You know that feeling when you have a small pebble in your shoe, rolling around and jabbing your foot somewhere else during every step? Where does it come from anyways? Do they just magically appear in there!? It’s so annoying. Basically that’s how I feel when I hear this:

“You’re wasting money renting!”

Far too often have I heard this. Every once and awhile, you hear it again. Then you have to remove your shoe and shake out that pebble; at least explain to the person your reasoning behind renting and how you think that phrase has just become some mass produced marketing trick for realtors.

Actually, maybe they walk around and drop pebbles in shoes!

It’s become so deeply ingrained that even sometimes I’ve wondered, well maybe I should be buying a place? Then I take the nearest book I nerd out on and smack myself in the head with it.

“Smarten up! There’s reasoning behind why you’re renting you tool!” I’ll say to myself. Then I reiterate:

Lack of Knowledge: Up until recently I haven’t really been learning much about real-estate. It’s so new to me. A home is going to be the biggest debt of my life. I sure as hell would like to have mastered the knowledge on everything homes before I buy one. I think a lot of people don’t do their research and find themselves overwhelmed because of poor planning.

Finding a career: I am not in a rooted position career wise. Actually, as of September I will be in school. If I buy a home, all of my savings will be gone for a down payment. I will be in debt and walking into university life with more of it than the kiddies who have those student loan things. That’d be stupid!

Can’t afford it: Look up at the last reason. That should provide enough to illustrate this one. And I would prefer to buy with a 20% down-payment at least.

Not ready to settle: You know why relationships don’t work out for me? The same reason buying a home would not work for me. I am not prepared to dig roots. Do I wan’t to live in Edmonton? I’m not so sure. Maybe I will be more interested in finding a different location. Maybe I will be able to sell all of my shit and travel for a year down the road. I wouldn’t want a home just hanging out, wanting to be paid for while I’m trying to live in cooler places in the world.

These are just some reasons why I know I am not ready to buy a home. There are more questions you could ask yourself like:

Can you afford it? Remember, your getting yourself into the biggest debt of your life. Don’t buy more home than you need, and certainly ask yourself if you can afford the payments in the first place.

Lack of job security: Maybe your working at a place that has a high turnover rate, people are dropping like flies etc etc. Would you be okay if you were let go? Maybe you have a freelance career, some months are prosperous while others you’re not yielding the bounties. It might be hard to be accepted for a mortgage and if you do, will you have enough to support those payments?

Uncertainty about size: Not to be confused with insecurity about size! Think of your plans for a family etc. Do you want 5 screaming loud kids running around your humble abode? If that’s the case than a single bedroom duplex just isn’t going to cut it. Wait until you know what you need.

Bad market conditions: It’s tough to tell when the right time to buy is. I believe decisions should be more personal, based on your situation. You can’t really time the market, but you certainly don’t want to buy after housing prices have skyrocketed.

Pursuing a business: Maybe all of your capital and energy is going into becoming the next big startup. You don’t want to flop on that with a mortgage. And if it takes off you can buy more home than you need after all.

These are some things to consider when you’re questioning buying a home vs. renting. You may be thinking of that awful pebble in your shoe. Remember, either way your paying out money that you don’t get back.

  • Renting: You pay a landlord to have a roof over your head.
  • Buying: You pay interest, property taxes, maintenance fees, home-owners insurance, and for other unexpected costs. Plus your in a massive debt.

You may argue that you are paying into equity and you have this great investment you live in.

Which reminds me:

I don’t believe in real-estate as an investment: Ya I said it, and I will talk about this more later. I’ve heard so much about investing in real-estate and from what I have been reading up on, I’m not so sure it’s the better option for investing. I was even asked when I was talking about investing in the stock market: Wouldn’t your rather invest in real-estate? Well I beg your pardon? Do you mean like REITs or? Because with the stock market I don’t have to pay out all this interest, taxes, etc etc. I don’t have to be in debt to invest in something. I can build equity, without debt. Now before you get all pissed off, I’m not saying it’s a bad investment. I’m just not so sure it’s as good as people make it out to be…

 

Later days,

-Jason

 

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