Most home owners I know are much happier than when they were renting. What few people I know that prefer to rent are single old women that do not know how to do much of anything as far as home upkeep so they are more comfortable renting a small place.
Finally! I'm sending this link to my father who has been telling me for 20 years now i should buy a home and i am always arguing as to why it isn't the best idea necessarily. I'm 52 and he still looks at me like i'm 16. I digress. I have relocated 21 times since i'm 18 years old, many states and other countries and frankly, i love the idea i am not permanently tied to a geo location. My father's counter argument is that i should buy a house and let others live in it to pay the mortgage. I usually can stop him from talking when i speak of nightmares associated with that paradigm.
I bought a condo because I was afraid to be left out homeless in case some cataclysm happens that makes me lose my income stream. But now there's war in my country and I had to move to the other country and now there's a risk of permanent destruction. Also, I wouldn't come back to that town anyway so now it's a useless asset. I can rent it out but the return would be ridiculously low. Also, if I will sell it, I will sell it at a loss because of the expensive renovation that turned out to be shitty. Also, it's a huge opportunity cost, because my assets produced zero income and zero savings for the last 5 years because of long construction time so I still had to rent somewhere else. I could have had +100% on my assets if I just invested in the S&P500 for the last 5 years.
As a newcomer to Canada, your content helps tremendously. But I agree with your assessment that the content is helpful to just about everybody in the world.
I'm glad I bought my little 700 sq. ft. (65 sq m) house 40 years ago. The upkeep has been low, and the neighbors are fine. The size keeps me from buying too much crap. I've watched/heard all your casts. So much so that about 6 months ago, I changed my smart speakers from F to C.
I don't have life goals. I didn't expect an increase in happiness from owning a home. But now that I do, I really like it. Here in NL renters are worse off due to insane rent increase over the years. Rent is approximately 200% of mortgage payments.
Thanks for the Canadian content warning.... Although foreign content & context (to me 🇦🇺) it increases my critical thinking about my own situation... The principles you present are universal and are very relevant... You got me comparing and contrasting and asking lots of questions... 😁
As much as I want certain amenities like a fireplace in my back yard makes me think twice after listening. I've always thought about the "time vs freedom" paradox where the more time you have the less "freedom" of choice and the more freedom the less time. Makes me think if there are condos near nature but doubtful.
Regarding the MIT study "When Do Investors Freak Out?" - it seems to identify panic sales as a 90% or greater reduction in a portfolio's equity asset holdings in one month, with net equity asset sales that month of 50% or more of their starting value. I.e. there's no requirement / implication of a 90% drawdown in the equity assets' price first. Nor of any drawdown, for that matter, if >= 90% of the equity assets were sold in a month. I haven't found mention in the paper of whether the authors attempted to identify / exclude cases that match this pattern but aren't panic sales (e.g. liquidation of equity assets towards a down-payment on a house, a business venture, or a transfer to another brokerage firm).
I agree with most things you said expect min 52:00 where for you cleaner place is just 'a consideration'. For many people it's one of the most important metrics which can alter my decision including happiness. Also you might be a good renter but based on my experience and people around me I have yet to see a renter who takes care of the property.
I'm renting right now but I would like to buy eventually for the control aspect. It's not always going to be easy to negotiate with a landlord and you might be forced to move out. It's not truly yours.
I don't think renting long term is for everyone, certainly not those types who would be overly disturbed by having to relocate and all that it entails. I view it as an adventure and given the renter laws in most states, the notice that must be given is typically enough to not have to go into heart attack mode to start the search. With that, i realize that also means extra costs incurred like moving vans and first/last rents which would be the one thing that is most uncomfortable. I do believe the pros of renting are definitely more than the cons otherwise.
One more and i'm exiting stage left. The comment about the finding related to 'rental properties are not typically as nice as owned homes because homeowners take better care of their homes than renters". I think what is important to note is something related to the many comments and studies / surveys that spoke to 'extrinsically motivated'. Could we consider, outside of perhaps that actual landlord not addressing serious issues, renters just don't give a frack what something looks like as much as those who move through the world with the idea that appearances matter. Who we are as people is often reflected in how we dress, what cars we drive (or bikes we ride) and more. Maybe what appears 'crappy' to one subset of people, appears just fine to another. Relativity.
Gardening is my hobby. Otherwise, I wouldn't own a house since I believe I could earn a greater return by renting and investing the difference in a diversified portfolio over time. There are many associated costs that a younger person owning a house isn't aware of.
Most home owners I know are much happier than when they were renting. What few people I know that prefer to rent are single old women that do not know how to do much of anything as far as home upkeep so they are more comfortable renting a small place.
Finally! I'm sending this link to my father who has been telling me for 20 years now i should buy a home and i am always arguing as to why it isn't the best idea necessarily. I'm 52 and he still looks at me like i'm 16. I digress. I have relocated 21 times since i'm 18 years old, many states and other countries and frankly, i love the idea i am not permanently tied to a geo location. My father's counter argument is that i should buy a house and let others live in it to pay the mortgage. I usually can stop him from talking when i speak of nightmares associated with that paradigm.
I bought a condo because I was afraid to be left out homeless in case some cataclysm happens that makes me lose my income stream.
But now there's war in my country and I had to move to the other country and now there's a risk of permanent destruction.
Also, I wouldn't come back to that town anyway so now it's a useless asset. I can rent it out but the return would be ridiculously low.
Also, if I will sell it, I will sell it at a loss because of the expensive renovation that turned out to be shitty.
Also, it's a huge opportunity cost, because my assets produced zero income and zero savings for the last 5 years because of long construction time so I still had to rent somewhere else.
I could have had +100% on my assets if I just invested in the S&P500 for the last 5 years.
From the heart of Europe, much appreciation for the new intro.
As a newcomer to Canada, your content helps tremendously. But I agree with your assessment that the content is helpful to just about everybody in the world.
UK listener here. Love the content - always interesting and insightful. Many thanks!
Dutch listener here. Love the podcast.
Empirical evidence based information is very satisfying.
I'm glad I bought my little 700 sq. ft. (65 sq m) house 40 years ago. The upkeep has been low, and the neighbors are fine. The size keeps me from buying too much crap. I've watched/heard all your casts. So much so that about 6 months ago, I changed my smart speakers from F to C.
I don't have life goals. I didn't expect an increase in happiness from owning a home. But now that I do, I really like it. Here in NL renters are worse off due to insane rent increase over the years. Rent is approximately 200% of mortgage payments.
Czech republic here, always looking forward to the next episode.
Was in Sumava forest this week. Beautiful country you live in!
True happiness comes from within!
Thanks for the Canadian content warning.... Although foreign content & context (to me 🇦🇺) it increases my critical thinking about my own situation... The principles you present are universal and are very relevant... You got me comparing and contrasting and asking lots of questions... 😁
From Honolulu, Hawaii, this was very informative.
As much as I want certain amenities like a fireplace in my back yard makes me think twice after listening. I've always thought about the "time vs freedom" paradox where the more time you have the less "freedom" of choice and the more freedom the less time. Makes me think if there are condos near nature but doubtful.
Regarding the MIT study "When Do Investors Freak Out?" - it seems to identify panic sales as a 90% or greater reduction in a portfolio's equity asset holdings in one month, with net equity asset sales that month of 50% or more of their starting value. I.e. there's no requirement / implication of a 90% drawdown in the equity assets' price first. Nor of any drawdown, for that matter, if >= 90% of the equity assets were sold in a month. I haven't found mention in the paper of whether the authors attempted to identify / exclude cases that match this pattern but aren't panic sales (e.g. liquidation of equity assets towards a down-payment on a house, a business venture, or a transfer to another brokerage firm).
I agree with most things you said expect min 52:00 where for you cleaner place is just 'a consideration'. For many people it's one of the most important metrics which can alter my decision including happiness. Also you might be a good renter but based on my experience and people around me I have yet to see a renter who takes care of the property.
Greetings from Uruguay! Amazing content as always, regardless of country
I'm renting right now but I would like to buy eventually for the control aspect. It's not always going to be easy to negotiate with a landlord and you might be forced to move out. It's not truly yours.
I don't think renting long term is for everyone, certainly not those types who would be overly disturbed by having to relocate and all that it entails. I view it as an adventure and given the renter laws in most states, the notice that must be given is typically enough to not have to go into heart attack mode to start the search. With that, i realize that also means extra costs incurred like moving vans and first/last rents which would be the one thing that is most uncomfortable. I do believe the pros of renting are definitely more than the cons otherwise.
Thanks from Hawaii.
Hello from Romania!
From two *amazing* Canadians!
Heard something in the background.... a banging like a laundry machine running?
Possibly the demolition going on outside near my office
One more and i'm exiting stage left. The comment about the finding related to 'rental properties are not typically as nice as owned homes because homeowners take better care of their homes than renters". I think what is important to note is something related to the many comments and studies / surveys that spoke to 'extrinsically motivated'. Could we consider, outside of perhaps that actual landlord not addressing serious issues, renters just don't give a frack what something looks like as much as those who move through the world with the idea that appearances matter. Who we are as people is often reflected in how we dress, what cars we drive (or bikes we ride) and more. Maybe what appears 'crappy' to one subset of people, appears just fine to another. Relativity.
Estonia is listening as well.
Gardening is my hobby. Otherwise, I wouldn't own a house since I believe I could earn a greater return by renting and investing the difference in a diversified portfolio over time. There are many associated costs that a younger person owning a house isn't aware of.
volume is too low
Cheers from Poland
Greetings from Poland :) why so silent?
Please turn up the audio
Ditto on getting hair clippers a few months into the pandemic. They've paid for themselves 10x over.
Thanks from brazil
Hol' up ben.... you broke the freespace on the bingo card! 😥
No1 in Canada for a weeks is still being no1
I want to live in a van down by the river.