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Drawing Conclusions: Is renting really a waste of money?

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If you've ever wondered why some people think renting is better than owning, here's the explanation behind how that can be true.
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maulick thakkar (4 hours ago)
To rent out someone has to buy
Yorumcu Turk (12 hours ago)
Europeans and americans are so selfish. What about your kids? If you bought the house and completed the morgage payments, your kids will not need to pay any more rent or morgage. If you pay rent, your kids will pay rent for another 25 years and so on. To purchase the house is better option if you trust your job. If you are sure that you can find another job when you lost your current job. In London I wish to buy house in 2008 for the price 175K pound. Now the same house is 650K pound. I lost almost 500K pound.
Yu Zhang (1 day ago)
it's all under one condition: DON'T GET DIVORCED. 😂
telofown (1 day ago)
You are like a middle school math teacher... you invent math problems that you can solve while boring your audience to death. Buying a house has more value then a simple monetary value. You also don't realize that the majority of the population don't have portfolio's and don't invest, instead buying entertainment products. For the average person buying a house will give them a huge advantage because you can borrow against the value of the house. You can't do that with soft assets like portfolio's where you have to convert the value back to cash. When you rent your payment goes up every year by a certain percentage where as property value goes up and the home owner can borrow against the new homes value or sell for the inflated price. I could go on forever but I'll stop here.
Chase Van Krey (1 day ago)
Doesn't this video fail to account for the $5,500 limit on Roth IRA investments per year?
jp11mralfa (2 days ago)
I've been trying to buy a place for over 2 years now and I feel I'm chasing my own tail. I just realized that if I want my own independence I have to rent. As a 29 year old single man in Toronto, I was frustrated when I asked for a pre approval and the banks just laughed at me. Also as October 1st yes, I will be paying $2000 a month. That is waaaaay cheaper than paying a mortgage, which realistically speaking I won't pay for 25 years and stay in the same hole mortgage free
Jon Andary (3 days ago)
Most tenants don't usually have an exquisite stock portfolio, and a homeowner can also have stocks
Jas James (4 days ago)
Example is flawed. It uses a canadian average growth in value (see 5:50) of the house to a Toronto situation. Totally wrong.
bikephil (4 days ago)
I couldn't watch after I heard the way this dork said "borrow". LOLOLOL
jhwheuer (5 days ago)
Why did roger not invest the 35k in the beginning?
Tilen Fabe (5 days ago)
Larry Hudson in the comments is more than correct, I would even go much further than that, this video is a brainwashing BS in my opinion (even if unintentional), because why would you add only 20 years to that Larry? Where I come from, most people usually keep their property for many generations. Try adding Roger's children and grandchildren and great-grandchildren in the calculation, add another 70 or 100 years, and you will be amazed how much better off Owen's grandchildren, not to even mention great-grandchildren will be compared to Roger's - if they are smart enough to keep what they inherit. I know very well what I'm speaking about, I live in a house by the sea with my wife and my daughter, we payed = 0€ for the house and our rent is = 0€ monthly, all we have to pay is our monthly bills, and some regular mantainance which is no more than 1 average appartment monthly rent per year. The property tax I could easily cover by simply renting 1 bedroom during the 2 or 3 summer months to tourists whenever I wanted to - and not just cover it, I would earn considerably more than I would pay (I would do that every summer already if my wife wouldn't be against strangers in our home :D ). The house was built by my grandfather and my grandmother. My late grandfather told me something very wise: "Don't ever sell the ground you live on, if you don't want to become anyone's slave" Something I will surely pass on to my children. Maybe that formula can't be applied to an average american "cardboard" home that doesn't even last a whole generation very well, but if I compare my situation with some of my friends here, that were less lucky and didn't have smart ancestors (or had simply - less fortunate ancestors) and have to pay their rent every month to someone, I honestly feel sorry for them, they must work much harder, they must suffer their entire lives and do stuff they would never have to do if they were in my situation - and for what? Only to have a roof above their heads and not be homeless? Don't listen to this video people, it's wrong. Even if you must suffer your entire life, at least make sure your children won't have to, or don't you care about their freedom? Having a home isn't a luxury, it's essential for a decent life. Also, there is another point in the video that is completely wrong, If I wanted to move anywhere on this planet not just every 10 years, but let's say every 2 years if I really wanted to, there is absolutely no reason to sell my home and buy anotherone, because what is keeping me from renting it out to someone for two years, and to rent another one, even smaller and possibly cheaper anywhere if I wanted or needed to? I don't even consider the house as "mine" it's something that belongs to the family, I just borrowed it from my ancestors, and will pass it on to my children, that's how I believe people should see these things because it's essential, as essential as air and wather. And if you ask: "What will you do when/if you get a second child, and they decide to sell it and split the money?" I will say: "They won't have to, because my wife's grandparents were also wise enough to think about their children." I wonder why most people on the "new continent" only think 25 years ahead, didn't you notice your streets are completely filled with homeless people? It seems that your "hit the street at 18 and become a man/woman" logic isn't working out for you is it? But your private banks like that, they like that a lot.
MadHaggis (5 days ago)
Massive flaw. The rent goes up annually with inflation. The mortgage payments do not.
Jacek Kubiak (6 days ago)
Let somebody remind me what was one dollar worth 25 years ago?
Green Mustardgas (6 days ago)
Whatever. F*ck this. We all die no matter how much we try do everything `right`
nathan daniel (6 days ago)
2100 rent for a house that cost 500k. What landlord would do that.
Jean Carlos Rojas (6 days ago)
Best idea.. buy a house and rent it
I V (7 days ago)
Why then so many houses are sold by banks at auctions
Jt Wright (8 days ago)
this doesn't help americans. we don't have universal healthcare or university covered.
Trudi Trahan-upchan (8 days ago)
I would have been better to stick my $300,000.00 in the bank instead of putting it into real estate in Canada! Because the damn laws of secret filing allowed for our home and properties to be stolen without our even having the right to be notified. Now homeless and life savings gone fighting in court 4 years and still no way to get justice... Only province that has protection in law for registered owners is Saskatchewan. I should have there. I closed down my fight, too sick to keep fighting our government all by my self. www.rights4realestate.com
LUSCIOUS DUNCAN (8 days ago)
dude if you can afford two fucking grand to rent anything ever you probably already have a house like what the fuck do YOU KNOW WHAT RENT COSTS
Renting is not bad at all. The difference I believe is that if an individual doesn't have good capital to start with, his best route is to rent. But if an individual has good capital, is the contrary, is better to buy. Specially if it can be bought in cash. "Buying" like you said its literally renting for over 25 years. That's half a lifetime if lucky. That's a lot of time if you ask me. But many people don't have a choice because they're not rich. This is similar to car leasing or buying. The only and maybe huge downside of renting, is that you'll do it for all of your lifetime and will never own. But owning is pretty much a lifetime rent at the same time literally. In other words, rich people spend very low money and regular people spend way more money. Rich people everything is cheap and for poor or regular people everything is expensive. Of course there are way too many things to take into account when it comes to buying or renting a home which both can be good or bad. But I believe that for people that aren't rich renting could be a better route. And if you're rich, just buy in cash, plain and simple.
A mortgage is risky and dumb. Decades later you could loose everything. I bought land, slowly built the house properly, have water catchment, solar, and property taxes are only a couple hundred bucks a year! THis guy is helpless, institutionalized from being brainwashed in a college, and sure does seem to be nuts.
ina oliveira (8 days ago)
I didn't learn this is school because??
quartytypo (8 days ago)
Nice thing about renting is after a year you just get up and move. No banks. No real estate agents, no lawyers. No closing agents. No divorced spouse to consult.
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MikeKay1978 (9 days ago)
well the owner will always send the bills, like tax and insurance to the renter. Also the renter is missing out on the state subsidized upswing in house prices. so I don't know.
It still aint urs till ur done paying it off in 30yrs anyway... u finance a car u dint own it the bank does u buy a home u recieved a loan for it the bank owns it.etc etc .
Oedhel Setren (9 days ago)
My issue with this is it treats housing as a commodity to to be used for investing and not a basic human right.
No Joke Tyler (9 days ago)
Or another scenario, Rodger Rents the home he lives in, and owns a home in the form of a rental property. So he uses his 35k as 20% down on a rental property that starts cash flowing him, after 30 years he has a paid off house paid for by the tenants, and cash flowed on a monthly basis for 30 years.
Jazeapokergod A (10 days ago)
Depends what property tax rates are...
sportyp (10 days ago)
what is a portfolio in this situation?
Brendon Jones (11 days ago)
I don't think I know a home/condo owner that hasn't paid a significant reno/repair cost on their home in 25 years. That would eat into the 100K difference a bit. If your time is money then homes eat up a lot more time cleaning, painting, shovelling, mowing e.t.c. Renting also provides flexibility if you have to switch jobs or want to take risks in a career. It comes down to values not money.
Bosch (11 days ago)
I still looking a $500.000 us house paying $2100 us of rent Something is wrong
ht3oldnavy (11 days ago)
All this math would all look great if more people were able to afford a "HOUSE" let alone if banks would allow for more people to get loans. At the same time this economy we are in people are not getting paid enough to afford to rent with the rise in rent prices.
Family and Finance (11 days ago)
Very Thorough! Well Done!
PipeCleanerCrafts B (11 days ago)
how about buying a cheaper home?
Justin Tockey (12 days ago)
Rogers rent is way too low for a $500k house. Kick hat up and the trajectory changes immensely.
Wolverine FTW (12 days ago)
The single man seriously needs to spend $500,000 on a house? Wtf?
RANDINTMCR3U3 (2 days ago)
A 500 square feet condo is selling for $500 000 in Toronto (downtown).
Eduno Eduno (12 days ago)
alexa play desposito
John Campbell (12 days ago)
Another scenario for 25 years from now- While Owen and Roger are away at a family reunion, an Islamic terrorist let into Canada by Justin Trudeau in 2020 detonates a dirty bomb destroying their infidel neighbourhood. While Owen loses everything because his insurance company believes that “diversity is our strength” and refuses to compensate because it doesn’t recognize Islamic terrorism, Roger’s loses are minimal and he is able to emigrate to President Ivanka Trump’s America under a new policy granting asylum to refugees from failed previously- developed countries.
Marc Dufresne (12 days ago)
I watched a video from this guy who lived in Korea mentionning that your employer will pay the rent when you find work there and I found that relationship between the two pretty interesting. Which situation do you guys think this could be applied best (or at all)? Leave a comment; this way we could generate ideas about the subject. many thanks!! ex: I live in Kaslo Canada, and pay 500$ for a room.
David Howard (12 days ago)
Who in the right mind would rent out their house at a loss? Realistically roger the renter would be paying in excess of what owen the owner is paying in order to cover the landlords mortgage plus profit.
billy galipeault (13 days ago)
Who else thought of rick and morty when he said “two brothers”
Tom smith (13 days ago)
Owning your own home is the only sensible thing to do .Renting a home means you can be thrown out pretty much at any time .More importantly you never stop paying no matter how long you live there .Owning your own home means you eventually finish paying and you have something for your kids/grandkids to inherit .Also of course its an asset .No contest
AJ Bandido (13 days ago)
Okay i agree with most of this, but my question is does it apply to buying a double wide trailer home?
Stef Joseph-Kruyswijk (14 days ago)
There is own advantage that is overlooked with owning a house. When you own the house, you don't have to pay any mortgage and your monthly decreases significantly. When leaving the country, like explained in the example, Owen the owner can rent out his house and gain extra income. Exactly what the neighbors are doing. High rent here vs cheap life there.
ocsrc (14 days ago)
You would never get that house at that value for that rent. The rent would be closer to $5, 000 a month so the numbers on this Earth extremely skewed. And for the renter or the buyer they both would need to be making about $150, 000 a year before taxes for the bank to even consider giving them alone or four someone to rent to them at that price.
Thomas Akpikpe (14 days ago)
You are saying trash bro
Tom smith (13 days ago)
You are obviously a renter with a hugh chip on your shoulder Thomas Akpikpe
Mike Stanovich (14 days ago)
Owen meets Roger in a bar. They fall for each other and Roger moves in with Owen....LOL
Mike Stanovich (14 days ago)
Owen bought his house at the top of the market, then the bubble burst. and now his $500K house is only worth $350K and no one wants to buy it. Owen loses his job and now has to sell his house at a loss to move to another city to work. The factory in Owen's city closes and now everyone is selling their homes since they cannot pay the mortgages.
Hallelu Yah (15 days ago)
Not if you buy a house cash, then you rent renting anything...
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Better Built (15 days ago)
What if Owen the owner bought a trailer for 35,000 that’s paid off? What if Owen was a minimalist that live within his means? I think he would have more money and less stress, cheers!!
Brock Bickers (15 days ago)
Tyler Smith (15 days ago)
Rent out the basement of the house you buy. With the unreasonable cost of rent the people living in the basement will easily pay more than half the mortgage. They left out many options. And the cost to rent a comparable house will usually be more than the mortgage. I could go on but I wasted enough time watching this.
Jason Voorhees (15 days ago)
The Renter would have had to come up with an deposit.
wonderful bees (15 days ago)
one problem with Roger the renter, he does not know how much rents will rise. Ought to consider crazy increases in rent.
Steven David Stoffers (15 days ago)
a bigger one. we buy all kinds of nonsense but food stuffs have never been subsumed as 'currency' or 'money'. yes? and we have always had money, before paper money... gold backed paper money, gold and way back when we used seashells supposedly blah blah blah. money is a store of "value". if it doesn't even have utility to a medical doctor that you go to for services, unless you offer him or her food, or unless someone saved off some cylinders of cooking gas or bags of cement, the doctor won't even let you in his or her front door. 'enhanced Co2' food products will be the only object with any value to trade with.... and will be eaten by someone pretty quickly, very quickly. yet all of the recent 'enhanced Co2' studies ain't coming in very good for the "Climate Believers" who believe 'other people just don't care or are ignorant'. even the most promising of "Climate Believer" technologies, solar radiation management, has been coming up short lately. and Co2 has now been pushed totally aside as a GHG to worry about because CH4 on itself is something not even a real God could save us from. and everything except food is industrially produced, or requires industrially produced products, even access to clean drinking water and in the world as it is today..... no Jeb Klampet ain't ever gonna see Texas Tea just running out of the ground all by itself while he was a huntin' for some food.
Vijay Iyer (15 days ago)
I think monkey lives a better life than us 😂😂😂
Ludak021 (16 days ago)
if Owens house costs ~3100 per month for the running costs and credit, why would he rent it for less than that? Meaning, Roger could have never rented that kind of house for ~2100$/mo.
Global Family (16 days ago)
OK, why is the rent cheaper than the mortgage? If this were true, every landlord would take a loss.
Global Family (8 days ago)
You will not be able to rent a comparable house cheap enough to notice a big difference in savings. On Zillow, the rent estimate for my home is 300 more than my mortgage. So are you telling me you can rent a home cheaper and earn more on interest DESPITE building equity and avoiding rent hikes?
boaz appelbaum (11 days ago)
The thing is that renters can save more money and invest it. If their investments grow faster than a houses value, they win in the end. Landlords are not taking a loss, but real estate might not be a very profitable business. The rates of return might be lower than in other industries, where you could invest *if you rented and had disposable income*
Charles Balliet (16 days ago)
lol who has renters ot title insurance this is bogus info. people don't even have health insurance
Charles Balliet (16 days ago)
you also forgot the renter has to pay 2100 in dammage deposit along with paying last months rent up front for a total deduction month 1 of $6300
glasslinger (16 days ago)
If you live in a (trump's comment) country, you can't do very well. I live in the USA! I bought my house at 23 years old for $17000. I paid it off in 12 years. Now I am 73 and living in my house which has the lowest tax rate in the neighborhood due to the maximum per year property tax increase allowed. I was offered $625000 for the property last year. Rodger renter couldn't TOUCH a house in my (now upper class) neighborhood for under 500 grand. And if he did manage to buy it, he would be paying the full property tax value of the house because it is reset to the sale price when the property sells! Buying my house was undoubtedly the best move I ever made! But who ever knows where they will want to live 50 years from now!
K T Mal (16 days ago)
You should NOT get mortgage insurance!!!! its a rip off that banks pull on people. just get House and Live insurance. NOT mortgage!
David Cowen (16 days ago)
This is a total work of BS. It's all Theory and has no practical value. Two people making the same amount of money one owning and one renting a house is ridiculous. I don't even want to go into it further cuz it's just so stupid I can't even believe the Globe and Mail would publish such a stupid video. Renters such as myself are stuck in our Apartments ore rentals because if we go anywhere else to try and get a place we just can't afford it. There's not many people actually I don't know any people that have money to buy a house and decide to rent it's absolutely ludicrous. Ask for Toronto I know a few people that work in Toronto or the GTA and commute from London. These jobs are usually firefighters nurses the type of job where you're on for a bunch of hours and you're off. Especially firefighters who have their room and board paid for when they're at work actually they're getting paid to sleep and to be at the firehouse and they're paid a lot of money then they come back to London where housing prices aren't cheap but are a lot more affordable than Toronto. I'm kind of at a loss at what the point of this is is it trying to make poor renters feel better about their crappy situations. To feel hopeful when we're suffering. I just have to laugh. One thing about renters I do not like are those who rent an apartment and choose to buy an expensive car the logic behind that... There is no logic behind that it's just stupid
Karin Maaka (17 days ago)
Big brain: living with your parents and renting out property
Europa Man (17 days ago)
Commute distance is important. Many choose a house for less further away . Driving costs about $0.50/mile on average. A 50-mile car commute to work equates to 2000 miles per month or $1000/month. That's 24,000 miles/year and $12,000/year.
Europa Man (14 days ago)
Johnny wrote "I drive 40 miles each way, 2000 miles per month, but my gas costs about 2-300 a month" $0.50 is the average cost of operation for a common car, including gas. The IRS lets you deduct this $0.545 per mile of business operation of your vehicle. https://newsroom.aaa.com/tag/driving-cost-per-mile/ License and registration costs are independent of commute distance, so I should lower my estimate to $0.40 when comparing commutes. But risk of accident and insurance cost increases with commute distance. The more you drive a car, the sooner you need to replace it. 2000 miles/month means you drive 24,000 miles/year. Do you spend $30,000 (including taxes) on a car for every 100,000 ($0.30/mile) or 200,000 ($0.15/mile) miles driven? For your distance, I would guess $300 in oil changes 4x / year and $600 tires every two years. Do you have car repairs over the life of the car ? Assuming 30 MPG and $3/gallon, you spend $200/month or $0.10/mile for commute gas. On average, it adds up to $0.50/mile. "And not for nothing, the renters will have the same commute." Renters have more flexibility to move closer to their employer as reduce the impediment to move to a higher paying job. Do you think you can find a place to rent closer to your work for $1000 more and save your commute time ? Usually, the same class of house in a good school district rents for less than the cost of ownership. Most people trade greater commute distance for a lower house price or a bigger house. They could save the commute time and money and buy a smaller house for the same price closer to work. They could buy the same size house by putting money into their house instead of their car.
Johnny Huffington (14 days ago)
How do you get that costing $1000 a month? I drive 40 miles each way, 2000 miles per month, but my gas costs about 2-300 a month. Where do you get the 7-800 more a month in cost? And not for nothing, the renters will have the same commute.
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Nadia P (17 days ago)
A house in Toronto for $500,000??? Lmfao that’s cute
Brian (17 days ago)
Depends too on which one gives a shit what the final score is after 25 years. What if the home owner is married to fat nag, who divorces him and he has to pay alimony and child support. What if Roger the Renter keeps fit, never gets married. What if both live exemplary lives and dont care about the financial difference between them, realizing it's not really a competition and dont care what other's think.
Brian (14 days ago)
+Virginia - Ginger Loy what?
Johnny Huffington (14 days ago)
The issue is all things being equal. Good Lord, stop making up BS hypotheticals, they are irrelevant to the example. Its showing you how YOU would make more money owning than renting.
Virginia - Ginger Loy (15 days ago)
Fat nag over here, also depends on what you ex-wife was saving in an investment account before the divorce. If you weren't such a dick, maybe you would share in all the money instead of just the half.
Gabriel Graur (17 days ago)
Depends on the country, the city, the neighborhood... in 2008 my family bought an apartament with a mortgage of 105 K Euros. In 2010 (or so they said, there was the economical crysis , here in Italy (Torino) ) . Starting with 2010 , an apartament of same type , pretty much the same apartment in another building costs half. If you're not picky , you can get one with even less (as an example in a building with no elevator , at 3d flood ) 10 years passed, my family still owns 75 K (beacause the first 5 years it's like 80% bank interests and 20% part of the loan) but because the apartament value now is around 45-50 K , they cannot sell and buy another , they will not have enough to close the loan .Not to mention all the repairs and stuffs the administration do .. every year they have to do something, to repair something even if it doesn't need repairing. Oh the walls are a bit dirty.. we need to wash them with an anti-graffiti substance. only 100€ / family. Administration fees : around 1000 €/ year which means elevator, electricity on the building stairs , the cleaning company which cleans the stairs 2 times a week and of course the administrator. 1000€ + 100€ for the anti-graffiti + 250 for roof repairing .. + 150€ for the central heating system maintenance... besides that , the electricity bills, gas bills, internet, phone and other utilities... hey! the wages here are arround 1200-1300 € / month unless you are a lawyer or doctor or some type of College teacher.. . !
Pepsi Me (17 days ago)
Good analysis but the variables are key here. I don't think anyone claims renting is a TOTAL waste, only that it is. First of all, let's say you have no mortgage. Many baby boomers are in that situation only because they bought rather than rent. Another thing is, rents will invariably follow real estate prices so relying on inflation based rent increases is foolhardy unless you commit to staying in the same rental. Even then, the landlord can make life unpleasant for you or simply go out of business your rent doesn't cover his costs+profit. Yes, housing can crash but so can the stock market. When housing crashes you will still have your living room but When Apple crashes you will be left with nothing :)
mcavity (17 days ago)
wow "owen" is an idiot..1!. Buy way more house than he can afford. He should be look at the 250k houses. 2 get a 5 year mortgage? not a 15 year or 30 year? This is so very wrong.
Criticality (17 days ago)
Moving, job loss, career change, divorce, re-marriage, kids move out of the house and you have unused capacity, robots take over the economy and money is abolished. He didn't cover the cost of maintenance upkeep, home improvements, mowing the law, shoveling snow, landscaping, neighbors telling you your RV is an "eyesore", calling the SPCA when your animal is outside for more than an hour, etc. The added cost of an apartment is risk management. If you don't see yourself living in that area in 5 - 7 years, don't buy the house.
Wu Hong (17 days ago)
but when you retire, the extra house is incoming stream
dogsquat1 (17 days ago)
if you cant swing a hammer rent
dogsquat1 (17 days ago)
i bought a fixer upper for 25,000 . gutted the house. everything new i did the labor. i had someone living upstair. free rent free to help me .it took 1yr.total 35,000 paid off in 10 yrs. my home is worth 50k now. to buy 500k home is insane.
Chris Ng (18 days ago)
Buy a house, rent it out, and rent a cheaper house
Mr Unique74 (18 days ago)
Rent: Landord - Ownership: IRS and maintenance is the Landlord
Sasja Parson (18 days ago)
Owning is a risk like any other transactions, u are obligated to put up every month if u don't u will get evicted😏. Let it be clear that u are signing a byers contract that says u liable, to pay for everything that's default at that house. And you're obligated to upfront at least 10000 ur more to get a mortgage.
Andrew C. (18 days ago)
People it's all Monopoly the game you played as a Kid thats how you get rich!
bikesbeersnbeats! (18 days ago)
The quality of life for a renter is far below that of a home owner. The home I own I could never afford to rent and I got tired of living in the dated apartments with neighbors that changed every few months and not having access to a garage.
Stephen Shaw (18 days ago)
This is a great example, but fails to mention the critical nature of the Purchase to Rent ratio. In the USA, for example, in San Francisco, the average home price is $550,000 for a $1000/month rental (who would EVER buy here without extreme money to waste????), while in Cleveland Ohio the average price for the same $1000/month rental is $126,000. I hope that the author is genuine when he gives a $500,000:$2100 ratio in Toronto -- if this is true, the math absolutely works out. I live in Cleveland, where it's not that smart to rent if you can afford a house. In San Fran, I wouldnt ever buy. And yeah, the tax benefits of ownership in the USA are a large factor (interest and taxes deductable). Lastly, paying PMI adjusts the math to enough of a degree that every buyer should be careful. That is just sunk cost, and if you can't afford 20% down, really sit and do the math in YOUR city.
Travis George (18 days ago)
His mortgage was 5 years not 25 wtf?
Du Kirpalani (18 days ago)
Roger the Renter is dressed wayyyy better than Owen
Katie Kaboom (18 days ago)
Thank you. Going to show my mom this as my brother has really been on her case on how her renting is a waste of money after my parents split and he kept the house.
Terry Sham (19 days ago)
The idea for renting is to offset your travel time, maintenance / repairs, security, distance and overall lifestyle. E.g if I'm renting next door to Owen purely for the reason to stay closer together, then the idea of renting is false from the start.
LAURA LOPEZ (19 days ago)
I wasted 5 minutes of my life
jimmicrackhead12 (19 days ago)
Owens white and rogers black so how can be brothers? Or you mean brother as in the black meaning?
OneTwoPlay Witty (19 days ago)
PROPAGANDA ... I took the time to debunk this ... but really .... just move on with your life unless you are interested. 500K house in Canada? ... That is the average price not the median price. For example ... if there were 1 Million dollar house for every 10 250K houses 3.5 mil/11 = 318k which none of them cost ... average price? you can surmise 500K is not a number he should be using. The median price is just south of 200K. The monthly rent for a one-bedroom condominium in the downtown area of your average city in Canada is near CAD $907 so 2100 for a 500K house is extremely unrealistic. The rest of the video skews ALOT and still doesn't make the case for renting if you have the funds to own. After the 25 year mortgage is over, he tallies up there and ignores what happens in the following years when the owner pays no mortgage ... in fact he says the guy leaves the country ... LMAO. If you listen closely it's probably because they get tax raped like an effeminate prisoner. More than 9% of all Canadian citizens live outside of Canada. Citizens born in Canada make up about 58% of the diaspora, the other 42% being people born outside Canada who became naturalized as Canadian citizens and then moved out again, often back to their country of origin, or sometimes to a third country. Nearly 1 in 10 ... what are they running from? Mortgage default insurance is front ended and then added to the mortgage ... LMAO that is insane ... because you might default on the loan, they make it even larger? AND they tax the insurance? or you fing kidding me. $1197 dollars of tax applied due to a frontended Insurance policy? You guys are not getting rapped, you are getting gang banged and told to like it. In the US you don't pay mortgage insurance after you have 20% equity. If your down payment is 20% you don't pay it at all ... much less pay a tax on it. A 250K home in my area is 1.5 -1.8K a month for rent ... at 450K home is 2.7-3k. After 25 years ... say you started at 25 ... @ 50 years old you would have +2300 a month The housing growth rate at 3.5% already took inflation (1.89% average over the last 10 years) into consideration ... It's 5.4% for existing homes (I looked it up). Since median home size is growing they use median price which is wrong ... Existing price should be use ... because it is existing for 25 years. OK i gotta stop ... and call this propaganda ... I went back to the top and labeled it as such.
Matt Springate (19 days ago)
a few important things you're missing in favor of a renter. 1) A renter can move as they wish without the sales process, and fees, of selling. 2) If someone can afford a $500k home, typically they would have a decent job and likely continue to progress in their career which would very likely have them move locations every 4-5 years, not once every 10 years. This would significantly eat into their final net worth. 3) You assume, based on the research, the final value of the home. In 25 years, many things in one given city can change drastically, let alone an economy. The house could very well be worth as much at that time as it is today, or worse. 4) If you do live in a home for 10 years, or 25 years, the costs of maintaining the house will be far greater than what you budgeted. Often times if you're living in a $500k home, you also may have HOA dues of $1000-3000/year.
Tagträumerin (20 days ago)
0:55 everyone who has read rich dad poor dad: '_this is a liability! _'
Alex Duque (20 days ago)
Roger the renter pays 2,100 dollars per month for renting the house, and Owen the owner 3,220 dollars per month for renting a similar house. This assumption is nonsense. Normally rents are more than the monthly mortgage payments, sometimes even twice the amount... A more accurate assumption would have been roger the renter paying 3,500 dollars per month for renting.
Geoffrey Kirwan (14 days ago)
There is simply no asset class on the planet - real estate, stocks, gold, whatever - where it's value moves only in one direction. What your math ignores, for instance, is that the downpayment for a house can be put to good use as well, and most people don't include opportunity costs in their calculations. In either case, I don't like absolute rules - renting is not always bad, property ownership is not always good, and no asset class always moves in one direction.
Johnny Huffington (14 days ago)
Home values do always go up unless you live in a dilapidated neighborhood or there is a market crash like in 2008. Inflation alone will have it go up around 3-5% a year. Not trying to argue or nitpick, but this video was about renting not being totally a waste of money, which I disagree with. Its not a waste of money only if you count saving your own money on the side, but being that at the least, mortgage and property tax payments are usually the same as rent, the owner is also saving money on the side. Renting is a losing proposition, it is only good for temporary housing, or if your credit is just so bad you cant get a mortgage, or you dont have enough for a down payment.
Geoffrey Kirwan (15 days ago)
They're only earning equity if the value of the home continues to rise. I think the main point of the article is that renting is not necessarily inferior as a means of wealth generation compared to owning. Also the new normal might be very different from the old normal. I do live in Toronto and seeing people pay $1.5M for a house that 10 years ago cost $450K seems insane to me.
Johnny Huffington (15 days ago)
Nothing to explain. They arent losing money, they are still earning equity every month with every payment, even if they supply 10% of that mortgage payment. Regardless. what Alex stated still holds true... he said rent will NORMALLY be higher than a mortgage payment. Do you really see people paying $2100 a month rent for a $500k home?
inkey2 (16 days ago)
well geoff. I explain it by saying I do not live in Toronto (or Canada). Ever heard the old saying in real estate.....location location location. My unit has increased 400% in price over 20 years. If I had not bought when I did I would have never been able to afford to buy my same unit now.
Adamantium Scorpion (20 days ago)
Yes. When I/We were renting I/We would guess that I/We (My wife and I) could have payed off about 45% of my house with the money I/we flushed I rent.
Europa Man (20 days ago)
Let's analyze from a wife's point of view. She's renting at $1200/month. After marriage, she lives rent-free and can get an easier job or no job at all. Women win !
Europa Man (20 days ago)
House "ownership" is a forced savings plan. In this case, the house isn't expensive compared to rent.
humanyoda (20 days ago)
Owning a property usually means spending on repairs. And in the USA, there are also property taxes that could easily be thousands per year.
Johnny Huffington (14 days ago)
You are paying for the repairs and property taxes as well. Its all rolled up into the rent. Landlords are covering their costs. Unless the market crashed and they are way under water or they outright own the home, landlords will charge enough rent to cover mortgage, insurance, property taxes and maintenance, or at least close to it.
Nazmin684 (20 days ago)
Huge point missed, rent go up
Nazmin684 (19 days ago)
+OneTwoPlay Witty I missed that, ty
OneTwoPlay Witty (19 days ago)
He states @4:44 rent goes up. "let's assume rent goes up at the rate of inflation." (Really bad assumption ... historically it leads inflation and is closer to "existing home equity growth rate" except maybe in the 70's when inflation went off the deep end and rental rates increased less due to average mortgage rates already locked in.) But how he gets to the final number is beyond me.
Omar SM (20 days ago)
What if you don't pay a mortgage and buy the house up front?
ZeeZee Zputnik (20 days ago)
Can't afford a deposit on a mortgage because most of my money goes into my rent. So I'm stuck.

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