It's been almost two years since I've become a home owner. My wife and I bought our first home up here in North Vancouver - a detached brand new house with a basement apartment that helps us with our mortgage.
With interest rates so low our monthly mortgage payments aren't an issue, however I struggle with the feeling that I'm a slave to the bank; that ownership feels more like a burden than anything else and I miss the freedom of renting.
I think about the amount of interest I'm paying to the bank over the next 35 years and I think about how I saved for 8 years of my life to make my most modest down payment and of course, the money my folks loaned (or rather gave) to me to help get in to our home and it just feels wrong to me - all this debt. I just don't like being in debt to anyone, not even a mortgage.
So I think about my down payment and my parents bursary and I wonder what it would be like to go back to renting and to take all that money and invest it instead. I just feel like that age old financial strategy of investing in your home is antiquated now that homes are so preposterously expensive in the Lower Mainland. Sure it worked for our grandparents when their homes could be bought and paid for with a 10 year mortgage and salaries were higher in adjustment to inflation but now the entire concept seems unservicable. Myself and almost everyone I know who owns their home here in Vancouver is just so house poor and sweating bullets over the next interest rate hike. I left myself a buffer, I'm good until about 7% then I'll start shitting my pants so I was careful to not over extend myself.
However today a friend of mine forwarded this link: http://www.edrempel.com/pdfs/art12.pdf
Admittedly I'm not advanced enough with my knowledge of tax laws and investment strategies, so I thought I'd hit up some of you investment and real estate gurus for your take on this guy's sales pitch.