Crazy. We rent a 3 bedroom house in Armdale (detached) for just under $1500. We didn’t raise rents over the years because we wanted to keep our tenants happy but struggled as costs increased over Covid and rent caps were in place. We are so below market right now it’s nuts. I’m gobsmacked that some houses are so expensive to rent!
@@AndrewStephens the past doesn’t dictate the future. We’ve been in a historically low interest rate environment as rates have progressively come down since the 80s. They can only go up from here.
Look at any news article and you’ll see that real estate is the highest it’s ever been, the market is way overheated. To get in now would be beyond foolish.
@@colleenduffy1139 what I mean is that it’s very easy to get underwater. You may have equity left, but if the debt exceeds the equity leftover, you’re still screwed.
Get your point but if rent is $3000 there is no way this property is costing $425,000. This is going to be at least a $600,000-$650,000 place so kind of off by 50%. Also fine to mention 3 bedroom but better to add in square footage as well as there are a lot 2 bedrooms places as big as and bigger than 3 bedroom places.
The comparison was more so to show what’s possible to buy and end up within a similar monthly payment range. Many of the homes selling for the 400-450k range would be rented out for $2500-$3000 per month. ie: a semi in Sackville these days may rent for $2500 or so + utilities which would bring it around the 3k/month range. I get what you’re saying about sq footage but with rentals it’s not always available in the add so I just used the average 3 bed price tag (but again, this can vary a lot depending on size and location)
I dont see any property around 425k that I would buy and any thing looks good are 750k and mostly flips sitting in market I lost faith in hrm home ownership IMO
Valid point. Still need to pay it upfront though so it has to be factored into monthly costs. But yes, that’s a huge benefit to owning as the money you’re paying is actually going back into your pocket to a certain extent!
Awful video. Most people rent appartments and not homes so the cost is a lot lower. Also how can you not even include maintenance cost of the home? Furthermore, most decent videos aout this topic take into account the opportunity cost since you can invest a lot more if you rent.. This is biased and poorly researched... oh wait, this guy is a REALTOR and is just trying to promote his business -_- well that explains it
The home equity gains in this example will largely outperform any other investing you’re doing with a few hundred bucks saved a month by renting. Even if you said it was $500/month that you’d save by renting and you could invest that. Let’s say it performs well at 10% growth per year. That would work out to roughly 50k in 5 years, with 30k put into it. If you took that 30k, bought a home and the home grew in value at half of the 40 year average growth per year, you’d have close to double the amount (like in the example I used in the video that worked out to roughly 100k equity in 5 years).
@@AndrewStephens Since you think you are so smart, lets take my actual life example. I rent for 1040$ per month and the average home price where i live is 553k. Also 5% is pretty bad for a down payment so lets do 10% (you know why since since yo do this job, dont play dumb) So in my actual life i invest nearly 2k more per month at 10% and i start with 55k (+closing cost + fees so like at leats 60k). I dont even take into accounts bad lucks with repairs and stuff -_- How's that now?
@@Denis0064 Clearly, you have things figured out so I am happy for you! It's also clear that you don't like real estate agents in general (or maybe it's just me), so regardless of how I respond here I know that it will be met with resistance. For starters, most people in Halifax are paying way more than $1,040/month for rent. The average 2 bedroom unit in Halifax is $2,500. The average 3 bedroom unit is $3,000. A family member of mine recently subletted a bachelor unit for $1400 per month. The unit is only about 450 sq ft and it hasn't been updated in decades. While more of a down payment would be better in most cases when purchasing a home, I used 5% as that's pretty typical for a first time home buyer. I would say that at least 90% of my first time home buyer clients are only able to come up with a 5% down payment. Also the difference overall between 5% and 10% down in terms of the default insurance is 0.9%. So the idea of buying a home is usually not determined for most people that if they don't have 10% down, then it's not worth it. PS.. There is lots of data showing that the median net worth of homeowners is significantly more than those who rent (in ages 55-64, ie: approaching retirement).
@@Denis0064 No need to put words in people's mouths. Also, an annecdote (your rent) is not data. It's below market and most people don't have that. I used to have below market rent until the living situation turned into a beyond hellhole. Moved as fast as we could to a place that was double the rent and then bought a house. Never again will I be at the mercy of landlords like that.
Crazy. We rent a 3 bedroom house in Armdale (detached) for just under $1500. We didn’t raise rents over the years because we wanted to keep our tenants happy but struggled as costs increased over Covid and rent caps were in place. We are so below market right now it’s nuts. I’m gobsmacked that some houses are so expensive to rent!
$1,500 for a house is extremely cheap these days! Pretty crazy how much rents have increased over the last 5 years
Is it possible to get a turnkey property in the 750-800k range around an acre?
Yes for sure! Was looking at some listings today that would fall under that category
If interest rates go up, prices come down and that equity vanishes.
Average house prices have increased in HRM every year since 1980 except for 1995 regardless of the rates
Equity may temporarily go down or up but it doesn't vanish altogether, unless something terrible like a fire happens and you have insurance problems.
@@AndrewStephens the past doesn’t dictate the future. We’ve been in a historically low interest rate environment as rates have progressively come down since the 80s. They can only go up from here.
Look at any news article and you’ll see that real estate is the highest it’s ever been, the market is way overheated. To get in now would be beyond foolish.
@@colleenduffy1139 what I mean is that it’s very easy to get underwater. You may have equity left, but if the debt exceeds the equity leftover, you’re still screwed.
Get your point but if rent is $3000 there is no way this property is costing $425,000. This is going to be at least a $600,000-$650,000 place so kind of off by 50%. Also fine to mention 3 bedroom but better to add in square footage as well as there are a lot 2 bedrooms places as big as and bigger than 3 bedroom places.
The comparison was more so to show what’s possible to buy and end up within a similar monthly payment range. Many of the homes selling for the 400-450k range would be rented out for $2500-$3000 per month. ie: a semi in Sackville these days may rent for $2500 or so + utilities which would bring it around the 3k/month range. I get what you’re saying about sq footage but with rentals it’s not always available in the add so I just used the average 3 bed price tag (but again, this can vary a lot depending on size and location)
Not neccessarily off by 50%. But I would take a smaller 3 bed over a larger 2 bc that's what our family needs.
I dont see any property around 425k that I would buy and any thing looks good are 750k and mostly flips sitting in market
I lost faith in hrm home ownership IMO
actually you should only include mortgage interest not the principal, Principal is actually money your are saving each month in your home
Valid point. Still need to pay it upfront though so it has to be factored into monthly costs. But yes, that’s a huge benefit to owning as the money you’re paying is actually going back into your pocket to a certain extent!
Awful video. Most people rent appartments and not homes so the cost is a lot lower. Also how can you not even include maintenance cost of the home? Furthermore, most decent videos aout this topic take into account the opportunity cost since you can invest a lot more if you rent.. This is biased and poorly researched... oh wait, this guy is a REALTOR and is just trying to promote his business -_- well that explains it
The home equity gains in this example will largely outperform any other investing you’re doing with a few hundred bucks saved a month by renting. Even if you said it was $500/month that you’d save by renting and you could invest that. Let’s say it performs well at 10% growth per year. That would work out to roughly 50k in 5 years, with 30k put into it.
If you took that 30k, bought a home and the home grew in value at half of the 40 year average growth per year, you’d have close to double the amount (like in the example I used in the video that worked out to roughly 100k equity in 5 years).
@@AndrewStephens Since you think you are so smart, lets take my actual life example. I rent for 1040$ per month and the average home price where i live is 553k. Also 5% is pretty bad for a down payment so lets do 10% (you know why since since yo do this job, dont play dumb) So in my actual life i invest nearly 2k more per month at 10% and i start with 55k (+closing cost + fees so like at leats 60k). I dont even take into accounts bad lucks with repairs and stuff -_- How's that now?
No need to be disrespectful
@@Denis0064 Clearly, you have things figured out so I am happy for you! It's also clear that you don't like real estate agents in general (or maybe it's just me), so regardless of how I respond here I know that it will be met with resistance. For starters, most people in Halifax are paying way more than $1,040/month for rent. The average 2 bedroom unit in Halifax is $2,500. The average 3 bedroom unit is $3,000. A family member of mine recently subletted a bachelor unit for $1400 per month. The unit is only about 450 sq ft and it hasn't been updated in decades. While more of a down payment would be better in most cases when purchasing a home, I used 5% as that's pretty typical for a first time home buyer. I would say that at least 90% of my first time home buyer clients are only able to come up with a 5% down payment. Also the difference overall between 5% and 10% down in terms of the default insurance is 0.9%. So the idea of buying a home is usually not determined for most people that if they don't have 10% down, then it's not worth it. PS.. There is lots of data showing that the median net worth of homeowners is significantly more than those who rent (in ages 55-64, ie: approaching retirement).
@@Denis0064 No need to put words in people's mouths. Also, an annecdote (your rent) is not data. It's below market and most people don't have that. I used to have below market rent until the living situation turned into a beyond hellhole. Moved as fast as we could to a place that was double the rent and then bought a house. Never again will I be at the mercy of landlords like that.