I put alot of time, calculations, and thought into the two-part post on the ol’ “rent vs. buy” debate. I’ve been known to suffer from “verbal diarrhea”, preferring to write essays when perhaps my point could be made more succinctly. Case in point: I told DH about my posts and after laying out all the points I made he managed to summarize the whole thing in one sentence.
When rents are much lower than prices, it’s better to rent. When rents approach prices, it’s better to buy.
Right now, in our local market, rents are much cheaper than the equivalent monthly payment (assuming a 10 – 20% downpayment), so we’ll sit and wait. Rents are slowly climbing up (supposedly less people are buying) and prices may be on the verge of falling (sales to listings ratios are dropping), so we’ll hang in there until the magic formula is fulfilled.
[btw, for my US friends, Coles notes are the Canadian equivalent of Cliff notes]