Rent or buy

Buying in Canada is a meme at this point. Relocate to Seattle and buy there - higher salaries for software AND lower prices AND higher standard of living.

Doesn't the landlord have to pay for most of your repairs and shit though

So you can damage the walls in your own house without paying to fix them? Intredasting...

Whether you should rent or own depends entirely on your situation and your local housing market.

In my market, for example, a comfortable house would sell for 60-80k and rent for 900 a month. A mortgage on 60k is roughly 500 a month, including taxes and insurance. It would be foolish to rent a house if I were staying here for more than 3 years.

Did you mean 50% and 100%? I don't understand this metric.

This, senpai. We Canadians are fucked in the ass six ways to Sunday when it comes to housing. Buy in Seattle and wait for the mass Boomer die-off to help cool down the Canadian housing market.

That would be the monthly rent as a percentage of the purchase price.

Rent/market price

When the boomers start dying the gubmint will just open the flood gates to the Chinese oven middle class. There is no hope.

How is gun crime in Seattle? It's non-existent here.

Oh okay. Thanks.

Australia and Canada for the foreseeable future are both places to RENT.

Why would anyone buy at the top of a cycle?

I don't think it's a cycle. I think we have just reached a new normal. My parents bought there house with a price of 2 or 3 times their income. Now houses are like 20 or 30 times middle income.

WHERE THE FUCK DO YOU LIVE?

Thats a 13.5% yield!

*their house

Fuck.

In a military town in the US. I just started buying houses over the last few years. I've got 6 so far. All yield at least 20%. Most I bought for 40-60k (including repairs) and they rent out for 850-1100.

Everything is a cycle.

If China's economy went into recession your housing market will reset.
Nothing is ever permanent although it may seem that way.

Find another vehicle to put your money into and use the net profits to be your rental at least then you're living for free essentially.

Both Canada and Australia are major bubble territory because the Chinks and boomers are using the domestic residential market as savings accounts.

Don't purchase in such a market, don;t support or entertain it. Look for other avenues of investment.
Such markets should be rental only, so you arent left holding the bag on a 30 year contract at something like 2% return.

Smart. They'll also most likely have some growth in the current political climate.

Good work.

Dude, they're not making any more land, and Canada's economy is heavily urbanized now. It's a permanent change.

You are never going to be able to buy a house in a big city for $C150,000 ever again. Housing in Europe has always been this expensive. We are just filled out like them now.

Yeah, I make a killing off of foreclosures. Retards get a VA loan for a house, then get orders and can't make both payments for very long. Nobody buys foreclosures around here either, so I can get houses for half their value if I pay cash.

Wikipedia says less than 7% in 2010. en.wikipedia.org/wiki/Demographics_of_Seattle

I hear what you're saying, but if you can invest your money and get a 13% return, minus costs and management

or buy in Canada for a hugely inflated figure and get 2% ROI

which would you do?

Keep in mind you can leave your money in the bank and get 3% for nothing and even that is dismal.

see
This is how its done.
Property investment isn't glamourous or sexy, wolf of wall st hype. Its just boring old bricks and mortar in boring old places near boring old jobs.
If you want a house do what this clever user is doing.

Expenses a landlord incurs that a renter does not:
> property taxes
> Insurance
> Maintenance
> HOA fees
> Lawn care

Dude, this is just homosexual handwaving to get away from the fact that there is no spare land in Canada. Also, I don't have enough money to be flipping houses yet. I just need a place to crash and fuck roasties.

These change from place to place.

Where I'm at Lawn care, some insurances, HOA fees, some maintence, even some property taxes can be put back onto the tenant and Commercial Leases are even better.

>Homosexual handwaving

I'm sorry I don't 'invest' in Crypto

I'm doing some webdev for Eth these days. Just an informal side job. It's great for international biz. I'm not "investing" in it.

All these costs are factored into your rental rate. You should do these calculations before you buy a rental property or your own home. I require all my tenants to maintain their own lawns and I've got an honest handyman who only charges $40 an hour for 24/7 calls.

S E A T T L E
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>handyman

Dude, handyperson. It's the current year for Gaia's sake.

I'm glad Seattle and Toronto serve as containment cities for you cunts.

WHOOOOOOOSH

I know you were just being ironic, that is what makes it all the worse. You cunts are insufferable.

>You cunts are insufferable.

Dude, pay your respects to your natural superior.

...

If you make a lot of money: Buy
If you don't: Rent

If you rent and shit happens then you can just quickly cutoff ties and move back in with your parents or go to another rented house where the rent is cheaper. Only reason to buy is if you're starting a family and need space or you make so much money that you want to invest that money into multiple houses.

Also a CS major.

I rented in Victoria and now I live with my parents in Vancouver.

Feels good saving every penny for when the crash comes.

How do you get laid?

> Implying

Where do you think you are?

I like you. Wanna hang out next time i'm in Victoria?

No. You're probably a creep and/or Antifa.

it's barely worth it overall btw it's 0.83% rent/buy ratio if you calculate it for 30 years maintenance costs and all you will easily bleed money out the ass on a deal like that. especially if you consider alternative costs compared to a real investment like an index fund.

you will lose about 180-380% (of buy price) in a 30 year period compared to renting and investing with a 30 year mortgage. of course there are no guarantees the market will perform in the next 30 years like it did before. so there is that.

I'm clearing 20% on my money, without being leveraged at all. If I get a portfolio loan then I could take out 70% of my equity and get 30-40% cash on cash return on these. Either you misread my numbers, or you don't understand what's going on.

Stocks are a fools investment, unless you're the one selling the stocks. You're lucky to get 8% in a good year, you can't leverage your money without absurd interest rates, there's much more risk, etc. There's a reason real estate has made more billionaires and millionaires than any other industry.

>I'm clearing 20% on my money
at least you think you are, but you will learn eventually about the costs of ownership.
rule of thumb is 5% annual of asking price per year. could be less or more depending on the location and type of real estate. adds up to 150% in 30 years. plus the mortgage which is around 220% give or take. 370% without the payment into equity.
meanwhile renting is 298% for 30 years and the down payment is instead put into an index fund which will yield about 500% in 30 years.

nobody should hold more than 30% of his wealth in real estate. 10% tops is ideal.

>rule of thumb is 5% annual of asking price

Where did you hear that? The rule of thumb everyone uses is 1% of market price per month.

Diversification is a hedge against stupidity. There's no reason to diversify outside of real estate. You can invest your funds you set aside for future purchases, but it's absurd to limit yourself to 30% of your net worth.

Stocks are a fool's game, for the reasons I outlined above. The only people who get rich trading stocks are the brokers.

that's an other rule of thumb you think of. the 5% annual is the cost of ownership. and that is the bad thing about buying on leverage, it multiples your return on investment but so does the cost because the cost is 5% of the full price.

the 1% rule is about buying instead of renting.

Please stop, you're just embarrassing yourself.

I'm up to my elbows in this everyday. I'd be happy to compare my real estate returns with any stock broker's performance, or even these meme coins. And, at the end of the day, I have a real asset instead of a share of a company that could go broke.

here is the thing i'm sure you seen calculations where they figure your return on investment about 16% annual on 20% down.

when you consider tho that 20% investment is only 1:5th of the total value and the costs are measured on the total value your 5% annual cost becomes 25% on your investment.

and that is very bad. very fucking bad. but of course it will only become apparent much later on when you have to replace the roof for example.

can't help you m8 if you can't do math.

Should you ever take out a 15 year mortgage instead of a 30 year if you can afford it?

You're rule of thumb is just that, a rule of thumb. A new roof costs me 3k including labor. I used to set aside some money for capital improvements, but I'm cash flowing enough that it's not a problem anymore. Whenever I buy a place, I go through and replace the floors, service the AC unit, replace or re-shingle the roof, etc. It's all calculated into my adjusted basis already.

In my current project, I bought it for 27k and I've put 10k into it in repairs. Once I'm done with everything, I'll have maybe 40k in it. When it goes up for rent, I'll rent it out for 850 easy. I've already had 3 people stop by and ask about it while we were working on it.

Calculating in the accelerated depreciation, I'll probably clear 21% after taxes.

The general consensus is that it depends on the person. If you're the kind of person who knows they will make the double payments, then go for the 30 year. It'll give you a lot more flexibility if something happens.

If you're the kind of person who will slack off and start skipping double payments, then go with the 15 year.

imo, choosing a good neighborhood that will help your house hold its value is a more important concern.

Lurking on the conversation here.
This all depends on how your states tax code works.
In Australia owning a home only makes sense after you own about 5 metro homes.
The reason being the rental income + cap growth offsets the maintence capital costs. You need a gross return of apx 6 figures per annum for it to be feasible long term taking all things into account.

You have to make it to take it.

Holy shit

Where do you live?

How small is your house?

It's $65 a square for singles let alone the valleys and tin and labour

Last year my roof cost $17,000 and this kitchen was $18,000 and I did all the labour for the landscaping and that still cost me $4,000

I've got a contractor who works cheap. He does all the labor for 1200, including the dumpster rental. There's nothing fancy about these places, just a standard hip roof.

I don't know how you got charged 17k for a roof. I even use architectural shingles and I come in just over 3k.

Dude im the same... im stuck living in one of my parents apartments in vancouver fucking roasties and going to uni. my life is pretty simple for now, just going to my accounting coop and studying and shit

but my parents are selling their houses soon and will go on a vacation until they die so i need to find a place to live

i hate canada and would not like to live in bumfuck ontario to afford a house, i was thinking seattle or somewhere in texas where their are no chinks

real talk dont move to vancouver, u will have it there with the price of everything and shit pay as CS jobs want to pay u pajeet tier money.

if i got a canadian CPA in the next few years do euro countries respect that? or americans? or do i just get my CPA at a american big 4. i dunno i just hate vancouver and all its chinks, indians, and fillips

you dont have to bother with getting them fixed. just keep them damaged forever. until the house falls down.

unlike renting where you have to pay for the damage when you move out or when they find out you fucking up shit.

>know your market
>buy preferably in a "recession" or "downturn"
>look for value
>buy wholesale (ie. courthouse steps)

>A new roof costs me 3k including labor.
wtf do you live in a dogshed?

Nah, it's a rental property I own. 1400sqft double wide. I'm heading out there in a few minutes. I can get pictures if you want.

$850/$40k now that is some good investment. assuming you are not talking bullshit and you can actually pull that.

unfortunately that's almost unbelievable. usual ratio is around 0.5%, here where is live it's actually less. my current monthly rent is 0.39%. i would be a fool to buy under these conditions.

i'm actually interested in the pic if you can spare the effort.

Nah, houses are cheap here. This house is finished on the inside, new stainless steel appliances, hardwood floors, etc.

I could rent it for 800, easily. The base gives a housing allowance of at least $1000 to every marine, so rental rates are sky high here.

They get 0% down, VA loans through the military to buy houses, so the marines that do buy houses are only looking at the 150-250k houses.

jesus fuck, you couldn't buy a 1 room flat of 90 sqft for that money here.

>The base gives a housing allowance of at least $1000 to every marine, so rental rates are sky high here.
i can see that, 2% is literally insane. very special circumstances indeed. under those i would do the same as you i guess. but here it's the opposite. rents are all under 0.5%. no cheap prefabs. and housing prices are in a bubble because of gov handouts.

Here another one.

I'd definitely wait for the bubble to pop. Buying in that kind of market is how idiots got burned in 2008. They'd buy rental properties that were breaking even and then pray for appreciation.