated at all despite the biggest real estate bull market in history.

[ QUOTE ]
I am very curious,and in no way trying to question your decision,but spending $250k+ in rent,and now deciding to make another decison whether to spend ANOTHER $250k is perplexing?

[/ QUOTE ]

I don't see much upside to $800-1.2M condos in my city. Of the 3 projects that have units in that price range all of them have units that have never been lived in despite being on the market for 3-4 years. With a 4th upmarket building in the works I can't see enough demand for this particular type of real estate in this specific location. I figure if it meets inflation that would be the best I could expect.

'Chair · #18 10-29-2007, 01:57 PM

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Henry,

$259k is quite a lot of money. What is the difference that your calculation is showing?

[/ QUOTE ]

Assuming a very conservative return on tied up capital (5%) I'd lose ~$25k a year owning.

[/ QUOTE ]

I have ONE question Henry17:

You seem to be a very astute investor/financially educated poster on this forum...how/why did you choose to rent vs. owning a home the last eight years ,in the BIGGEST real estate bull market in history?

I am very curious,and in no way trying to question your decision,but spending $250k+ in rent,and now deciding to make another decison whether to spend ANOTHER $250k is perplexing?

I truly would like to hear your perspective over this time frame?

Thanks,
~stephen [img]/images/graemlins/confused.gif[/img]

[/ QUOTE ]

agreed. what's your location?

google: dinkytown rent vs. buy calc
and be honest with yourself when estimating the input variables.

maxtower · #19 10-29-2007, 02:13 PM

It sounds like he already "knows" his answer.

The only thing I could suggest is finding a different city or place to live thats close but cheaper. $2500/mon is a lot to pay just for rent.

Henry17 · #20 10-29-2007, 02:21 PM

[ QUOTE ]
agreed. what's your location?

[/ QUOTE ]

Ottawa. The only building I'm willing to live in is 700 Sussex.

[ QUOTE ]
It sounds like he already "knows" his answer.

[/ QUOTE ]

I really doubted that I had missed anything but I was hoping I had. I really would prefer to own. Tried the Dinkytown calculator and it also suggests I continue to rent.