Buying vs Renting

[Guest NurseNathalie]

Hi.. We talked about this in another thread..but I just wanted to add some info for you.

 

I personally think that it would be a better investment to buy, rather then rent. It would cost you about the same, but then its yours (you can even sell at the end of your schooling and make a sweet profit!!!). the real-estate market is doing very well right now, and interest is very low. For first-time buyers, there are also some special incentives with the banks to make it more affordable.

 

I just wanted to pass along the contact info for my real-estate agent. If you are out of town, you may find it helpful to have someone right here looking out for a great place for you. YOu simply give him the details of what you are looking for (size, price range, etc) and he will send you all listings (current or new listings) that 'fit the bill'... this way, you can narrow it down and come down only once to see what interests you. What's nice, is that he takes the time to find what you are looking for.. since homes move soooo quickly nowadays. yOU dont have to waste all your time trying to find all the new homes being listed.

 

he was very good for us, and did a lot of work! he found us the house that was perfect for my family and I really appreciated his help, since I lived 4 hours away.

 

he also offered to help you find an apartment if you wish to rent instead of buying (although he would prefer to sell houses, of course lol but he said he would help any of you find the place that is right for you..either real estate, or a rental if that's what you need) ..

 

if you need help to find a place, I highly recommend Ron Lamothe .

 

you may reach him at (705) 675-5629 (message service- you give your name and number and Ron calls you back) or through email at: ronlamotheC21select@bellnet.ca

 

good luck with relocating to the Sudbury area !

 

Nat.

[Guest NorthernSLP]

Hi Nathalie,

 

Thanks for the info. I am not in a position to buy just yet but I will keep your real estate agent's information for the future. It is always nice to have a recommendation! Good luck with your studies at Mac!

 

NorthernSLP

[Guest opiedog]

Just curious...does the added value of home equity affect student loans? It sure does with a car, but what does a home do to the mix?

[Guest KerriD]

Hi opiedog,

there was talk from someone who owned a home in one of the other threads. They were having trouble getting a student loan as I recall. Check back and see who it was if you have some time. I don't know if that is the case for everyone, or maybe this person's situation was a bit different. =) How are you holding up with the waiting?

 

Kerri

[Guest opiedog]

Hi KerriD,

 

It might have been me asking the question; I had asked before the board crashed, but no one had an answer at that time. I thought maybe with the new group scoping out loans, they might now something.

 

Haven't heard peep from the waitlist. I had hoped yesterday someone would post something since we went through that June 30th firming up date and the long weekend was over with. Maybe soon...keep your fingers crossed. I've lost track of who is what number where now.

[Guest NurseNathalie]

maybe that is a question that you could ask the loan officer?

 

I own my home....and I found it easier to get a bigger student loan.. I guess because there's equity as collateral (although I didn't have to put my house up against my student loan).

 

Maybe I'm wrong, but I was under the understanding that you could manage your student loan how you saw it fit... you have to pay into rent anyways! why not be able to pay into a mortgage that will give you more bang for your buck?? if a bank is willing to give you a mortgage with a student line of credit as only source of income...then its the bank who is taking the risk, not the bank who offers you the line of credit, no??!!

 

I think that when assessing you as a credit risk... our earning potential will be taken into consideration.. any half decent banker will recognize this, and want to keep you happy... very happy!

[Guest duckyluck]

I just wrote a long essay detailing why you shouldnt buy as a student.

 

I can think of 10 reasons why you shouldnt just off the top of my head.

 

As a landlord, RE investor and MBA'er in addition to being a shocked & dissappointed NOMS rejectee I would advise against it.

 

Everyone is different financially and the needs of their families but all things being equal - buying a house is not the way to go.

 

Feel free to email - I'm willing to trade my financial advice for tips on what to do better next year :-)

[Guest satsumargirl]

OSAP does not count your primary residence against you. So it shouldn't affect the amount you get from OSAP. In fact students on other threads are talking about buying condos etc.. in order to "save" their saved money and still get OSAP.

 

However, while interest rates are low the pricing on houses right now (at least in Sountern ON) is overinflated since everyone thinks it's such a good time to buy.

 

Add up the property taxes, maintenance fees, lawyers fees/real estate agent fees/home inspection fees (for buying and selling), condo fees if you live in one, insurance etc. that you will pay over 4 years and see if you think it is still worth it. Keep in mind taxes increase every year at a rate higher than rent does.

 

I think "they" generally say that you need to live somewhere for at least 5 years to break even. So if you plan on relocating after 4 years for residency ...will it be worth it?

 

Anyway, I am not saying not to purchase. And housing up North may be alot cheaper (but harder to sell with a smaller population??). But when you actually look into it it may not be a great at it intuitively sounds.

[Guest cybernish]

Just a little comment on the buying vs renting in Sudbury in particular. I attended Laurentian (did the BScN) program there 2 years ago and during that time I bought not one but two houses. Bought the first one, lived in it for a year and a half then sold it for $1000.00 more than I paid and ended up with a $6000.00 cheque in the end. The second house I sold after living in it for two years for $1500.00 more than I paid for it and ended up with about an $,8000.00 cheque in the end. After you calculate the land taxes and legal fees etc. I didn't clear that much, but it was still like I lived there for free the whole time. I also had the freedom to come and go and decorate as I pleased. I could bring my dog too. This time around I thought I would rent however I had difficulty finding suitable/reasonable space for rent that was in a decent neighborhood. As it turns out I've decided to buy once again. However I'm not getting a mortgage. I'm going to use my LOC to buy the house and avoid a lot of the extra charges associated with a mortgage (ie. CMHC, discharge fees, etc). My monthly payment on the LOC will only be $400.00 as opposed to about $800.00 or more If I got a mortgage. This way I'm only paying the interest on the LOC. I figure at the very least I could sell it later and use the money to pay back my LOC. My thinking is that I know for sure if rent I will never see my money again whereas If I buy it's like paying myself rent and living in a space for free. Call me crazy but this will be the tenth house I've bought and so far my crazy little methods have worked well for me.

[Guest NurseNathalie]

just a comment about the smaller population making it harder to sell homes..

 

lately, I know a lot of people who have sold their homes.. most were gone within days.. at most a week.. all got their asking price. As I was told, its really a 'seller's market' right now. And although things might change, I don't forsee a very drastic deviation in the next 4 years...

 

I tend to think along the same lines as Cybernish on this one