Rob Carrick – “…the financial blood-sucking that home ownership entails”; “…endless discretionary expenses.”

“Renting is the obvious alternative for someone who is unready for the financial blood-sucking that home ownership entails.
But low vacancy rates have made it a landlord’s market in some cities, notably in Toronto. Might as well buy as pay hefty rents, some will say.
Don’t listen, Gen Y. Tough it out in the rental market unless you can truly afford a home or, if extreme measures are required, move back in with your parents for a while to save a down payment.”

“As tough as the rental market may be, it’s still a better option for Gen Y than buying prematurely. Renting, at least, is a finite expense each month. Housing is infinite – there are fixed costs, plus endless discretionary expenses. Buying is not the solution to difficulties in finding a place to rent, at least not without further price declines. Instead, find a roommate and pool your resources to cut rental costs.”
– from ‘Why Gen Y should tough it out in the rental market’, Rob Carrick, G&M, 1 Oct 2012

Rob Carrick is fairly well accepted across the nation as a sensible and measured voice regarding personal finance.
This piece is noteworthy for his vivid language describing some of the pitfalls of home ownership.
He also appears to now accept that “falling prices” are a given.
The wide dissemination of these thoughts contributes to the growing skeptical sentiment within the RE market.
– vreaa

4 responses to “Rob Carrick – “…the financial blood-sucking that home ownership entails”; “…endless discretionary expenses.”

  1. Renters Revenge

    Yep, sounds like one great big hairy hassle!

  2. joe_blown_away_by_high_housing_costs

    I like that Carrick recognizes that the rental market is tough. So many RE bears seem to miss that. They seem to think renters are laughing and that it is so easy to just find a rental you can afford. Why not just rent? It IS a tough rental market, not only in Toronto but also in Vancouver. It is far tougher now than when I started renting in the late 1990s. You’ve got low vacancy rates, renoviction, lack of maintenance (some places you are lucky if the hot water and heat are working), and high rents. If you have a cat, forgetaboutit!

    I agree with the bears that renting is better than buying in this market. But don’t underestimate the difficulties of renting.

  3. He lost me after, “Gen Y…move back in with your parents for a while…”
    🙂

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s