“It is so engrained in our minds that owning is the way to go that people try to do it at all costs… Most people have the idea that renting is a waste of money, without doing any math.”

This from davers as a comment in a thread on VREAA 28 Oct 2009 at 2:39 pm -

“I simply don’t understand all these people killing themselves to buy a home. I think it is just so engrained in our minds that owning is the way to go that people will try to do it at all costs. I was talking to a coworker yesterday and he was trying to figure out when he was going to move out of his parents house. He figured he would have all his debts paid off (student loans) and enough for a downpayment by the time he was 25. “But then you live at home until you are 25, why don’t you just rent and save money once you have your debts paid off?” I asked. “But renting is just a waste of money, I would rather just own from the get go” he answered. I quickly explained the rent I pay is less than what my landlord pays in property taxes, strata fees and mortgage interest, which are all ‘a waste of money’ as well. If I was to purchase my current place with 10% down and a 25 year mortgage, interest would be 1050, strata 250 and property taxes 125. (total 1425). Yet my rent is only 1200. That doesnt even take into account special assessments and the depreciation of the building. After this explaination of how I was actually saving 225 a month he began to reconsider his way of thinking. I got the feeling from this conversation that most people probably have the idea that renting is always a waste of money without doing any math. This is probably because save for the last 4-5 years and the blip in the early 80s, this calculation would show that the numbers are pretty close. People just haven’t realized how much this calculation has changed in the past few years.”

One response to ““It is so engrained in our minds that owning is the way to go that people try to do it at all costs… Most people have the idea that renting is a waste of money, without doing any math.”

  1. Thanks to davers for this informative post.

    If you have an anecdote to share, either post it as a comment on the latest thread, or e-mail it to vreaa at -
    vreaa@hotmail.com

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