Quote:
Originally Posted by steveosnyder
You can build equity without buying a house -- some would say you would be better suited to build equity if you continue renting because you can keep your portfolio more diverse.
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This whole discussion is turning into a condo versus house / renting versus buying discussion, which would be a very interesting separate thread, especially in the context of the Winnipeg Market.
I can speak from personal experience on the owning side of things. I bought a condo (eventually became the vice president of my strata council) at 21 in Vancouver, sold it at a large profit, moved here, and stand to make a large gain on my house here too. Much of my net worth growth has been property-gain related (stock market has yielded me mixed results).
Regarding property taxes. Seems those cancel out based on assessed value, so forget about it.
Condo fees: Yes, they can be pricy... but if your building has amenities like a gym, bar, pool, etc. Those are things you no longer have to pay for beyond your walls. Furthermore, you have to consider that these condo fees are going towards things you'd be responsbile for ANYWAY has a house-owner, and typically include (but are not limited to) gas bill (central heating and hot water), fire insurance for the building (you are responsible for your possessions), general maintenance, and repairs. If a building is well-managed (and not all of them are), a contingency fund can be built to offset, or cover completely, large projects such as a new roof. I've had to spend a fair bit of money on major repairs at my private house. That's a trade-off to consider.
But yes, I admit that the timings of my purchase and sale in BC, then my subsequent purchase here were well-timed with the markets in both cities, and cannot promise that would happen to others. Who knows, maybe the 80's are right around the corner again. Its a personal decision, but if I had to do it again, I'd be a buyer.
Thank you best-friend who wanted his girlfriend to move in, thereby kicking me to the real estate market earlier than I had planned