Rent vs. Buy - Lifestyle, Math, and How to choose

Real Money Talk - A fresh take on personal finance

English - August 13, 2021 10:00 - 10 minutes - 14.5 MB
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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.

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.

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

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.