Rob Carrick has a column out today in the Globe and Mail questioning whether people have a false sense of what is better, rent or buy.
Rob outlines a guide to tell whether a home purchase makes sense in today's market:
1) "The monthly cost of carrying your mortgage and other debts plus your monthly share of property taxes and heating is markedly lower than the maximum 40 percent of gross monthly income permitted by lenders
2) "You have discussed with your lender how much your payments would be if interest rates rise either a little or a lot in your early years as a homeowner"
3) "You've got a good start on saving for retirement and can foresee being able to make at least modest contributions in your early years as a homeowner"
4) "If you have kids, you're able to regularly put money away in a registered education savings plan"
5) You have a plan for finding the money to furnish your new home, take family trips and cover emergency expenses without going into debt."
Read the full article online at: http://www.theglobeandmail.com/globe-investor/why-home-ownership-may-just-be-a-pipe-dream/article1990160/