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Real Estate – Rent or Buy?

“… in May, house prices rose 8.6% nationally, and a stunning 25.7% in Vancouver.”

Anyone interested in Vancouver Real Estate … and what Vancouverite isn’t … ought to read thru the August 15, 2011 (print version) of Canadian Business’ Real Estate article ‘Rental Complex‘ by Joanna Pachner, for a great analysis of Renting versus Buying.

For the patient, value buyer, the gap between Vancouver House prices (orange line) versus Rental cost index (yellow line) is startling.

Also check out VREAA Blog Vancouver Real Estate Anecdote Archivist.

Next time?
Risk Management.
Doug Cronk CFA is Manager, Investments for a Canadian Pension Plan
2 Comments Post a comment
  1. Vancouver and Alberta Real Estate prices are out of control. I simply do not see how people are managing to buy 500 square feet of condo for $650 /sf. Or why … when they can rent for 1/2 the price.

    I like the behavioural theme in the article. Interesting how people ‘feel’ if they aren’t a homeowner.


    July 28, 2011
  2. JTN #

    Great article. Thanks for the link. My brother and I both graduated relatively recently. He’s renting a condo for about the same amount it costs to carry carry one mortgage free. He’s saving the difference and I’m sure he’ll come out ahead. Too many people are house rich but have no liquid investable assets.


    July 27, 2011

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