Rent or Buy in 2020?

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Feb 11th, 2020 7:42 pm

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Feb 8th, 2020 8:45 pm

Robert052 [OP]: Newbie; Jan 4, 2020; 11 posts; 1 upvote

Feb 8th, 2020 8:45 pm

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

Feb 8th, 2020 9:00 pm

JayLove06: Deal Expert; Feb 29, 2008; 19417 posts; 17901 upvotes; Tarrana & The Ri…

Feb 8th, 2020 9:00 pm

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.

+2

Feb 8th, 2020 9:57 pm

casanova2001: Member; Mar 29, 2016; 209 posts; 183 upvotes; Toronto

Feb 8th, 2020 9:57 pm

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.

Feb 8th, 2020 10:06 pm

Furcorn: Deal Addict; Jun 7, 2017; 1043 posts; 834 upvotes; BC

Feb 8th, 2020 10:06 pm

Buy. Ottawa is trending up.

+1

Feb 9th, 2020 8:53 am

DisneyKruze: Sr. Member; Jun 15, 2015; 971 posts; 1181 upvotes; Thornhill, ON

Feb 9th, 2020 8:53 am

Buy. Justin is a lock in the next election

+1

Feb 9th, 2020 10:33 am

Robert052 [OP]: Newbie; Jan 4, 2020; 11 posts; 1 upvote

Feb 9th, 2020 10:33 am

Thanks, to all the responses thus far.

Any other / additional thoughts?

Feb 9th, 2020 1:18 pm

skwigglyline: Deal Addict; Jun 13, 2009; 1015 posts; 269 upvotes

Feb 9th, 2020 1:18 pm

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.

Feb 9th, 2020 4:04 pm

neilsmith43: Banned; Jun 1, 2017; 513 posts; 470 upvotes

Feb 9th, 2020 4:04 pm

If government does not restrict the increase of rent, the landlord might continue to rent to your friend.

Feb 10th, 2020 2:20 pm

Smart123: Member; Nov 5, 2017; 309 posts; 311 upvotes

Feb 10th, 2020 2:20 pm

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.

Feb 10th, 2020 2:37 pm

GalvToronto: Deal Addict; Mar 20, 2017; 1366 posts; 1157 upvotes

Feb 10th, 2020 2:37 pm

Muhaha.
Why so weird subject of the post?
It should be called "Buy in 2020 or rent forever?"

+1

Feb 10th, 2020 4:54 pm

Firebot: Deal Addict; Aug 12, 2004; 4506 posts; 2166 upvotes; Calgary

Feb 10th, 2020 4:54 pm

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.

Feb 10th, 2020 5:10 pm

yasben: Newbie; Feb 4, 2014; 62 posts; 42 upvotes; Canada

Feb 10th, 2020 5:10 pm

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!

Feb 11th, 2020 6:51 pm

Robert052 [OP]: Newbie; Jan 4, 2020; 11 posts; 1 upvote

Feb 11th, 2020 6:51 pm

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

Feb 11th, 2020 7:42 pm

fiddlewin: Jr. Member; Aug 21, 2017; 195 posts; 132 upvotes

Feb 11th, 2020 7:42 pm

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

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