“If house prices here don’t revert, ever, when I die at 100, I will have lived 100 years in rentals.”

“If I die tomorrow, I would have lived my entire 38 years (whole life) in rentals. And if house prices here don’t revert ever, when I die at 100, I will have lived 100 years in rentals, too.”
Ray at VREAA 12 Sep 2012 12:35pm

16 responses to ““If house prices here don’t revert, ever, when I die at 100, I will have lived 100 years in rentals.”

  1. Sad. Have some self-respect and buy.

  2. Very sad.Yeah get in to the market and buy

  3. SO WHAT? Most of the world lives in rentals, and it affords you a much better lifestyle!

    • Correct, nothing whatsoever wrong with renting, and particularly wise when the rent:price ratio is so out of whack.
      In a society that is not long-term decent-quality rental oriented, it can at the same time be very inconvenient to rent. This has been one of the (many) pressures that have led people to overextend into buying through the spec mania.

      • UBCGhettodweller

        Good point. Rentals are usually seen as just something for low income earners (read barely above the poverty line,) students, and economic transients. Hence, it’s OK if it’s crappy.

        Maybe this will change.

    • The problem is Canadians underestimate the downside risk to real estate, otherwise they’d see the obvious value in offloading the risk to an unsuspecting landlord. Prices have been going up for so long it’s like people are collectively brainwashed into thinking renting is always a waste of money, despite fundamentals that say otherwise.

  4. Carioca Canuck

    I am 52 and have rented my entire life.

    There is nothing wrong with it whatsoever. I think about “shelter” this way……..you are asleep in it for 8 hours a day, so you cannot enjoy any of the benefits that all that granite, hardwood, and those ever so shiny stainless steel appliances provide……LOL !! So, that leaves about 6 additional hours in a day that you are home, usually in the shower, getting ready for work, and then cooking dinner and sitting in front of the TV or using a laptop. Finally, the rest of the time you are not even there………you’ve got a job to go to and friends to see…..etc…..etc.

    Why on earth would you pay two or three times as much for the same thing, when you can’t even use it half the time anyways, and when you are there, you are awake only 25% of the time. Seems like the ultimate in stupidity to me.

    • Because… you may only be in the actual presence of the granite and shiny appliances for an hour or two a day, but you carry the representation of your home with the granite and shiny appliances with you, in your mind, while you’re at work, or out with friends… some people even dream about their granite. And that mental representation gives some people such warm-and-fuzzies that, for them, it makes it worth it at almost any price.

      More important, perhaps, through the Vancouver spec mania in RE, the home has become a financial instrument, and the resultant mental construct of equating one’s home with ever-growing financial security really must have felt priceless to many homeowners.

      • Needless to say, when spec manias implode, the internal representation of ‘home’ turns completely sour, such that, in the resultant trough, many homeowners will be disgusted and nauseated by the thought of ‘home’.

        The point is that homes should neither be objects of infatuation nor disgust… Spec manias take the community on that roller-coaster ride; they result in misallocated energies.

  5. If I were to die tomorrow, I as well would have lived my entire life, 33 years, in rentals. Since at least the mid-2000’s I’ve been calling for a correction in the Vancouver market and would not have bought (not that I could afford to anyway), although at times felt despair in knowing that I may never own a modest home in the city in which I was born; recently, as the market has begun to tank, I have actually begun to feel much better, almost exuberant, knowing that not only do I not own a quickly depreciating asset that would leave me with an underwater mortgage, but I can move wherever I want anytime I want because I’m not trapped in home ownership! In the long run, it seems that your money is better off in other assets anyway, and you can’t beat the freedom of being a renter!

  6. I also have lived my life in rentals. Owning – or setting us up so that we could own, by encouraging our education and demanding we worked hard – was always a goal for my mother.

    I probably would own except that 2002 was the beginning of my saving for down payment, and that year saw some of those insane bidding wars that were like Future Shop on Boxing Day. Simply nuts.

    However, I am renting a house and have never lived in one before. Wow, am I glad my first exposure to houses was not ownership! I love this place but I see all the money it should be getting… It feels like it would be another dependent. Possibly rewarding, but still a heck of a lot of work. Right now, my care-taking money and time is going into my children, community, and family! I’m pretty darn busy, actually.

    I would like to own, someday, but these days mainly because I would like not to be at the mercy of a pet-scorning market. I’ve been watching three rentals sit open for three or four months in my neighbourhood all which are great, but none which allow a cat (which, I’ll point out, were in part domesticated because rodents do a lot of damage to houses…)

    And I know that if they allowed a cat they’d rent, because I know two families who were looking. So, the question – do these landlords really believe a cat would do more than $5000- vacancy loss plus pet deposit amount of damage? S

  7. I haven’t rented my whole life, only the past 4 years and I gotta say It is my preference. The only negative aspect was that I was assured that the owner would not sell when I first started renting. We signed a 1 year lease as we didn’t want to be locked in until we knew we liked the place; first month after the lease ended…they listed and wouldn’t sign another lease. We started looking and moved out a week after the place sold. The landlord offered us another bigger place they owned (in the same building) but after the realtor mentioned that we decorate very nicely and make the place look more homelike than staging, I caught on to what they were up to and offered to only move in with a 3 year lease; didn’t happen.

    Anyway, we moved to a different area of town that we discovered fit us even better. Two years in and we are moving again this time to a bigger place two blocks away – our choice and with as long a lease as we like. We’re we owning this whole time we would never have discovered the part of town we are in right now without massive realtor fees!

  8. rent for 100 years, funny.
    You could write the sequel to Marquez’s “100 Years of Solitude”…call it “100 years of Sevitude” LOL

  9. On the other hand……….

    http://www.inquisitr.com/352420/homeless-billionaire-nicolas-berggruen-chooses-to-live-simply/

    Here’s a story about the “homeless billionaire”……….who sold his 31st floor apartment in the Pierre Hotel in Manhattan (I’ve had lunch there and the place is spectacular) as well as his Miami home 12 years ago, and now he only lives in hotels as he doesn’t think having such possessions is worth it. Neither do I…………

    So, should we call him the “billionaire renter” ?

  10. Some of you guys here need to get out more… I mean, out of Vancouver.
    Only in Van is there something wrong with renting.
    You can rent all your life in New York and Paris and no one would look twice.
    I’d rather inherit stocks than a moldy house.
    But maybe thats just me.

  11. I was blessed at being adept at math and throughout my mid-to-late 20s after my degree, I started to think about homeownership, but studying the numbers of price-rent showed how bad the purchase would be. But since I had so much money, ironically, this forced me into self educating in personal finance to invest it. Hitting my first $100k of course is a milestone we all remember. Then it shocks you how quickly the followon $100ks come. Getting invited to the TD President’s Account at $500k investable assets was my last milestone (albeit kind of stupid). As I was quoted in this original post I’ve always rented. 12 years renting my current digs. I’ve seen the landlord once. Never signed a lease in my life. Never asked them for a dime in maintenance though either (nothing seems to break?). With my yearly housing costs at 6% of my yearly income, it’s not even a serious expense. I’ve been married a few years now and many say my position on housing might change with a baby. We’ll see… but if so, it looks like my timing is impeccable with the crash in progress. I’ll probably rent just on principle now… certainly until homeownership is frowned upon in this city, then I might scoop one for cash by then.

    I like to read about the mania and I’m fascinated with the anecdotes and vreaa’s brilliant assessment of each one. So thanks for that.

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