Renting Vs. Buying - MONEY MATTERS- Nolan Kraemer by Nolan Kraemer

nolankraemer2 — 2024-11-20 00:58:08 UTC

Here you will be learning about buying vs renting a home in Canada. The rates of renting and buying will be assessed. The differences of each payment plan will be stated. Benefits of both and when either option is superior, depending on the circumstance of the person.

Website #1 Renting Vs. Buying

nolankraemer2 — 2024-11-20 01:07:12 UTC

The subject of purchasing and renting a home is covered on this page. It provides some information about how you might choose the best option for your financial circumstances. The website could assist the reader in making the best decision for them in a few of these ways. The first question on the page asks where you would like to live. The purpose of this inquiry is to help the reader understand why mortgages are significantly more expensive in "hot" cities like Toronto and Vancouver. A tool that determines when your property purchase breaks even is also integrated into the website. The mortgage and household expenses you enter into the calculator are used to compute this.

I chose this website in particular because it has a very unique and useful advanced calculator that can help a home buyer greatly with choosing their decision in renting or buying. Something this website had that I found useful was learning about the 40% rule. This rule means that you should be able to meet your housing costs (principal and interest, taxes, and heat), as well as your other registered debts (such as car loans and credit cards), with no more than 40% of your gross income.

nolankraemer2 — 2024-11-20 16:26:36 UTC

This website provides information on renting and buying, but it primarily focuses on the benefits and downsides of owning a home. It discusses how owning a house builds equity, how homes typically go up in value, which leads to most homes being a good investment, and how homeowners have much more stability than renters. For many reasons, such as having no chance a landlord cannot evict you. This website brought to my attention how much financial security and control you have when you make the choice to buy a house. Having a more predictable, stable fixed-rate mortgage. Along with being able to control how you want your house to look and being able to decorate however the homeowner desires.

The website chosen worked well for me to include in this assignment, because it had a lot of strong points whilst leaning towards the perks of buying a house. There was more information on why it is so good to own rather than rent. It helped me understand the buyers prespective better.

nolankraemer2 — 2024-11-20 20:06:13 UTC

The site above dives deeper than most websites I have read leaning more towards the side of pro renting. Most paragraphs begin with a commonly asked question about renting and the text goes into deep explanations of why the answer given to the questions is factual. The text explains how for the people who love the big city life and have enough money to just afford housing in a big city it is always cheaper to rent if you prefer the big city. A strong benefit of renting I have not seen talked about anywhere else but this website is how when buying is cheaper it tends to be on average 20-30 minutes away from the city at least. This creates a farther distance for a lot of jobs because living in the city gives quicker access to travel to one's job.

One of the reasons I chose this website over others was because it had more detailed information on specifically the benefits of renting. Since most websites just compare the both of them but are more broad this website narrowed in more on the renting aspect. An example of something this website showed me was a quote. "The comparison is often made between renting a home and owning a home. But we often forget the other comparison of renting a home versus not having one at all". This outside-of-the-box quote really puts in perspective the fact renting and buying depends most on the buyer's situation and if they can only afford to rent then there is no need to look into housing.

nolankraemer2 — 2024-11-20 20:18:22 UTC

The video above mentions the cost of living crisis in Canada, including the inflation of gas, grocery, and houses. Housing costs have risen over 40% in the past 5 years due to high interest rates, leading to record-high rent prices in multiple Canadian cities. Cost comparisons are included and made on a spreadsheet throughout the video. Renting currently shows lower sunk costs compared to owning for an average home, even with an increased rent of $2,800/month. Some of the sunk costs mentioned and comapered are; Mortgage interest (~60-70% of payment in the early years), Maintenance (~0.5% of home value annually), Home insurance and property taxes, and Closing costs spread over five years.

Somthing special I found in this video that was different than other renting vs buying videos was the credit card that was promoted. The credit card is called "Chexi" part of the brand Chexi Service. This service is a card that enables renters to pay rent via credit card, earning more rewards and cashback. it charges a 1.75% fee but can still be worthwhile because it is such a high-reward credit card. This can also make renting a lot cheaper.

nolankraemer2 — 2024-11-20 22:39:10 UTC

The video challenges the traditional notion that buying a home is always the smarter financial move. It compares the costs and benefits of renting and owning, highlighting that renting often costs less in the short term while buying can build wealth over time through equity and appreciation. This video also isn't particularly biased because after every fact given the counter-argument is mentioned. An example of a fact is that buying a home today requires more income than ever before. Lastly, the debate of flexibility vs stability is talked about. Renting offers flexibility and less financial risk. Renters avoid the costs of repairs and can move more easily. However, Homeownership provides stability, control over the property, and freedom from landlord-related uncertainties (e.g., rent increases or eviction).

One thing I found different about this video compared to a few others is that it elaborated on the history of the housing market patterns and what will most likely happen to your home over 10 years. I learned since housing has always been going up steadily every 10 years there is still a fluctuation in the market to look out for. This is helpful for someone who wants to buy a home. The market tends to have constant up and downs but still is slowly moving up in the long run.

nolankraemer2 — 2024-11-21 14:42:36 UTC

The video examines whether renting or buying is the better financial decision. Some “apples-to-apples” comparisons are made throughout the video. Renting involves straightforward costs, while owning brings property taxes, maintenance, and the cost of capital (down payment opportunity cost and interest). A quick rule estimates homeownership costs as 8.71% of the home's value annually, allowing monthly comparisons to rent. This YouTube video was also made because there was a similar one linked in the description on the “5% rule” but this was 5 years ago, and home prices have increased since then. So this video was made. However, ownership comes with equity-building benefits and tax advantages, while renting offers flexibility and lower initial commitments. The best choice depends on individual circumstances, financial discipline, and long-term goals.

This video stood out to me because I saw no other video like it with an 8.71% rule. It caught my eye and I immediately wanted to know what this rule was. After watching the video I agree with the rule and think it is very clever. Another thing that this video provided that others did not was similar to one of the websites I have found. The video has a home cost calculator made on a spreadsheet by the creator of the video. This is a handy tool that definitely helps buyers in the market for a home.

nolankraemer2 — 2024-11-22 15:22:45 UTC

This website discusses falling mortgage rates and relaxing real estate prices in many locations, the average income required to buy a home in Canada is still falling. The income criteria for homebuyers decreased further in October in most cities, including Vancouver, Toronto, and Hamilton, where they dropped by more than $4,000, according to Ratehub.ca. For Canadians, this is very beneficial when buying a home, especially for younger first-home buyers like myself. The largest decreases in necessary incomes were observed in Vancouver and Toronto, which were ascribed to stable pricing in spite of more sales activity and better affordability as a result of recent interest rate reductions. The only city where income requirements went higher was Fredericton, where they went up $1,890 as a result of an average home price increase of $16,100.

This site stood out to me because most information that came up searching up my topic were all sites proving how renting is mostly the better option and a constant comparrison of rates. This website taught me that the income needed to buy a home has went slightly down. This is good news and I hope to see more changes in this direction moving forward. This website also stood out because it had a chart listing how much each province in Canada went down for arverage home prices.

nolankraemer2 — 2024-11-22 15:30:32 UTC

This graphic expresses how buying and renting can be seen as equally bennifical. This is because it depends the buyers life situation to be able to tell what the better option is. Renting is better for people that are thinking of moving within the next 5 years of renting and Buying is better for someone who is thinking of not moving for a long time. Renting also comes with less mainteance on the house because the landlord would have to worry about that. But for buying every repair or fix is on the owner. Each option has pros and cons.

nolankraemer2 — 2024-11-22 15:33:30 UTC

This graphic expresses how it can feel fighting and searching for which is the better answer in your life. Renting or buying? I see it as a woman fighting the taditional notion that buying is always better but still trying to see both sides.

nolankraemer2 — 2024-11-22 16:16:16 UTC

What did you learn about the topic that most supprised you?

This topic surprised me that renting turns out to be a lot better than I originally thought. Traditionally buying seemed to always be the better option but after watching the videos especially it opened my eyes to how especially at my point in my life renting is always the better option.

Provide a real-life example of how this topic is relevant or intresting for you?

This topic is extremely relevant to me because I expect to live away from my parents within the next five years. The information I learned on renting vs. buying really helps me make my own decision.

If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on?

I would share with my friends and younger brother the 8.71% rule. This rule estimates homeownership costs as 8.71% of the home's value annually. This rule can help my friends and brother easier monthly comparisons whole renting. I chose my friends and brother to share this with because their first home would most likely be rented.

nolankraemer2 — 2024-11-22 20:35:05 UTC

This video was made a few months prior to the average housing costs in Vancouver and Toronto going down. It still elaborates on the housing market and explains a lot of why renting for the most part is so superior. This is explained by marketing dynamics such as home prices doubling in the last decade and wages only rose 24%. The average property requires a household income of $180,000, far above the national median of $121,000. The housing crisis in Canada, which is caused by a complicated interaction between high demand, restricted supply, speculative investments, and rising interest rates, is highlighted in the video. Major risks in the market and severe financial strain on households have resulted from this. As a result, renting seems to be the answer mainly because groups of people are becoming unable to afford to buy a house.

I felt it was important the Canadian housing crisis was mentioned. This housing crisis has a huge impact on whether renting or buying is the better option. I chose this video specifically because it highlighted all the major issues with statistics to back it up. This is the "why" in terms of buying being the most expensive it ever has.