We want to hear all of your thoughts on this topic! Drop them below (and don't forget to like the video!) 😊

I've been a homeowner now for almost 3 years. Purchased my first property in early 2020 before the pandemic hit. Let me tell you the amount of stress and unforeseen house issues I've encountered is insane. When I was a renter previously I was much happier until management changed and the apartments became run down so I purchased this home. You definitely need a huge amount of savings before moving into a home. And what homeowners don't tell you is, yes you'll gain equity but you have to work for that equity by fixing up stuff and spending money to do it and fighting with contractors. So it takes many years to recoup the investment you put into a home. However like you pointed out the home can be used as a vehicle for leverage to obtain other investments. Overall, I definitely wouldn't rush into buying a home if you're happy renting and you are good at saving. However now that I'm a homeowner and lean towards more of the pros vs the cons, I feel for me personally homeownership is best. There's no right or wrong answer for renting vs buying. It's a personal preference. Great video btw!

@stephandden

Жыл бұрын

I think this line "yes you'll gain equity but you have to work for that equity" is such a great point - it doesn't mean you shouldn't buy the house, but it's important to talk about the realities, too! There's a lot of nuance to these convos. We're glad to hear you're happy with your decision + that you enjoyed this vid, thank you! 😊

@asadb1990

Жыл бұрын

sure home ownership is tough but nothing beats having your own place and not living under a landlord's rule. so many management companies have such strict leases which make it unbearable.

I just purchased a townhouse and moved to Newmarket last month. The unexpected costs are more than I could imagine to maintain a home. Small things add up, like lawnmower, snow shovel, and even halloween decorations and candies 😅

@stephandden

Жыл бұрын

That's a great point - the costs of maintenance add up, and even the little things that you're more likely to do and pay for as a homeowner (like halloween!) add up. Thanks for sharing this!

When I was in my early 20s someone told me "the best time to buy a house is when you're ready" which sounded pretty ridiculous at the time but makes total sense to me now as I get closer to 30. Life can be so transitional (especially in your 20s) you likely have to relocate for work, school, relationships etc. so financial planning and permanence seems like a foreign concept. As maddening as it feels to pay down someone else's mortgage while not being able to build equity through the avenue of home ownership, if you're not ready to commit because your life is in a constant state of transition or because you like having mobility then renting makes the most logistical sense. Of course you can sell your house but who wants to do that every few years, you could also become a landlord and try to use your previous dwellings as income properties but that is a whole other commitment that you might not be ready/want to get into. All to say, I don't mind renting right now as it suits my lifestyle but I still think there is more value in home ownership long term (as long as it suits your lifestyle).

@stephandden

Жыл бұрын

Hey Dane! Definitely agree with your thought process on this - especially that last line. 😊

Love your take on this! I was always told "Renting is paying someone else's mortgage" and I believed it until I sat down with the numbers. Renting may cost the same as the bond but there are tons of other costs and stresses you don't have to worry about as a renter that the owner does have to worry about. On top of that, I always say there is no need to rush into a 25 year commitment.

@stephandden

Жыл бұрын

Hey Cindy! Great points - it's the rush that really stops people from looking at the full picture. Thanks for watching!

@judithgrace9850

Жыл бұрын

I did buy a home. That was robbed and sat on fire. Apartment was safer for me.since I travelled a lot.

I bought my house on my own when I was 21 because I had a 40% downpayment from insurance for an accident I was in at 15. I just paid off my mortgage at 45. I grew up with the “You HAVE to buy a house or else you’re just paying someone else’s mortgage!” thing. My parents were on about property values that don’t really matter much until you’re selling and are artificially inflated. And you still need to find somewhere else to live when you do sell. I’m not planning on moving for at least 20 years or more Thank you SO MUCH for these great videos! Watching them is really helping me to sort out the best strategies for moving forward in this new stage of life. Proactive financial strategies are what help you meet your goals… whether you rent or own! ❤️❤️

This had been a never ending debate. Like all things personal finance, it is very personal. Thanks for sharing your reasons with us. My reasons are similar to yours for owning, better cashflow for us, when we move around we can rent out our place. No one situation is the same. If we didn't own many years ago, we would buy now however.

@stephandden

Жыл бұрын

So true, there's many different angles you could look at this conversation from. Thanks for watching! 😊

My husband and I bought our first home in Toronto back in June. We're only 27, and still getting settled in our careers, but this is where we see ourselves long-term, so the timing was right for us. We definitely had a lot of mixed opinions about buying then, the market was still very high at the time, and people were predicting a drop. However, we were locked in under 3%, so looking at where things are at now, we are so happy we went all in when we had the chance.

@stephandden758

Жыл бұрын

⬆️⬆️⬆️⬆️☎️☎️☎️📩📩📩

@mobfxtrading

Жыл бұрын

How long did you lock in the under 3% rate for? 5yr? 3yr?

It would be interesting having a video to cover the last question: "Why don't you buy a house now? You're only going to be further priced out of the market"

Glad there are other Torontonians making content here about this. It would be interesting to see a cost benefit analysis after 30-40 years between both scenarios considering the avg rate of return on an index fund for the renter’s excess cash & the average rate of appreciation for a homeowner.

God this is honestly a very encouraging video to watch. My partner and I made the compromise to live WAY north in etobicoke after we got married with the thinly veiled understanding that the “cheap” rent would help us save up for a house. The rent is incredibly cheap but since our lives are primarily downtown we’ve lost costs on gas, having to eat out so much bc we would leave for downtown early / get home late to beat rush hour, and most of all hours wasted on commuting. We’re considering just biting the bullet and renting downtown instead while still passively investing monthly. Figured it isn’t worth rushing to “own a home” when it means being miserable for the rest of our 20’s so far from everything. We were mostly just worried from all the judgement we would get from parents and family and the older gen when we make the move.

@stephandden

Жыл бұрын

What you said at the end is a great point - a lot of the time people make decisions based on judgement from people around them / the pressure to buy asap, vs looking at what's best for their current situation. I think it's great to make a plan and work towards it, and adjust that plan over time! As long as you and your partner are on the same page it sounds like you'll figure it out 😊

Off topic but the quality of your videos are soooo good. Such an enjoyable experience watching it end to end.

@stephandden

Жыл бұрын

Thanks so much, Iram! We appreciate that 😊

So true. Thank you for this video. One thing every financial adviser is overlooking is how it's hard to sell a house to finance retirement. I am 56 now. My very small townhouse is the only investment I have. Due to the health issue, it would be nice to retire now, sell the house, and rent. But it's so hard even to entertain the idea of selling a home my family lived in for 30 years. Not to mention that my adult children live with me and can't afford to move out.

@stephandden

Жыл бұрын

This is a great point, and a whole other part of this conversation - using your primary residence as an investment to cash in on retirement! There’s definitely difficulties around that, that can be hard to plan for. Thanks for sharing this!

@stevemanninghomeinsight60

Жыл бұрын

I like your channel, hope it grows for both you and us!

@modernfiftytv

Жыл бұрын

@@stevemanninghomeinsight60 Thank you :0

I rather not own a house because, like you (Den), I don't want to be stuck in one place forever. I rather pay as I go and leave whenever I want. Also, the maintenance on a house is very, very expensive. When you're in an apartment those costs are covered. This is a great video. You guys did a great job providing information and explaining the benefits of renting vs. owning. And I also don't agree with those people who say "if you rent you're making your landlord rich." I mean, if you think about it, even if you "own" a house you're still making the bank rich. Might as well be satisfied with peace of mind by renting where all your repairs will be covered.

@stephandden

Жыл бұрын

We love that line - 'even if you "own" a house you're still making the bank rich' - that's a good way to put it! Buying can be great for many reasons, but it's important to look at the full picture and make the right decision, at the right time, for yourself. Thanks for commenting as always 🙌🏿🙌🏻

@michaelssali

Жыл бұрын

@@stephandden you're welcome

When I worked the numbers in the area where I live, the costs for taxes, HOA fees, and maintenance added up to almost 6 months' rent anyway, so I've been happier renting. I bought a brand-new house a few years ago that had broken pipes the builders had covered up and never addressed. I'm renting another place now and am fortunate that the managers have taken care of any issues I've had within a week. I found cracks in the shower that the original owner had patched over with sealant. The new management had it professionally repaired and it looks brand-new. I'm so thankful I didn't have the headache of trying to find a trustworthy professional myself, nor was there any extra expense out of my pocket. I definitely understand that home ownership can be the right choice for some people, but for me, renting has truly been a better choice, and much less stressful.

Landlords who say they or their kids are moving into the unit to force renters out and raise prices for next tenants are THE WORST. I've seen it done and it's awful for the current tenant, so disruptive for their familes :(

@stephandden

Жыл бұрын

It's totally disruptive for the families being pushed out, and so not ideal!

We’ve lived in Toronto for the last year. Originally from Calgary. My wife works in capital markets, and we’re on a rotation here. We can’t wait until we can move back to Calgary! People don’t understand how bad Toronto is in comparison!

@stephandden

Жыл бұрын

Hey Zach! We definitely feel you on that one - how long is the rotation and do you plan to purchase once you're back in Calgary? It's definitely a tough start for many couples! The dream of owning is out of reach for a lot of people and it's tough finding a spacious yet affordable place to rent if you're in Toronto proper.

@zachkosteriva1914

Жыл бұрын

@@stephandden hopefully we can move back to Calgary by September this year. Yes! We’ve actually just bought our second home in downtown Calgary. I work for a high-rise condo developer in Calgary. We just purchased a 1000sq ft loft in our new building. With a 10% deposit and today’s interest rates factoring in property, taxes, mortgage, and condo fees. Our new home will cost us almost identical, as what we pay for rent for a one bedroom in Toronto.

Thanks for sharing! We’re a family of 3 (almost 4) renting in a major city and at this time in our life, we love living downtown. Some people don’t understand it but the flexibility and options of being in the city makes sense for us… being able to walk everywhere and being close to our community. People say you’re throwing your rent money away but we’re not throwing money away on gas which would be the case if we moved away from the city 😂

I think there is a lot of pressure to own a home at any cost because if you don't, you're throwing away money. I know people who are "house poor" in the name of owning a home. When in reality owning home might not be best financial choice for you currently.

@stephandden

Жыл бұрын

Totally - the concept that buying a house you can't really afford is better than not buying a house at all, and that can lead to being 'house poor'!

@chaneller7048

Жыл бұрын

It's a problem. I think people in Canada feel like they have no option, as our cost of living and housing is so high. People would rather get into the market as soon as they can in fear of being priced out, and some people have given up on ever owning a home. In addition, we are already seeing the way people live in Canada change, as we have an increase in multigenerational households. It's not necessarily a bad thing, but owning property is then for the "elite" of society as having property becomes an "insurance" that gives families generational wealth. Thanks for such wonderful videos every week.

Thank you for mentioning, not being willing to trade up on Diversity in cultures. It's a subject most ppl don't bring up when looking to move. T.O and many major cities are great for that. No matter where a you go there is somewhere for you!

@stephandden758

Жыл бұрын

Feedback appreciated Chat up Let's talk✍️✍️✍️☝️☝️🗼

It’s hard to say what’s the best time to buy. Investing in real estate is more speculative. It home prices accelerate higher than stocks over the course of 10 years and get to NYC and HK levels then yeah get a home but otherwise I think stock market is generally a safer approach if you invest the average.

@asadb1990

Жыл бұрын

i feel in a big city and nearby cities where cost of living is high, its best to own a property and you live there when you live in town and if you want to move away, rent out your place on airbnb or long term rental.

Ok wait, but you know that clip of Ramit Sethi was cut off too early - he believes the opposite 🤣 lol.

@adsimal

Жыл бұрын

Love the video by the way! Very frequent topic of conversation in my Toronto-based family.

@stephandden

Жыл бұрын

Haha yes, he’s definitely on the side debunking that myth - we just used him asking that questions to answer it from our own perspective. And we’re glad you enjoyed the video! 😊

Great video! I waited until I was 34 to buy. Mobility for work is everything when you’re young. It allowed to take a year off to travel the world and jump on a job in small town Alberta close to the mountains where make 175k a year and could buy a nice a house on 1/4 of an acre for 207k. I could only do this because I wasn’t locked into home ownership and like you preach, I saved a ton of money so that I could pursue opportunities that came my way. And now that I’ve bought I’m spending allll of my money on my house: roof 4K, fence 9k, radon mitigation 5k, hot water heater 1.5k etc. 😩 But I’ve seen your budget videos! You two are not taking advantage of the benefits of being in Toronto: restaurants, night life, museums, etc. In Calgary and other big cities in the prairies you can walk everywhere. There is way more green space. A lot more sunlight in the winters. And it is WAY cheaper. You will save just as much money splitting rent as you would if you were one person. The average rent in Toronto is $2474. INSANE.

@stephandden

Жыл бұрын

Thanks, Sam! 😊

Such good insight!!!! What camera do you use to make your videos?

Very reasonable overview. You guys are making a very sensible decision

@stephandden

Жыл бұрын

Thanks so much 😊

Hi Denis, Happy Sunday to you. This is not the best time to buy. Please wait until next year. Interest rates are too high right now.🙏

@stephandden

Жыл бұрын

No plans to buy right now 😊 happy Sunday!

Plus Dave Ramsey comes from a family of real estate agents plus he use to sell real estate. So I feel like he has a huge bias on buying a home.

@stephandden

Жыл бұрын

That’s a great point!

Love this video! Thanks for sharing!

@stephandden

Жыл бұрын

Thanks for watching! 🙌🏿🙌🏻

I've watched this channel for a while and I have found it very informative. However, would you be able to show us what you guys do for fun? I know you're saving a lot of money, but what do you do for fun? Do you travel? This comment is not meant to be shady at all - like I said, I'm a long time fan. I'm just genuinely curious.

@lnejavi

Жыл бұрын

BTW, I moved from the GTA to Montreal. Currently, it's like $1350 for a really nice 1 bedroom apartment. The city has culture and very diverse. Everything is within walking distance and I only speak English.

@stephandden

Жыл бұрын

Hey! We do a lot of things for fun - but our channel is about money and personal finance specifically, so that’s what we share on here 😊 we sometimes share more fun things and what we get up to on Instagram, though!

@stephandden

Жыл бұрын

Also, thanks for being a long time viewer! 🙌🏿🙌🏻

I’ve been struggling with the idea that my parents bought a single family home on minimum wage in early 90s and two educated adults working in their field struggle to buy a home like that now. Same city, same area of city. Trying to save to put a 20% down on a avg single family home is tough and kinda sad. Im Coming to conclusion I just may rent. I would definitely like to see the video on why would you not buy now you’ll be further priced out. Thanks for all the videos, I send them to all my friends lol

The housing market in the GTA is abysmal.

@stephandden

Жыл бұрын

It’s a crazy market, for sure! 👀

I am glad I bought my house in 2021 when the rates were low, because here in the DC area, the pricing on rate now? Is the same cost my my mortgage now. The rental side up in rate by 13% in 12months. Sheesh

@stephandden

Жыл бұрын

We're glad the timing worked out well for you! It's crazy how quickly the market can fluctuate

@_jasminedy

Жыл бұрын

@@stephandden yes!!! Exactly! Thank you! ❤️ love the videos!!!

Id love to see a video breaking down your opinion of Dave Ramseys baby steps.

@stephandden

Жыл бұрын

Thanks for the suggestion - we do have thoughts on that, so we’ll this is mind for a future vid idea 😊 We listened to a lot of Dave Ramsey years ago, and specifically his thoughts on paying off debt - his opinions on other topics and delivery overall is definitely interesting, though!

Great points all around. It’s important to forecast future changes in cash flow and to avoid being house poor. For me, home ownership has been a big driver in net worth since buying in 2019. Monthly costs have been controlled especially with promotions. I would say the biggest benefit has been the leverage and use of equity to diversify into investment properties. And of course I’m still also investing in stocks 😊

@stephandden

Жыл бұрын

Love hearing that - it sounds like you're doing a great job 😊

I think it’s worth noting here the amount of interest on a mortgage is ALSO like throwing money away, just at a bank. I want to point out opportunity cost of a mortgage. Let’s work with some GTA numbers: Try a mortgage calculator to see this. A $932000 mortgage ($1mil-downpayment) 5% interest (expect this from now on) 30 year amortization Get ready for it…. $874000 in INTEREST on top of the mortgage.

@stephandden758

Жыл бұрын

Feedback appreciated Chat up Let's talk

The only thing I disagree with is the HGTV Effect. The social pressures to own your own home go back to the 50s and the rise of middle class suburbia. When I was growing up in the 80s there was a general understanding that only poor people rent. I own my own home with a paid off mortgage, but I don't see it as the no-brainer option for your generation that it was with mine. Our first home cost 2-3X our gross family income. There is a new reality now, and us older folks have to adjust our outlooks instead of just assuming that things will always be the same and judging people.

@stephandden

Жыл бұрын

Thanks for sharing this! 😊

Yes please to that second video!!!

@stephandden

Жыл бұрын

🙌🏿🙌🏻

I think if you're single (not married no kids in the near future) renting is better in my opinion.

Hey guys just wanted to point out that Ramit Sethi does NOT side on the sentiment that renting is throwing money away. In fact he rents even as a millionaire. Perhaps better to not misinterprete that clip

@stephandden

Жыл бұрын

Yes, we know his thoughts well - that’s why we used his clip! He was pointing out that people always say ‘if you’re paying rent, you’re throwing money away’, which is the type of statement we’re addressing in this video, too 😊

When I first got married my wife wanted to rent. We went to see a few places. The last place we walk out feeling I couldn’t convince my wife to not rent, we then saw what the dude was driving. I said see what our money goes too. Well 12 years later we are on our second house. I feel renting is a waste of money. I do agree that everyone’s situation is different.

@stephandden

Жыл бұрын

Ha, can totally picture that! It definitely depends on the situation - if you can afford to buy and are prepared to, then that's great! Thanks for sharing 😊

I think you'd make a great agent Steph!

Nope - you are cherry picking DR s comment. He is assuming it is the right decision for you personally. If so buy. He is not saying it is for everyone. You missed the assumption which is if it is the right choice for you then buy. that s all. For you, you are choosing lifestyle, finet just remember this if inflation buries you one day. You choose lifestyle ie yolo reasons and not blame the high cost of housing. Lots of people in Vancouver never bought a house in the late eighties, early ninties, 2000 etc becasue rent was cheaper and lifestyle - eating out, travel etc was a higher priorities. These are the same people whining and complaining that rent and house prices are unaffordable and they are blaming greedy landlords, foreign buyers etc but will NOT look in the mirror. PSS home ownership has always been more expensive than rent. Always!!! - ie as prices skyrocket so do property taxes. as inflation rises do maint costs etc. It is fine dont buy a house. Your choice, your life. All that I am saying is do not whine and complain about it if or when things dont go your way and you can not afford to buy. This is always the risk. A risk to buy. A risk to not buy. But ALWAYS a personal choice - just like living beyond ones own means ie student loans, credit card, student loans, house poor, rents skyrocketing , career choice etc etc etc Nowadays, many people are blaming investors or developers, who are buying up all the real estate. Sound familiar to - previous blaming of foreign ownership responsible for driving up the cost. Chooce wisely people and then take personal responsibility for your own freedom to choose.

Renting gives you freedom move when you want lot people such as Greg Cardone, Garyvee another ppl rent

I don't agree that renting a small place for 2k a month is better than buying, also buying is not only the advice of the older generation. I'm so glad we bought our townhouse in 2016 as it almost doubled in price. We also lived overseas for few months and rented our home as Airbnb which generated passive income for us on top of paying off our mortgage. Also Ottawa is very multicultural and worth considering, the houses are way cheaper than Toronto.

@stephandden

Жыл бұрын

Our point wasn’t that it was better, but that it works best for us at the moment 😊 (we plan to buy in the future!). We went to school in Ottawa for 4-5 years! Personally we don’t see ourselves going back, but it can be a cheaper market if that’s what someone is looking for!

@zeed683

Жыл бұрын

@@stephandden I don't blame you lol Ottawa could be very boring but it's cheaper and still very multicultural 🙃

can you please do a video on rent to own🤩

Yes please to a video on getting more priced out as time goes on!!!

i think you guys would really like calgary!! i am from there and moved here for school!! everything is so expensive

@stephandden

Жыл бұрын

We're glad you liked the move! We don't see ourselves moving too far from the GTA as long as we're in Canada 😊

Omg yay come to Alberta!! Hahah

@stephandden

Жыл бұрын

Ha! We don't see ourselves living anywhere that's too far from Toronto if we stay in Canada 😊

Maybe soon-ish, but I have to disagree with Mr. Ramsey. Please do that 'priced out video'.

Move to Waterloo.

@stephandden

Жыл бұрын

Have you lived in Waterloo before? 😊

Buy!!! With a few years of rent payments you can pay cash for small brick house. Buy cheap fixer upper and no mortgage will beat renting all day long. If you're lazy, this won't work because you will have to do some of the work yourself. This is only temporary, a few trips to home depot, weekends painting, this will free up a life time of income in the long term.

@stephandden

Жыл бұрын

There’s definitely smart ways to go about buying more affordably, if you can find a cheap fixer upper! 😊

Personally I feel that reality here in Canada is our country is now more of a work rent until you are ready for retirement than leave the country retire some place like Panama etc visit Canada keep your dual citizenship for healthcare incase . Are politicians are raking in on the backs of taxpayers.

@stephandden758

Жыл бұрын

Chat up for more profitable investment strategies......

I know, using myself an example is purely anecdotal but I'm "younger" Millennial and I'lll say that the real estate market gives us an edge in terms of leveraging our net worth. I find many focus on income as opposed to net worth. I'd rather be worth 6 figures and making 5 figures than making 6 figure and be worth nothing or less; just sayin' Edit: I'm definitely biased as I grew up in the GTA and recently moved to Calgary but my opinion still stands 😅

@stephandden

Жыл бұрын

We agree with your point about income - making 'a lot of money' isn't the only thing that matters. You can make a lot of money and spend it all, leaving you with nothing for the future. A lot of the time it's about balance and being intentional with your money!

U need attractive KZread Thumbnail designer for more views?

Toronto should remove its rent control. Sorry to say - but time for tenants to join the party.

Dude you guys are too smart to be making the argument that renting is better than owning. Just say you would rather not own a house bc it's exspensive af in Canada to get one. In that case get a cheap house in Cincinnati Ohio for 130k which is about 25k down to get the keys . Put it on airbnb and make 2-3k a mo easy. Yes there will be cap ex like water heaters breaking etc but that won't bankrupt you. Replacement costs incidentals won't run you more than 5k max, foundation issues or anything that will run 15k or above would be caught early in the pre inspection before purchase. Homeownership pros far outweighs the cons. I think the only thing that made sense to me that you stated was that you had more flexibility renting. That's true but if you wanted to move out you could just hire movers and pack all confidential documents yourself. You can later have a property management handle everything without any out of pocket exspenses while they take a percentage of all the monthly profits. I can only agree that it's not worth it to buy a home now due to interest rates being all the way to the stratosphere. However you all could've made out like bandits if you purchased one 6 to 8 months ago. That's when I first watched the video you made about renting and placing all your liquid cash in the stock market. Betting on stocks and crypto sure hasn't aged well has it. 😑

@stephandden

Жыл бұрын

We think someone who’s smart is able to see nuance in a conversation and look outside of their own personal situation. We are able to buy a house - we mention that in the video. And we mention at least 3 benefits to owning, too! However, buying isn’t better than renting 100% of the time - and the realities of buying should be discussed too (it doesn’t mean you can’t still buy after knowing the realities, either). Also, we invest in the market for the long-term (ie. retirement) - we wouldn’t call 6-8 months ‘aging poorly’ in that case. All this being said, we believe in home ownership overall and definitely plan to buy properties - but believe there’s more to the overall story and a lot to discuss with this topic. 😊

Lol.. 🤡 🌎