Buying Beats Renting

by Darrin DeRoches August 19 -25, 2010

I was sitting on a patio recently enjoying a few pints when the people at the table next to me started to discuss whether or not they should buy a house.  I really wanted to jump over to their table, introduce myself and tell them YES, buy a house!  But since I was enjoying my pint I just sat there and listened to their conversation about the pros and cons of purchasing property.     One guy was making his case about buying a duplex on Homewood; it had dropped from $325,000 to $275,000 and it would be totally worth it.  His buddy went on to say he pays $850 for an apartment and it’s not worth buying a house because how are you going to afford it?  The third said, “I’ve done the math and it is not worth it, just keep renting!”   I was finishing my pint and so wanted to jump into their conversation, but eavesdropping was probably bad enough so I bit my tongue.     The guy who wants to buy is a pilot – making money and is now thinking about investing in his future – he should buy!  His friends do not have the luxury of walking into a bank and saying “I am a pilot and would like to get a mortgage.”  Approved!  The pilot is discussing his future with a friend who can only afford to rent and a friend who has done the math. Great advice.  The truth is if the pilot can afford to purchase a property, he should, whether it’s a duplex, condo or townhouse. He may be travelling around the world, but he wants to come home to a place he can call his own.      They went on about the down market, the math, and how cheap rent is.  All bullshit!  They cannot afford to buy a home, so they rained on his parade.  If you are thinking of buying a home and you can afford it, buy it!  After two years you are ahead of the game.  After five years you are making money and after ten years you should have an investment you can start to use to further your future.  The old saying that you cannot go wrong with real estate is so true.  The real estate market is tied to our economy. Yes it will go up and down, but mostly it trends upwards.  Your safest bet is always real estate – do not second guess it!     I should have put my pint down, sat with the group, and ranted on and on how real estate is the best investment. If you honestly feel it is time to buy, buy!  Do not listen to your friends’ advice – they are simply house blocking you.  Nobody wants you to better yourself and leave them behind.  Do what is best for you and buy a home you can afford.  But one word of advice:   if you buy a duplex, do not rent it to your friend. Never mix business with friends or family. V                           [DARRIN DEROCHES] Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.