The Indelible Bonobo Experience

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Tim Lemieux is seen here with a backdrop of apartment and condominium complexes in downtown Toronto, Ontario Thursday March 20, 2014. Lemieux, 40, always thought he’d buy a home in Toronto; but he’s done some math and decided that continuing to rent rather than buying is his best bet. (via Financial Post)
But even with the down payment, he calculated that he would be almost doubling his monthly expenses with the mortgage, condo fees and property taxes; he now rents a one-bedroom apartment on the subway line for $900.
“It seemed like I was tying a lot of money down with not much of a living benefit or quality of life benefit,” says the 40-year-old Toronto resident who works at an insurance company. “I’ve decided I’ll never buy in Toronto. I invest and got a good financial advisor instead.”
People say that when you grow up, you buy a home. Who are these “people?” Your married friends, your parents and other grown-ups who ask: “Don’t you want to own something other than a bike? Aren’t you sick of putting money into your landlord’s pocket?”
“In some geographies, the people who own the property and are renting it to you, are renting it to you on a break-even basis or possibly even a loss; basically someone is subsidizing your living.”
Every time you buy a home, there are associated costs: lawyer fees, land-transfer taxes, moving costs, etc. Mr. Kaufman estimates that the total cost of buying and selling a home approaches 10% of the purchase price. “In my mind, the perfect time to buy is when you’re buying a home you expect to live in for a long time.”
Renting represents mobility. For those with wanderlust or those who plan to move for work, renting suits your nomadic, adventure-seeking lifestyle. Renting also comes with fewer responsibilities. With a home, when something breaks, you have to fix it; you can’t always anticipate the expense either — anyone who’s had water in her basement or raccoons ripping away roof shingles can attest to the headache. You’re also less likely to spend money on sprucing up or upgrading your rental unit.
“It frees up money for living and travel, rather than being sunk into property taxes or maintenance fees,” Mr. Lemieux says.

Tim Lemieux is seen here with a backdrop of apartment and condominium complexes in downtown Toronto, Ontario Thursday March 20, 2014. Lemieux, 40, always thought he’d buy a home in Toronto; but he’s done some math and decided that continuing to rent rather than buying is his best bet. (via Financial Post)

  • But even with the down payment, he calculated that he would be almost doubling his monthly expenses with the mortgage, condo fees and property taxes; he now rents a one-bedroom apartment on the subway line for $900.
  • “It seemed like I was tying a lot of money down with not much of a living benefit or quality of life benefit,” says the 40-year-old Toronto resident who works at an insurance company. “I’ve decided I’ll never buy in Toronto. I invest and got a good financial advisor instead.”
  • People say that when you grow up, you buy a home. Who are these “people?” Your married friends, your parents and other grown-ups who ask: “Don’t you want to own something other than a bike? Aren’t you sick of putting money into your landlord’s pocket?”
  • “In some geographies, the people who own the property and are renting it to you, are renting it to you on a break-even basis or possibly even a loss; basically someone is subsidizing your living.”
  • Every time you buy a home, there are associated costs: lawyer fees, land-transfer taxes, moving costs, etc. Mr. Kaufman estimates that the total cost of buying and selling a home approaches 10% of the purchase price. “In my mind, the perfect time to buy is when you’re buying a home you expect to live in for a long time.”
  • Renting represents mobility. For those with wanderlust or those who plan to move for work, renting suits your nomadic, adventure-seeking lifestyle. Renting also comes with fewer responsibilities. With a home, when something breaks, you have to fix it; you can’t always anticipate the expense either — anyone who’s had water in her basement or raccoons ripping away roof shingles can attest to the headache. You’re also less likely to spend money on sprucing up or upgrading your rental unit.
  • “It frees up money for living and travel, rather than being sunk into property taxes or maintenance fees,” Mr. Lemieux says.
Many investors who bought units intending to flip them on completion, or rent them out for a few years, have also been shocked to find they thought they had pre-approvals, but they are no longer being honoured in the wake of tighter lending rules imposed by Ottawa. Toronto real estate lawyer Oksana Miroutenko has had two cases in the last few months where clients took interim occupancy of their new condos, only to find out weeks later, when final payments were due, that they couldn’t meet new, more stringent, financing conditions. (via Pre-construction condo buyers ‘scrambling’ to close deals | Metro)

Many investors who bought units intending to flip them on completion, or rent them out for a few years, have also been shocked to find they thought they had pre-approvals, but they are no longer being honoured in the wake of tighter lending rules imposed by Ottawa. Toronto real estate lawyer Oksana Miroutenko has had two cases in the last few months where clients took interim occupancy of their new condos, only to find out weeks later, when final payments were due, that they couldn’t meet new, more stringent, financing conditions. (via Pre-construction condo buyers ‘scrambling’ to close deals | Metro)

Manulife has rescinded a promotional offer it had been offering consumers of a record-low five-year mortgage rate after Finance Minister Jim Flaherty indicated his displeasure with the lender’s decision. On Tuesday, Manulife Bank dropped its posted interest rate for a five-year fixed-rate mortgage to 2.89 per cent. That’s the lowest posted rate for that time frame the company has ever offered. But in an about-face later in the day, the company pulled the offering and reverted to its former rate above three per cent.