# Rent And Buy? Need your advice



## peanutbutter (Apr 22, 2013)

Hello

*Background:*
I am 27 and have 2 sources of income (Full time job + small business). 

- As of 3 months ago i am now earning $13,000-$14,000 per month (after tax which is slowly increasing every month as business is taking off). 
- Total savings so far ($60,000 in Savings Account @ 1% nothing too fancy) (no real investment .. been thinking of investing some in index funds/etfs .. my rrsp and tfsa allocations are completely open - never invested in it)
- My monthly expenses ($1300 to parents to help them with their mortgage + $1500) --- Rest goes in saving
- I have no debt
- I do own a share in a house in the oakville area (my parents live in it -- valuation is around $850,000+ at the moment)

*Situation:*
So me and my wife are looking for a small place to move into. Our preference is oakville/burlington/milton area (2-3 bedroom townhouse or semi would be perfect). Our goal is to get something that we can pay off within the next 3-5 years so we are looking for in the range of like 250,000-300,000ish. Having said that, its almost impossible to find something in that range around this area unless its a condo. I personally prefer to live in a house.

*Question*
What i am thinking ... since i can't afford to buy something i want to live in (in oakville/burlington area) ... i should rent it instead. I can easily get something we are comfortable in for around 1500-1600 + utilities. To offset me paying my rent, i am thinking of investing in real estate as rental property in a more affordable area. Since i am not going to live in it i am then open to buying it in any location near by like brantford etc which may be more affordable and within my budget. 

So my question is, is this something you would advice? What would you do in my situation? I know people have been saying house prices may stabilize and/or market may crash, having said that is it in my best interest to wait a year or so before buying investment property and save up on a bigger down payment? By next year if things go well i can potentially save $120,000+ in addition to my 60k that i have already saved.

Any advice would be appreciated. Thanks!


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## Potato (Apr 3, 2009)

Just rent. If you can make that kind of money in a business that is still taking off then don't give yourself needless distractions like becoming an amateur landlord -- focus on what you're good at!


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## Rusty O'Toole (Feb 1, 2012)

You would be better off to rent, and invest your savings in the stock market. Either learn value investing or just pick a few good ETFs. I say this as someone who has been investing in real estate for 40 years.


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## none (Jan 15, 2013)

Rusty O'Toole said:


> You would be better off to rent, and invest your savings in the stock market. Either learn value investing or just pick a few good ETFs. I say this as someone who has been investing in real estate for 40 years.


^ Listen to this guy ^


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## Berubeland (Sep 6, 2009)

Being a landlord is actual work and you already have 2 jobs already. I would suggest that you keep doing what you are good at rather than learning a whole other trade.


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## RBull (Jan 20, 2013)

Rent. Keep making good money. Let the dust settle in real estate and enjoy the same home for less by renting.


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