Why we feel pressured to buy a home, even if it's not the right choice for us

  • 📰 financialpost
  • ⏱ Reading Time:
  • 52 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 85%

Canada Headlines News

Canada Latest News,Canada Headlines

Buying a home has historically been a low-risk long-term asset that makes people feel safe.

agree it’s possible to be financially secure without owning a home, the same group also believe it’s the best investment a person can make.As home prices start to flatten across the country in a slowdown that has been “expected and forecast for some time” — according to the Canadian Real Estate Association’sinitiated by the Bank of Canada, has also led to higher housing prices. The bank’s interest rate affects the cost of borrowing for many loans, including mortgages.

Renting long term, on the other hand, carries many of the inverse perceptions. Renters tend to worry about the stability of their situation and feel a lack of control since their“Humans are, by and large, risk-averse,” says Ruffle. “And owning a home is a risk-averse thing to do; it protects you against the uncertainty of renting.”For generations, buying your first home has served as an important milestone.

To help people choose between renting and buying from a financial standpoint, Felix compares the unrecoverable costs of both options. “If you can rent for less than that, renting may be a sensible financial decision,” Felix writes on the PWL website. And if it’s cheaper to rent, investing the difference elsewhere could be higher risk, but also higher reward.

For those who opt to continue renting for now — or forever — Felix would remind them that doesn’t mean you can’t freshen up a rented space to meet your specific needs. And on top of that, sometimes unrecoverable costs are worth it.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 7. in CA

Canada Latest News, Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Cisco buying Splunk for $28B: CFO tells YF why it's a great fitCisco (CSCO) is buying cybersecurity firm Splunk (SPLK) in a deal valued at around $28 billion. Cisco says the deal will 'accelerate' the company's 'business transformation' to becoming one with more recurring revenue.  Cisco aims to venture further into the AI market through the deal. According to CFO Scott Herren, 'there's also an opportunity for us to build AI into our products and to enable our customers to leverage AI, and that's the real opportunity here,' as Splunk's data source combined with Cisco's 'security telemetry' presents a potential synergy. Yahoo Finance Executive Editor Brian Sozzi interviews Cisco's CFO, Scott Herren, to discuss the details of the Splunk deal, Cisco's objectives in acquiring the company, and their confidence in the acquisition being an excellent match. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Why this money manager is buying more shares of Premium Brands and trimming StarbucksJames Telfser of Aventine Investment Counsel uses a ‘core and explore’ approach to investing
Source: globeandmail - 🏆 5. / 92 Read more »

Why traders aren't buying the Fed's 'higher-for-longer' visionIt's a now-familiar dance: Federal Reserve officials signal to the world that interest rates are not dropping anytime soon. Financial markets respond with bets to the contrary. Forecasts published on Wednesday by the U.S. central bank showed that a majority of its policymakers see the Fed's benchmark overnight interest rate ending this year at 5.6%, which implies one more interest rate hike in the next three months.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Why traders aren't buying the Fed's 'higher-for-longer' visionBy Ann Saphir (Reuters) - It's a now-familiar dance: Federal Reserve officials signal to the world that interest rates are not dropping anytime soon.
Source: SaltWire Network - 🏆 45. / 63 Read more »

Why traders aren't buying the Fed's 'higher-for-longer' visionKitco News collects and features the top financial, economic and geopolitical news from around the world. Kitco's aggregated sources include some of the top newswires in the world including the Association Press, Canadian Press, Japanese Economic Newswire, and United Press International.
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »

Litecoin: Why a buying spree is not enough for a LTC reboundThe switch to buying significant quantities infers that HODLers are confident in LTC’s price action. However, the coin needs to meet certain conditions.
Source: CryptoAmb - 🏆 22. / 68 Read more »