The Rational Reminder Podcast | Renting Versus Buying A Home In Canada (2005-2024) | Rational Reminder 323 @rationalreminder | Uploaded September 2024 | Updated October 2024, 21 hours ago.
Meet with PWL Capital: calendly.com/d/cpws-jyp-znp
Is renting just “throwing money away,” or could it be the smarter financial choice? In this episode, we dive deep into one of the most debated topics in personal finance: renting versus owning a home. In our conversation, we discuss the nuances of renting versus owning, the hidden costs of buying a home, and the importance of saving discipline. Tuning in, you’ll discover how emotional biases may inflate real estate prices and how societal pressures influence housing decisions. Then, we shift our focus to a listener's question about interest rates and bonds. Dan explains how bond prices and yields work inversely and delves into the concept of bond duration. He also breaks down how long and short-term bonds react to interest rate changes and why the Bank of Canada’s influence on bond markets may not always be straightforward. Join us as we investigate the pros and cons of renting versus buying and how to leverage bonds effectively in a dynamic interest rate environment!
Timestamps:
0:00:00 Intro
0:04:23 Main Topic: Buying vs Renting a Home in Canada
1:09:33 Ask the Spud
1:23:10 Aftershow
Links From Today’s Episode:
Meet with PWL Capital: calendly.com/d/3vm-t2j-h3p
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — https://x.com/RationalRemind
Rational Reminder on TikTok — tiktok.com/@rationalreminder
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — https://x.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — https://x.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfp
Mark McGrath on X — https://x.com/MarkMcGrathCFP
Dan Bortolotti on LinkedIn — linkedin.com/in/dan-bortolotti-8a482310
Canadian Couch Potato — canadiancouchpotato.com
Future Proof Conference — futureproofhq.com
CMHC (Canada Mortgage and Housing Corporation) Rental Market Survey Data — cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/housing-data/data-tables/rental-market/rental-market-report-data-tables
Episode 196: Sebastien Betermier — rationalreminder.ca/podcast/196
Episode 308: Dan Bortolotti — rationalreminder.ca/podcast/308
Statistics Canada — statcan.gc.ca
Bank of Canada — bankofcanada.ca
National Council of Real Estate Investment Fiduciaries (NCREIF) — ncreif.org
REALTOR.ca — realtor.ca
Kevin Prins — bmoetfs.ca/specialists/kevin-prins
BMO Canadian ETF — bmoetfs.ca
Financial Planning Association of Canada — fpassociation.ca
Papers From Today’s Episode:
‘Assessing High House Prices: Bubbles, Fundamentals and Misperceptions’ — aeaweb.org/articles?id=10.1257/089533005775196769&ref=josephnoelwalker.com
‘Lessons from Over 30 Years of Buy versus Rent Decisions: Is the American Dream Always Wise?’ — doi.org/10.1111/j.1540-6229.2011.00321.x
‘Perception of House Price Risk and Homeownership’ — nber.org/papers/w25090
‘Owner-Occupied Housing as a Hedge Against Rent Risk’ — doi.org/10.1093/qje/120.2.763
‘To Rent or Buy? A 30-Year Perspective’ — financialplanningassociation.org/article/journal/MAY18-rent-or-buy-30-year-perspective
‘Are Renters Being Left Behind?: Homeownership and Wealth Accumulation in Canadian Cities’ — hdl.handle.net/2429/50413
‘The Life-Cycle Effects of House Price Changes’ — philadelphiafed.org/-/media/frbp/assets/working-papers/2005/wp05-7.pdf
‘Depreciation of Housing Capital, Maintenance, and House Price Inflation: Estimates From a Repeat Sales Model’ — doi.org/10.1016/j.jue.2006.07.007
‘Characteristics of Depreciation in Commercial and Multifamily Property: An Investment Perspective’ — doi.org/10.1111/1540-6229.12156
‘Homeownership and Psychological Resources Among Older Adults: Do Gender and Mortgage Status Moderate Homeownership Effects?’ — doi.org/10.1177/08982643211029174
Meet with PWL Capital: calendly.com/d/cpws-jyp-znp
Is renting just “throwing money away,” or could it be the smarter financial choice? In this episode, we dive deep into one of the most debated topics in personal finance: renting versus owning a home. In our conversation, we discuss the nuances of renting versus owning, the hidden costs of buying a home, and the importance of saving discipline. Tuning in, you’ll discover how emotional biases may inflate real estate prices and how societal pressures influence housing decisions. Then, we shift our focus to a listener's question about interest rates and bonds. Dan explains how bond prices and yields work inversely and delves into the concept of bond duration. He also breaks down how long and short-term bonds react to interest rate changes and why the Bank of Canada’s influence on bond markets may not always be straightforward. Join us as we investigate the pros and cons of renting versus buying and how to leverage bonds effectively in a dynamic interest rate environment!
Timestamps:
0:00:00 Intro
0:04:23 Main Topic: Buying vs Renting a Home in Canada
1:09:33 Ask the Spud
1:23:10 Aftershow
Links From Today’s Episode:
Meet with PWL Capital: calendly.com/d/3vm-t2j-h3p
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — https://x.com/RationalRemind
Rational Reminder on TikTok — tiktok.com/@rationalreminder
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — https://x.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — https://x.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfp
Mark McGrath on X — https://x.com/MarkMcGrathCFP
Dan Bortolotti on LinkedIn — linkedin.com/in/dan-bortolotti-8a482310
Canadian Couch Potato — canadiancouchpotato.com
Future Proof Conference — futureproofhq.com
CMHC (Canada Mortgage and Housing Corporation) Rental Market Survey Data — cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/housing-data/data-tables/rental-market/rental-market-report-data-tables
Episode 196: Sebastien Betermier — rationalreminder.ca/podcast/196
Episode 308: Dan Bortolotti — rationalreminder.ca/podcast/308
Statistics Canada — statcan.gc.ca
Bank of Canada — bankofcanada.ca
National Council of Real Estate Investment Fiduciaries (NCREIF) — ncreif.org
REALTOR.ca — realtor.ca
Kevin Prins — bmoetfs.ca/specialists/kevin-prins
BMO Canadian ETF — bmoetfs.ca
Financial Planning Association of Canada — fpassociation.ca
Papers From Today’s Episode:
‘Assessing High House Prices: Bubbles, Fundamentals and Misperceptions’ — aeaweb.org/articles?id=10.1257/089533005775196769&ref=josephnoelwalker.com
‘Lessons from Over 30 Years of Buy versus Rent Decisions: Is the American Dream Always Wise?’ — doi.org/10.1111/j.1540-6229.2011.00321.x
‘Perception of House Price Risk and Homeownership’ — nber.org/papers/w25090
‘Owner-Occupied Housing as a Hedge Against Rent Risk’ — doi.org/10.1093/qje/120.2.763
‘To Rent or Buy? A 30-Year Perspective’ — financialplanningassociation.org/article/journal/MAY18-rent-or-buy-30-year-perspective
‘Are Renters Being Left Behind?: Homeownership and Wealth Accumulation in Canadian Cities’ — hdl.handle.net/2429/50413
‘The Life-Cycle Effects of House Price Changes’ — philadelphiafed.org/-/media/frbp/assets/working-papers/2005/wp05-7.pdf
‘Depreciation of Housing Capital, Maintenance, and House Price Inflation: Estimates From a Repeat Sales Model’ — doi.org/10.1016/j.jue.2006.07.007
‘Characteristics of Depreciation in Commercial and Multifamily Property: An Investment Perspective’ — doi.org/10.1111/1540-6229.12156
‘Homeownership and Psychological Resources Among Older Adults: Do Gender and Mortgage Status Moderate Homeownership Effects?’ — doi.org/10.1177/08982643211029174
