Owning versus renting

[IanO]

This is very true and something I do enjoy as well.

I'll refine my opinion on condo purchase a little more.... I would not buy into an unbuilt development again.

The first 2 years are usually the worst... well until year ~25.

Developers craft (guess at) their proposed condo budget/operating sheet 2-3 years before it becomes real. They generally underestimate things to make proposed condo fees look more attractive and conveniently leave things out.

Given best practices, inflation and prudent direction for these things, I would generally expect condo fees to increase 10-20% month 2 and another 10 year 2 or 3.

 

[ChazYEG]

However, I do dislike the idea that it HAS to be either a small condo in a tower or a suburban car-dependent hellscape 40 minutes away from the city center.

I agree that we need to have more options, the famous "missing middle", and more options in the suburbs.

Personally, anything that's not a concrete jungle filled with high-rises, or a large and densely packed urban area with back-to-back mid-rises lining the streets (ie Barcelonas and Paris of the world) is a hellscape. I could never live anywhere where the average heigh of the buildings is less than 5 stories, hahahaha.

The very concept of being completely noise-free and quiet, at any given time, like any suburb will always be, regardless not density, sends shivers down my spine.

 

[Calfaer]

The very concept of being completely noise-free and quiet, at any given time, like any suburb will always be, regardless not density, sends shivers down my spine.

I would somewhat agree - the quiet that is found in a typical car-dependent suburban wasteland is just creepy and lifeless.

But what's ironic about that is that most "city noise" comes from...well, cars. Revving engines, tires on road, honking, etc. constitutes most of the noise found in urban centers. Psychologically, that ends up causing irritation and annoyance in people. Urban centers that are primarily walkable and separated from car traffic are lively and nice, but relatively quiet. Having to shout just to be heard over the modded motorcycle 10 blocks down is probably not anyone's idea of lively.

More ironic is that the people who complain the most about not wanting to go to city centers because it's noisy and crowded are suburbanites who drive their cars there!

 

[TAS]

Some recent data: buying is still considered a more cost-effective option, with average monthly mortgage payments being less expensive than rental prices in Edmonton, Calgary, Winnipeg and Saskatoon.

In fact, Edmonton is #1 in this regard. Didn't realize rental prices in Edmonton are that much lower than rest of Canada, and still its more cost-effective to buy based on average mortgage payments.

 

[kcantor]

^
monthly mortgage payments may be less than rental payments but it’s still apples to oranges.

if you own, your total occupancy cost (directly or through condo fees) also needs to include utilities, maintenance, repairs, capital replacement for everything from roofs to appliances, building insurance and property taxes etc.

if moving is a potential occurrence, it’s accomplished in less time and at a lower cost and with less market risk if you rent rather than own.

 

[occidentalcapital]

Some recent data: buying is still considered a more cost-effective option, with average monthly mortgage payments being less expensive than rental prices in Edmonton, Calgary, Winnipeg and Saskatoon.

In fact, Edmonton is #1 in this regard. Didn't realize rental prices in Edmonton are that much lower than rest of Canada, and still its more cost-effective to buy based on average mortgage payments.

View attachment 434140

Don't forget that there can be unexpected one time costs with condo ownership.

 

[TAS]

^
monthly mortgage payments may be less than rental payments but it’s still apples to oranges.

if you own, your total occupancy cost (directly or through condo fees) also needs to include utilities, maintenance, repairs, capital replacement for everything from roofs to appliances, building insurance and property taxes etc.

if moving is a potential occurrence, it’s accomplished in less time and at a lower cost and with less market risk if you rent rather than own.

All those costs you outline further emphasize then in markets outside of Edmonton how even more expensive it is to own a condo versus renting.
It's interesting how in those markets real estate values continued to rise given how much more costly it is to own versus rent.

 

[archited]

On the ownership side there is also the inflationary equity increment that adds value (in most instances).

 

[IanO]

Another 50 basis points will push even more people towards rental.

 

[TAS]

Another 50 basis points will push even more people towards rental.

And increase rents. I know a realtor who owns several apartments and he had his mortgage locked in for 10 years. It is now due for renewal and he says his rental rates will have to increase.
And as more people are renting, that will reduce vacancy rates and drive up monthly rents.