Real Estate

Rent or Buy in 2020?

  • Last Updated:
  • Feb 11th, 2020 7:42 pm
Tags:
[OP]
Newbie
Jan 4, 2020
11 posts
1 upvote

Rent or Buy in 2020?

My friend who has been renting a townhome for past 5 years has recently been told by the landlord he is putting it up for sale in Ottawa. If the new owner wishes to live in the townhome he is obliged to vacate in 60 days.

He is wondering if should continue renting or buy a house in Ottawa now?

I am new to Ottawa - couple of years and to me the housing market does not look healthy from buyer's perspective e.g. multiple offers, people lining up for new townhome lots released by builders, limited resale home selection, etc. So my inclination would be to wait. If he has to rent a new place the rent would go up by 20%-25% from what he is paying now.

Any thoughts on if he should continue renting or buy a home? His budget is $500K-$600K - which Ottawa or surrounding suburbs offer value?

Thanks!
13 replies
Deal Expert
Feb 29, 2008
19417 posts
17901 upvotes
Tarrana & The Ri…
Buy. Ottawa property has been undervalued for a while and prices are finally going up. I'd always rather buy than rent. For one, no one would be kicking you out. But think about it. If you don't invest money in stocks or something else, what has renting for 5 years gotten your friend? Then renting again....That's a lot of money paying someone else's mortgage. If he can afford it, buy a place he can live in long term and can also rent it out if need be. If the market falters, if your friend is playing the long game, he will be fine.
Member
Mar 29, 2016
209 posts
183 upvotes
Toronto
My opinion would be to Buy and live in it for at least 5 years before you plan to sell.
Popular suburb neighborhood in Ottawa: Kanata, Stittsville (Kanata South), Barrhaven, Riverside South (Future LRT). Freehold Town home starts around 450 ~ 500K.
Glebe & Westboro are pretty expensive. Others can give more information if you post/request in Ottawa forum.
Deal Addict
Jun 7, 2017
1043 posts
834 upvotes
BC
Buy. Ottawa is trending up.
Sr. Member
Jun 15, 2015
971 posts
1181 upvotes
Thornhill, ON
Buy. Justin is a lock in the next election Smiling Face With Sunglasses
[OP]
Newbie
Jan 4, 2020
11 posts
1 upvote
Thanks, to all the responses thus far.

Any other / additional thoughts?
Deal Addict
Jun 13, 2009
1015 posts
269 upvotes
Does he plan to live in Ottawa for a long time? Only reason buying would be bad is if he has to sell in the midst of an upcoming recession. Dont bother asking when and how long as no one knows but this is why I would ask the friend what his future plans are. Job stability is another factor to consider.
Banned
Jun 1, 2017
513 posts
470 upvotes
If government does not restrict the increase of rent, the landlord might continue to rent to your friend.
Member
Nov 5, 2017
309 posts
311 upvotes
If you think prices will continue to rise. Buy. To me, this is the only logical reason to buy. If you thinking real estate is bubbly and crazy than answer is yes. Now a days everything is bubbly.
Deal Addict
Mar 20, 2017
1366 posts
1157 upvotes
Muhaha.
Why so weird subject of the post?
It should be called "Buy in 2020 or rent forever?"
Deal Addict
Aug 12, 2004
4506 posts
2166 upvotes
Calgary
Robert052 wrote: My friend who has been renting a townhome for past 5 years has recently been told by the landlord he is putting it up for sale in Ottawa. If the new owner wishes to live in the townhome he is obliged to vacate in 60 days.

He is wondering if should continue renting or buy a house in Ottawa now?

I am new to Ottawa - couple of years and to me the housing market does not look healthy from buyer's perspective e.g. multiple offers, people lining up for new townhome lots released by builders, limited resale home selection, etc. So my inclination would be to wait. If he has to rent a new place the rent would go up by 20%-25% from what he is paying now.

Any thoughts on if he should continue renting or buy a home? His budget is $500K-$600K - which Ottawa or surrounding suburbs offer value?

Thanks!
I could find exact same posts in 2009

https://forums.redflagdeals.com/why-buy ... #p12979921

https://forums.redflagdeals.com/renting ... /#p8029526

https://forums.redflagdeals.com/renting ... #p15846503
Mike2000z28 wrote: I want to hear what some of you think.

Im married and currently live in an apartment in Montreal. No kids just yet. The rent is 600/month this year. The wife and I were looking for townhouses but they are a bit highpriced at the moment which is unfortunate since i don't think they will get any cheaper. I really don't want a condo since its like a glorified apartment and not to mention the resell is a real PITA.

Taxes right now on a house would avg 2-3k a year and thats money you won't get back. If i deduct that off the rent i pay does it really make sense to get into real estate? I have 20k a for a downpayment. I have friends who say get a house and others that say save your money because houses cost mucho money and more than youll know with upkeep etc..

Anyone else staying in an apartment for now?
Easy answer, buy if you can afford it, rent if you cannot and it doesn't make sense in your life right now. Timing the housing market (as can be seen by the decade + of RE crash doom talk) just doesn't work.
Newbie
Feb 4, 2014
62 posts
42 upvotes
Canada
I think your friend should consider buying the very same house he is currently renting... if he likes it it makes sense. The seller will probably be willing to sell it for less than market value given he will not have to pay broker/agent fees!
[OP]
Newbie
Jan 4, 2020
11 posts
1 upvote
There are issues with the townhouse...roof leakage fix and windows need replacing. The landlord has not maintained the rental property ... kitchen, appliances, carpets all need replacement/rennovating. Furnace duct has been cleaned in years!

So he is reluctant to buy the rental townhome albeit price concession
Jr. Member
Aug 21, 2017
195 posts
132 upvotes
Well IMO those are good reasons to haggle down the price further. So just go and get an idea of how reno will cost.
If the owner wants to sell he/she probably have to reno the home anyway, so he/she may be willing to just sell to your friend to save the trouble.
Robert052 wrote: There are issues with the townhouse...roof leakage fix and windows need replacing. The landlord has not maintained the rental property ... kitchen, appliances, carpets all need replacement/rennovating. Furnace duct has been cleaned in years!

So he is reluctant to buy the rental townhome albeit price concession

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)