The Rational Reminder Podcast Episode 21 – Buying or Leasing: Weighing the Costs of Real Estate Choices.

Welcome back to The Rational Reminder Podcast. Today’s episode is focused on the question of investing in real estate. It is still a common conundrum for investors and even those who may not consider themselves active investors, whether to buy or to rent a property. As you may imagine it is not a very simple issue and the answer does require some serious thought and calculation. But our hosts do their best to lay out some of the most important concerns and factors in trying to find the answer. Before getting into the meat of the episode however, we also look at some general recent news from the money world including developments from Investor’s Group, the market’s downturn and the low year we have all had as well as thinking about Canadian small cap stocks. For all this and more, be sure to tune in!

Key Points From This Episode:

  • The changes Investor’s Group have made to their pricing. [0:01:27.4]

  • The recent downturns in the market. [0:03:04.8]

  • Evolving perspectives and long term measurements on your returns. [0:05:00.2]

  • Looking at the performance of Canadian small cap stocks. [0:09:55.2]

  • Beginning to weigh the costs of owning versus renting real estate. [0:11:13.3]

  • Dropping opportunity costs and changes in income over time. [0:16:15.8]

  • Adjusting your view to your total unrecoverable costs. [0:16:46.4]

  • The biggest advantage of home ownership. [0:18:26.8]

  • Some points from Larry Swedroe that we can all adhere to. [0:20:38.2]

  • Keeping track of your decisions and why you made them. [0:25:41.8]

  • And much more!

 

Tweetables:

 “The problem is a lot of people I don’t think know what to expect. And they often look to people like us to prevent them from that happening.” @cameronpassmore [0:04:26.4]

“Renting is easy to identify as an unrecoverable cost. You pay whatever, $2,000 a month it goes away to your landlord, you get a place to live and that’s it.” @cameronpassmore https://goo.gl/aP7czM of the market of higher expect of return.” @cameronpassmore [0:12:53.7]

Links From Today’s Episode:

Rational Reminder Website — https://www.pwlcapital.com/author/benjamin-felix/

Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/

Benjamin on Twitter — https://twitter.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

Cameron on Twitter — https://twitter.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Rob Carrick — http://www.robcarrick.com/

Investors Group — https://www.investorsgroup.com/en

S&P 500 — https://www.marketwatch.com/investing/index/spx

Ken French — http://mba.tuck.dartmouth.edu/pages/faculty/ken.french/

The Wealthy Renter — https://www.amazon.com/Wealthy-Renter-Choose-Housing-That/dp/145973646X

Larry Swedroe — https://www.etf.com/contributors/larry-swedroe

ETF — http://etf.com/

Warren Buffett — https://www.forbes.com/profile/warren-buffett/

Fama and French — https://www.investopedia.com/terms/f/famaandfrenchthreefactormodel.asp

Tesla — https://www.tesla.com/