Reply With QuoteI'm renting at the moment as I'm in the process of selling my house. I'm paying 3,200 per month which is average rent for a nice house in a decent suburb. I know people who are paying 5,000 per month.
Even within Edmonton, rent doesn't seem to have any governing. I've noticed that downtown core is ridiculously inflated. The average highrise apartments are going for $1200 to $1600 for a 1 bedroom, yet on the south and north sides of the city, they can go as low as $800.
The mortgage vs rent argument is simply that. People have various lifestyles, and sometimes home ownership doesn't work for everyone. I've known home owners that have sold and gone back to renting, just to be free of the hassle of maintaining a home/property. Buying a house probably wouldn't work for us at this moment, and living with another couple or getting a tenant means a huge adjustment in our living habits. Finding the right people to live with would be nothing short of a miracle.
I have heard that well to do Canadians are scooping up properties in Arizona like ice cream.
Last edited by Sky Breaker; December 11, 2012 at 02:24am.
I'm renting at the moment as I'm in the process of selling my house. I'm paying 3,200 per month which is average rent for a nice house in a decent suburb. I know people who are paying 5,000 per month.
Well, it’s the best time to buy a house if you are looking to do so. It is a terrible time to own a house if you are looking to sell it. I gotta say, I’m not too keen on home ownership given that we’ve been trying to sell for over 2 years.Originally Posted by Heeeere's Olesker!
That said, with mortgage interest rates at historic lows and most real estate finally at realistic levels, there's never been a better time for home ownership. Just make sure you can afford it. (And no, neither I nor Kim are real estate agents.)
Ouch. I can’t remember the square footage, but my house is 2 stories with 4 bedrooms, 2 baths, kitchen with a decent size dining area, a separate dining room, and a den both upstairs and downstairs. And that only cost me about $140,000.
Unless they pay you more than double what we get paid here in the Midwest, I think just living where you do the cards are stacked against you.
"There's only one Master of the Universe and it's He-Man." - Stephen Colbert
"The heart has its reasons of which reason knows nothing." - Blaise Pascal
$565 for an ~800 sq ft 1 bed 1 bath. i have a couple minor issues with the unit, but otherwise i'm fairly happy with it. 2 years ago i had a place that was about $50 more, at a comparable size. i really want a house, but i can't justify it financially right now. one of my friends asked if i was up for buying a house with him (can't remember if it would be just us, or if others would be in on it). it's not a bad idea, definitely something i had considered in the past.
a big pro, aside from splitting the cost and chores, is that we already work together in a start-up business. and while i mostly just work from home, it is must nicer having other people there while i work. when i'm bored here by myself, i all too easily spend the rest of the day watching tv and playing video games.
a big con is that my friend is not very good with money. his situation is not entirely his fault, but he's never been good about setting personal budgets. i worry that there would be many occasions where i'd have to pick up the slack for him. and if things get like that, then i'd run into the same problems that i'd have if i bought a house on my own.
Depends on what you are looking to rent. If you don't mind interesting and questionable neighbors, you can get a cheap appartment. I haven't rented anything since 1999; at that time, I lived in a 5 year old complex. A 800 sqft 1 bed was 410 a month; when I was moving out, the complex was sold to a company that subsidized it. I think the average rent for a 3 bed in a good school disctrict and nicer area ranges between 1000-2000. To compare on a buy, the average middle class neighborhood home price in my area range is 140,000 to 210,000. We live in a cheaper home that was 76,000 with 3 bed 1 1/2 bath 1400+ sqft Levit style (it is paid off, so yeah it is hard to move); it is old and in a so so neighborhood but a nice small home. Over the years, I acquired nicer vacant properties; I just haven't commited to which to sell and which to place a new house. I don't worry about school districts as my daughter in enrolled in the same Catholic prep school I attended.
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It sounds like you have a great opportunity if you can overcome some 'overcome-able' obstacles.
First, although he's your friend, you need to understand that if you do this that you are embarking on a business enterprise with him -- hopefully to both of your benefits. You would need to have legal papers drawn up and that document would need to address contingencies. A real estate attorney will be best able to advise you, but I would suggest that one of the clauses indicates -- precisely because your friend is not good with money -- that there be an automatic debit from each of your paychecks to cover the amount of the mortgage that goes directly to the mortgage company each month. If you are both in a financial position to do so, it would be prudent for each of you to place funds to cover six months worth of the mortgage into an unbreakable escrow account that could only be accessed in the event one of you loses your job, and even then only the funds from the person who has lost the job.
No doubt a real estate attorney will have other advice, but on the surface it looks like a great way to go. You have a common bond because of your work, you'll be able to brainstorm at home and you'll have the pride and financial (tax) benefits of home ownership...along with someone to share the expenses. Good luck to you.
Rent on my neck of the woods is about 1,000 to 1,500 for two bedroom apartments... on a side-note I hate the term 'throwing money down the drain when you rent if you can afford a mortgage' why don't we say that about gas? or electricity? you pay for a service being provided to you, in this case a place you can go to sleep and call home, many people don't qualify for a decent mortgage, and monthly payments are worse than apartment rent, sure you will own your house in 30 years, but then again, who's guaranteeing you'll live those 30 years?
Growing up happens in a heartbeat. One day you're in diapers; the next day you're gone... But the memories of childhood stay with you for the long haul. I remember a place... a town... a house like a lot of other houses... A yard like a lot of other yards... On a street like a lot of other streets. And the thing is... After all these years, I still look back with wonder...
You have a valid point. Most people don't live in their first house for 30 years, but they build equity and use that to upgrade. That's where my husband and I differ. I love my house! It's perfect, I'll never have to upgrade or downsize. He wants something bigger, but I want something that's perfect for 2 kids and not too big so it's not overwhelming when we retire. But I digress.
It took us a while to qualify for a decent mortgage, but our payments aren't much more than we were paying for rent. Unfortunately now utilities aren't included when you're a homeowner, and we don't have a landlord to fix every little thing that goes wrong. Last night at 2am my hot water tank blew. My basement's flooded, the carpet's soaked and I'm hosting Christmas this year. Even though the house was rewired 9 months ago we still had some electrical issues etc. Being a homeowner has some disadvantages as well as you can see.
All I will say is try living in NYC.... SMHStudios Apt. can go as high as 1100/month and this is even now in the considered 'least desired' neighborhoods. So do the math and you can begin to imagine what an apt. with rooms could cost....
'Tis the wind and nothing more.....
I live in L.A. and pay $2100 for a 3 Bedroom house. BUT I use to live in a two bedroom apartment and was paying $1900. Bloody awful.
$2100 per month would afford me my dream home. That kind of cash can get you a seriously nice place here in my city. Mind you, from what I've seen, it can get you one heck of a home in any of the states where the real estate has crashed.
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