Don't Buy A House in Canada in 2024 (To Live In) Here's Why....
Вставка
- Опубліковано 8 чер 2024
- Should you buy or rent a house in Canada in 2024?
Discover why owning a house in Canada might not be the best idea in 2024!
Join Adam JD Martin as he explains the pragmatic argument for renting instead of owning your primary residence for real estate investors & homeowners.
Find out how flexibility and agility, opportunity cost, and the leverage factor can play a significant role in your financial success. Don't miss out on this eye-opening discussion!
What are your thoughts here? Do you agree with Adam or disagree with some of his points? Let us know in the comment section below!
Follow & Connect with Adam Martin:
Instagram - / adamjdmartin
Facebook - / adamjdmartin
Follow The Canadian Real Estate Channel on Social Media:
Instagram - / canada_rei
Facebook - / canadianrealestatechannel
0:00 - Is Owning A House A Bad Idea?
1:07 - Flexibility & Agility
3:11 - Finance Considerations
4:15 - Opportunity Cost
7:22 - Other Side of Opportunity Cost
9:05 - Timing The Market Cycles
11:44 - Adam's Challenge For You
------------
#RealEstate #CanadianRealEstate #homeownership - Розваги
I used to feel this way. But now, having kids and having to leave rentals before we were ready (being sold, renovations, etc.) you lose the control over when you decide to move. It was no longer a trade I was wanting to make.
Yeah I totally get that. I think househacking would probably be the best solution; only when it makes sense for you. I think I would drop the househacking immediately too with a family and just simply want to have our own space for growth and freedom. Cheers, @adamjdmartin
What are your thoughts? Do you agree with Adam's points on homeownership in 2024 in Canada?
Share your thoughts with us! 👇
I rent, and I decided to use my money on purchasing investment properties instead of buying a house for myself. Best decision I've ever made. I'm about to close on 9 more units with my brother, and we will be profiting nearly $60k/year. Way better than buying a house.
I plan on buying investment properties around the world in places that will grant me citizenship by investment, so I don't know if I will ever buy an actual residence or if I will continue to rent and give myself flexibility while traveling.
Dont forget Principal resident is tax free no capital gains on that.
Biggest advantage.
Yes, that would be the best argument for purchasing a primary residence, especially in an growth market or inflationary market if you sold at near peak to liquidate capital for the next trough. Cheers, @adamjdmartin
For now...things can change
it's the most ideal case but usually 99% of the people have not been able to buy back a primary property... if you have nothing now then i wouldnt argue renting would be a better option but if you have a primary unit then perhaps selling it moving to other cheaper part of canada could be one of the options
but it's hard when you have kids as they have their friends, schools and social circle... same goes to adults@@CanadianRealEstateChannel
I think a happy medium is to house hack. Buy a duplex or triplex and live in one. This also helps with cap gains tax and your heirs if you should pass.
I'm totally with you on this one. I'm currently house hacking a 5plex with two commercial units on the bottom. It's great because the businesses are only open during regular business hours so there's a lot less residential issues that you might face, and you have the benefit of the stable tenants from the other two residential units to cover the costs. House hacking is probably the best financial decision one can make when getting started. Cheers, @adamjdmartin
Every point is bang on! Thank you.
Thank you Peter! I woke up this morning prepared to be roasted on these comments haha. Cheers, @adamjdmartin
Interesting points Adam! 👏
Glad you enjoyed it
My opinion (i like to put numbers in perspective ) is buy real estate to live in not more than home worth $600k max. If you want to have all other amenities like double garage, finished walkout basement, big yard, very nice neighbourhood etc them rent as your $600k and below house might not have those amenities.no need to purchase just to live in a home worth $650k and above unless you are truly wealthy . A lot of people are in serious problems now bcos they want a home with a lot of amenities just for pride of ownership 😊
Agreed. The amenities are what kill you when you’re in these more expensive markets.
Would you recommend buying a primary property where you can rent out a portion to earn cash flow ?
100%. We have several videos on "House Hacking", where you live in a portion of the building and rent out another portion. It's literally the best step anyone could take on the path to financial independence. It should cut out like 40-60% of typical cost of living if you're able to get rid of your cost of shelter. Cheers, @adamjdmartin.
Absolutely on point, renting makes much more sense short term. Should one pay down their primary residence first or their rentals first?
IMO primary residence, since you can write off the rental mortgage interest.
Ideally the cashflow from your rentals would off-set or cover your personal living expenses. That would be the ideal situation. In terms of order of operations, I would personally pay the personal residence down first. You can use the Smith Maneuver to write off the interest portion of the mortgage payment from your rentals, but cannot do this for your primary residence. Paying off your primary will also reduce your cashflow requirements, allowing you to invest without that constraint. Would free up ability for you to tag the primary as collateral for other investments, and to have the peace of mind that you can be unemotional about selling rentals that are ready to be sold. Cheers, @adamjdmartin
@@CanadianRealEstateChannelThank you so much for the answer, would you do a video on the Smith Maneuver technique? This is the first time I have heard of it.
🔥🔥🔥
Definitely controversial; however, I completely agree and have been implementing this since 2021. Our rentals have appreciated immensely, cash flow is up, and our rent has not increased beyond 3% per year. We're on track to, and in the process of, taking advantage of our massive savings and rental equity in the coming years. If we would have purchased in 2021 we would have maybe a bit of equity, but the payments wouldn't have allowed us to save nearly as much. If you have decided to be an investor (RE or other), rent until your investment cash flow pays for your essentials. You can then invest massive amounts of primary income until early retirement!
I love this. Thank you for sharing. .I expected to see some torches and pitchforks in the comments, but overall it seems there has been positive experiences with this strategy. I know it has helped me to be super agile and build without making emotional decisions. And to your point, at a cost basis that increases 3% a year haha.
well I bought my first home in 2023. so it should be fine for me lol
Congrats on your purchase! Where did you buy Benny!
It sounds to me like you are advocating a two-pronged approach:
1) Buying real estate that is under-valued, somehow mispriced by the market, and taking advantage in creating positive cash flow.
Meanwhile simultaneously ...
2) Renting real estate that is over-valued, somehow mispriced by the market, and taking advantage of using the property while that owner does not realize any positive cash flow and quite the converse is subsidizing your rent.
Is the above correct?
You could probably boil it down to buy low, sell high.
The price is to own a house today is understandable. They've gone up so high and if you get a divorce , at least a man saves money there😊... It's out of control the costs. This is only the beginning there's too much corruption in the government😊😊
Haha words
Bottom line. If you decide to move, you get NOTHING back from renting.
Great argument to the points made in this video 👌
BOTTOM LINE IS UR PAYING IT N HIGH TAXES SO WHO U KIDDING
WOW What an idiotic response. If you are renting you get NOTHING back. If you own you generally make a good profit when selling. @@user-tu8jo3ub6l
you are not smart with your money
NOT WORTH OWNING A HOUSE N CANADA THE TAXES ARE SO HIGH ITS BS
Taxes are about 1% of property value. I don’t know how much lower taxes are expected to be. $7000 1% ownership cost on a $700k house does not make it not worth owning a house, it’s not contributing a tonne per year especially considering all city services and utilities being routed to the house that will need repairs
Agreed :(
😂🔥🔥🔥 WROOONG!
I rent and I decided to use my money on purchasing investment properties instead of buying a house for myself. Best decision I've ever made. I'm about to close on 9 more units with my brother, and we will be profiting nearly $60k/year. Way better than buying a house. The house will come eventually.
LOVE THIS! Thank you for sharing!