Investing articles can be long and boring. How about I read the article and provide the important information for diy investing success.
Here it is.
From the National Bank of Canada:
“In the long run, homeowners often fare financially better than renters because homeownership enables forced savings that accumulate over the years, growing into a sizeable nest egg.”
“homeowners were “distinctly better off financially compared to tenants” with similar age and income profiles.”
“when the principal repayment is netted out, the cost of ownership is less than renting in most combinations of housing types and locations.”
“owning enables households to select more desirable neighbourhoods, for example superior-quality school districts, where rental units may be few or non-existent.”
Think you can rent and save the leftover? Maybe you can today and next month, but your life changes and you may slip up 5 years from now. It’s probably too difficult to have extra cash in your wallet at the end of every month and force yourself to invest that money instead of spending it.
I will be encouraging my children to buy their own homes as soon as they are settled and have decided they will probably not be moving great distances to pursue job opportunities.
Read it here, if you’d like (but I’ve explained or highlighted all the important stuff).
I’m a department head for a high school in Toronto. I graduated from the Ivey School of Business at Western University and have been a DIY investor for over 20 years.