https://padlet.com/briannacussoncustomdesserts/wc4hd2e0pd4alfd8 Group Project: Brianna Cusson, Rilee Logan, Kiera Morgulis en-us 2021-03-15 20:54:39 UTC 2021-03-30 01:16:37 UTC hello@padlet.com https://padlet.net/icons/png/1f3e1.png briannacussoncustomdesserts https://padlet.com/briannacussoncustomdesserts/wc4hd2e0pd4alfd8/wish/1312812921 Welcome! This wall will be used to provide some important information and other important things to keep in mind when deciding whether to rent or buy a house. On this wall, you will find three videos, 4 websites, and two pictures. These sources will provide the pros and cons of renting and buying a home. ]]> 2021-03-15 20:56:09 UTC https://padlet.com/briannacussoncustomdesserts/wc4hd2e0pd4alfd8/wish/1312812921 briannacussoncustomdesserts https://padlet.com/briannacussoncustomdesserts/wc4hd2e0pd4alfd8/wish/1312819507 Description:
This video is a CBC News segment talks about a shift in belief that states renting a home and investing your money is a better option than buying a home. This is different than the normal mindset; most people do believe that owning is superior to renting. It's explained here that investing your money rather than putting it all into real estate can be more reliable and make you more over time. A finance professor teaches his students to challenge the normal beliefs and think about the extra costs with homebuying that people don't talk about, such as interest almost doubling the end cost of a home, and maintenance costs. It does, however, talk about a different topic which is the emotional attachment aspect of buying a home. They say that while buying a home may lose you money, it gives a sense of fulfillment and security, knowing that you own your home. This makes a good case for situational decision-making. For example, someone may be financially able to buy a home, but may decide for themselves that renting and investing is a better option. Another person can decide that even though they could make more money by renting/investing, they would rather have that sense of security by buying their home instead.

The most important takeaway from this video is that a case can be made for either situation, whether it be renting or buying. The decision doesn't (and shouldn't) rely only on financial reasons. Some people feel more comfortable continuing to rent because of the safety of not having to pay for surprise maintenance like a water leak or broken appliance. On the other hand, some people may feel that it is much more worth it to have a sense of accomplishment and security that they have bought a home.]]> 2021-03-15 20:58:27 UTC https://padlet.com/briannacussoncustomdesserts/wc4hd2e0pd4alfd8/wish/1312819507 briannacussoncustomdesserts https://padlet.com/briannacussoncustomdesserts/wc4hd2e0pd4alfd8/wish/1312819839 Description:
This video depicts a Canadian Accountant/Real Estate Agent breaking down the costs of renting vs. owning a house in Canada. For renting, he states that if you find a home where rent includes utilities such as electricity, water, heat, etc. then the only costs involved would be your rent payment and tenant insurance. For owning a home, obviously, there are a lot more costs to consider. He includes the costs of down payment, monthly mortgage payment, mortgage insurance, lawyer & closing costs, home insurance, property tax, and the cost of maintenance. He takes all of these costs and calculates what value you're left with after 30 years (the average time of a mortgage term). He does this by "assuming" that instead of buying, you would take the money that would have gone towards a down payment, and invested it instead while you were renting. He calculated the money a person would be left with after either investing that money, or selling the house they bought and lived in for 30 years, and found that buying would earn you over $250,000 more during that time frame.

I chose this video because it takes a different viewpoint than most. Rather than looking at which option costs more, it looks at which option earns more over time. One piece of information that I really took away from this video is that even if I were to invest all of my leftover money while renting, I still wouldn't earn nearly as much as I would by buying a home, living in it for 30 years, and then selling it. That gives someone a lot to consider!]]> 2021-03-15 20:58:35 UTC https://padlet.com/briannacussoncustomdesserts/wc4hd2e0pd4alfd8/wish/1312819839 briannacussoncustomdesserts https://padlet.com/briannacussoncustomdesserts/wc4hd2e0pd4alfd8/wish/1312820122 Description:
This video explores whether renting is actually a waste of money, the way most people argue that it is. Many people will ask about why renters are paying their landlord's mortgage when they could pay their own instead. The narrator of this video explains that while renting, you're not actually throwing your money away. You're exchanging money, and in return, gaining space to live in. He states that when buying a house, you're technically still renting. Instead of renting space, you're renting money (mortgage) to buy a space. He calculates using two similar people who start with the same net worth of $35,000, and follows them with calculations over the course of 25 years with one person renting, and one person owning. He finds that at the end of the 25 years, while the renter has a net worth of about $100,000 less than the owner, he still has grown his net worth by $500,000 by being disciplined and investing the money he saved by deciding not to buy a house. 

I think the most important takeaway from this video is that renting is not necessarily a waste of money. It largely depends on each individual's situation and financial decisions. If someone who is renting can be diligent about saving/investing their money, they can still earn a significant amount over time.]]> 2021-03-15 20:58:41 UTC https://padlet.com/briannacussoncustomdesserts/wc4hd2e0pd4alfd8/wish/1312820122 briannacussoncustomdesserts https://padlet.com/briannacussoncustomdesserts/wc4hd2e0pd4alfd8/wish/1312820460 Description: 
This video explains important reasons buying a house in 2021 may not be the best decision. It's important to look at buying vs. renting not only as a whole, but as part of our current situation, living through a global pandemic that has affected our housing market greatly. The reasons listed include that this year may include a housing bubble, bringing demand up incredibly high which then causes prices to skyrocket. Buying a house during a housing bubble is risky because if the bubble pops a few months after you buy, your house value will drop significantly and you will have essentially "lost" part of the insanely high amount you paid. Another reason is that foreclosures are at higher risk because of the pandemic. Jobs are not secure right now, meaning if there is another large lockdown situation, the market may drop significantly and people may not be able to keep up with their mortgages, resulting in foreclosure and eviction. The third reason is that renting is cheaper than buying, which is an important factor during a pandemic when job loss is very probable. 

The best takeaway from this video is that situations should always be taken into account when choosing whether to buy or rent a house. With the situation we are currently living in, it is likely going to be very hard for many people to make the leap and buy a home, making renting the better option for lots of people at this time.]]> 2021-03-15 20:58:49 UTC https://padlet.com/briannacussoncustomdesserts/wc4hd2e0pd4alfd8/wish/1312820460 briannacussoncustomdesserts https://padlet.com/briannacussoncustomdesserts/wc4hd2e0pd4alfd8/wish/1312824592 Description:
This article provides important factors that may influence someone to buy or rent. The first subtitle in it is "What's Your Time Horizon?" in this paragraph the author talks about different factors that may influence someone to purchase a house rather than rent. It states that the general rule is the longer you plan to live in an area or plan for a long period of time it becomes more favorable to purchase a home than rent. They also mention that when deciding to purchase a house you need to think about your lifestyle choices that are current and in the future (if you want kids, what schools are in the area, etc.). The article then goes on to talk about taking a closer look at your financial standing and how if you purchase a house you will need to pay a mortgage, utilities, home insurance, property taxes, and repairs. If you are renting you will still have to pay for these, but they will be slightly cheaper than if you were to purchase a house.  The last topic that the author brings up is location. When deciding on whether you want to purchase or rent a house it is important to consider the location of the house and the location of where you are looking for. For example, if you are looking for a house in downtown Toronto it may be better to rent. 

I chose to include this article since I thought that it offers valid points about renting and buy. I personally would rather buy than rent and even with that mindset I still have not looked at all the pros to owning your own house. I have always just thought that it's my space and I own it. This article really made me start and think about how even though I want to buy a house it might not be the right time for me to do so, since I don't know where I will end up with my career. I think that this article has provided many great details and offers great value to those trying to decide on whether they should rent or buy. ]]> 2021-03-15 21:00:27 UTC https://padlet.com/briannacussoncustomdesserts/wc4hd2e0pd4alfd8/wish/1312824592 briannacussoncustomdesserts https://padlet.com/briannacussoncustomdesserts/wc4hd2e0pd4alfd8/wish/1312825143 Description:
The article "Rent vs. Buy Debate in the Current Canadian Housing Market" talks about the pros and cons of a buy or renting a house, to try and persuade its readers into finding the best option possible for them. The market in Canada has been changing lots over the past couple of months making it harder for Canadians to purchase a home and making people turn to other options. This article lays out the benefits of owning your own home and the benefits of renting. This article really breaks down what you should plan to expect from either renting or purchasing a house. Some of the benefits to owning a house are you build equity, it's a good investment, stability, and more privacy. The downsides to owning your own house are that it's a commitment, ongoing maintenance cost, mortgage payments, ROI can be slow, and less disposable income. Potential benefits to renting are its cheaper, flexibility, little to no maintenance, and financial freedom. The downfalls to renting are you're not building equity, you have a landlord, and it is unstable. It also provides many more great details such as when to rent and when to buy, which is better, and much more important information. 
This article has provided many benefits and cons to both renting and buying a house. I wanted to add this article to this wall since it does not state which is better to rent or to purchase. I like this since it really lays out what the benefits, cons, when to, how-to, and much more important information that can be very useful to someone who is deciding whether to rent or purchase a house.
 My favourite part about this article is that it breaks down the cost of ownership. There is a subtitle in the article called "How Much Does Home Ownership Cost?" This subtitle breaks down the down payments, closing costs, insurance, and maintenance. This is a really great thing to show first-time homebuyers since it gives them a bit of insight into other costs/fees they might have just to purchase a home. ]]> 2021-03-15 21:00:40 UTC https://padlet.com/briannacussoncustomdesserts/wc4hd2e0pd4alfd8/wish/1312825143 briannacussoncustomdesserts https://padlet.com/briannacussoncustomdesserts/wc4hd2e0pd4alfd8/wish/1312828780 Description:
This article in the Financial Post explains that there are pros to both renting and buying. However, it states that according to a report by The National Bank of Canada, buyers are undeniably more wealthy/financially smart than renters. The report showed that monthly mortgage payments are much more costly than rent payments. This being said, the Financial Post claims that the National Bank accidentally overstated mortgage cost amounts by not subtracting the amount of a mortgage payment that goes towards the principal of the home. They say that the principal amount paid monthly is a form of saving money because it is going directly back into your home, not towards interest for the banks. Within this report, after the principal amount is subtracted from the mortgage payment, mortgages are significantly cheaper than rent payments. This article also talks about other hardships that are tied to renting, such as how much harder it is to actually find a place to rent. The lower rent costs bring in more interest for renters, which then makes for a very low vacancy rate, making it incredibly hard to not only find a place but to be accepted as a tenant out of all the applicants. There are less than 1% vacancy rates in Toronto and Vancouver because of the interest in renting in these areas. 

This article really lays out the cons to renting and makes it clear that the reality right now in Toronto is that it can be incredibly hard to even become a renter in the first place. With such a high demand for rental spaces, it drives the prices up even higher which creates even more roadblocks. It's important to remember that even though renting can sometimes seem like the easy way out, it can still have as many challenges as buying a home in the way of demand and competition.]]> 2021-03-15 21:01:46 UTC https://padlet.com/briannacussoncustomdesserts/wc4hd2e0pd4alfd8/wish/1312828780 briannacussoncustomdesserts https://padlet.com/briannacussoncustomdesserts/wc4hd2e0pd4alfd8/wish/1312829291 Description:
This website is called Rent Seeker. The page we've linked is a rent vs. buy calculator tool. It allows the user to input the different numbers involved with renting and buying in order to help themselves make an informed decision financially. For renting, it asks the user to input rent cost, city of residence, the type of apartment, and the cost of tenant's insurance. For owning, there are obviously a lot more numbers to consider. It asks you to input the cost of the house, the down payment amount, the mortgage interest rate, and the length of the mortgage. It then asks you to include taxes, maintenance, and utility costs if you were to buy, which includes property tax, home maintenance costs, utilities, home insurance, and condo fees if they apply. It will then calculate your total monthly payment for both renting and buying so you can compare. 

Tools like this one can be so helpful to people who are on the fence about renting or buying a home. It allows them to calculate costs and might remind them of costs they could forget to take into account without a tool like this to help. Knowing your different financial options can definitely help to improve your decision making and this sort of calculator really helps to make an educated decision (rather than a guess) at which option is right for you.]]> 2021-03-15 21:01:58 UTC https://padlet.com/briannacussoncustomdesserts/wc4hd2e0pd4alfd8/wish/1312829291 briannacussoncustomdesserts https://padlet.com/briannacussoncustomdesserts/wc4hd2e0pd4alfd8/wish/1312831768 Description: 
This image is an infographic that shows the pros of both renting and buying a home. It shows that an equally good case can be made for either choice, depending on what's important to the person deciding. 

I like this image because it shows that both options can be good ones for different people. It's funny because both options have their own version of "stability" or "peace of mind". For example, renting means you are not needing to be worried about the house itself, the landlord is liable for maintenance and repair. But with owning, the physical stability is there, in that you don't need to worry about a landlord deciding it's time to sell their house, which means you need to move out on relatively short notice. ]]> 2021-03-15 21:02:54 UTC https://padlet.com/briannacussoncustomdesserts/wc4hd2e0pd4alfd8/wish/1312831768 briannacussoncustomdesserts https://padlet.com/briannacussoncustomdesserts/wc4hd2e0pd4alfd8/wish/1312832467 Description:
This image shows the pros of buy and the cons of renting. The image provides five pros and five cons, kind of balancing it leaving it up to the viewer to decide what they take out of it since they have not outbalanced one over the other. 

I think that this can offer some more very great information about buy vs renting. One thing that I really liked about this picture is the cons because I did not realize how many cons there were to rent a house. The one con that would persuade me to purchase a house rather than rent is that the landlord may not renew the lease. If you are renting and planning to stay there for a while, when this occurs it can throw a curveball into your plans. By buying a house it adds a little bit more stability for the renters/owners since they know that they will never have to worry about finding a new place on short notice. ]]> 2021-03-15 21:03:11 UTC https://padlet.com/briannacussoncustomdesserts/wc4hd2e0pd4alfd8/wish/1312832467 briannacussoncustomdesserts https://padlet.com/briannacussoncustomdesserts/wc4hd2e0pd4alfd8/wish/1312835044 1. What did you learn about your topic that surprised you the most?

What surprised me the most about renting vs. buying is how there really isn't a right answer to the question of which option is better. It's so individual to each person's situation, that really a great argument can be made for both options depending on who you are, where you want to live, and what your plans for the future involve. I really did think that the research would show that buying a home was 100% the best option, but it turns out that isn't the case.

2. Provide a real-life example of how this topic is relevant or interesting for you.

I'm a renter and have been for 5 years now, but I would ideally like to buy a home someday, if only for just the freedom to do whatever I'd like to the house and have the security that it is mine and nobody else can decide to sell the home at the drop of a dime and make me move out. It's a safety net for me that I'd love to have someday. However, I've been aware that I'm not ready to buy a house. Researching this topic gave me a better idea about things I need to budget for while saving, along with a better idea of a timeline for when I may actually be ready.

3. 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 think the most important thing to pass on is that buying a house will likely make you a little bit more money over time than renting and investing would. It is definitely a factor that most people would want to take into consideration so they can make an informed decision about whether to continue renting or to take the plunge and buy a home. With that being said, There are of course other factors to take into consideration, like the emotional aspects of owning a home, or the freedom to move as many times as you'd like that comes with renting.]]> 2021-03-15 21:04:08 UTC https://padlet.com/briannacussoncustomdesserts/wc4hd2e0pd4alfd8/wish/1312835044