The notion that ownership eliminates housing costs is misguided: houses are more expensive to maintain and generally more for utilities, in addition to property taxes (and possibly condo fees).

I currently rent a 1-bedroom for $750/mo. This is much cheaper than a mortgage payment + condo fees for a comparable unit — but the catch is I probably would never buy a 1-bedroom condo where I live: I’d buy at two-bedroom place, or a small home.

Additionally, I’ve moved 4 times in the past 2 years. That’s not exactly stable enough for home ownership. You can’t just up & go when you have a mortgage (not without headache of either finding a renter while you’re absent or swallowing the mortgage payments even when you’re not there).

People that jump into home ownership don’t do the math. If you’re putting 5% down, you’re going to pay six-figures worth of interest on your mortgage debt. That’s such a shit show. If people just waited 5 more years they could have a six-figure down-payment AND cut the interest down to a quarter of what it would be otherwise. There’s nothing wrong with renting if you’re saving (and investing) the difference.

But money isn’t everything. As I am a single woman focused on my career, renting cuts out the commitment to a place, condo fees, and the extra considerations that have to be made if I were to move for a job, or to a different neighbourhood for personal reasons. Being able to just cut a monthly cheque to my landlord and forgetting the rest makes sense to me now.

Age is also certainly a consideration for most people (not really for us – boy & stepdad are carpenters, cousin and brother are plumbers, dad sells building supplies.. can’t go wrong!). There are a whole slew of things that really should be considered, and an inspection should definintely be done. I think that’s where strata property is really great – if you don’t want to do repairs to the building, or take care of a lawn or anything, strata is great for that. You’d mentioned HOA fees (we call them strata fees here), that they can be so outragous! Another reason we’ll be looking to get a house and not a condo or townhome – though we will get a townhome if we find the right one.

My friend bought a condo and the strata (HOA) fee went up by $200/month after two years – which is just crazy.

Ick, rental restrictions.Krystal pointed out how much better it is for the value of the condo or townhome, which is totally true, but I’m personally freaked out by any building that tells me what I can and cannot do with my own peice of real estate. Most do, as far as rental, pet, parking etc restrictions, and that is the main reason why boy & I are looking for a house specifically, followed by a townhouse if we can’t find a house (and it has to be rental, age, and pet restriction free).

I would personally never buy anything with restrictions like that, probably mainly becuase of my age – I’m young. I could travel. I could decide to upgrade but keep my first property as an income property. Perhaps I’ll have kids. So it would just never swing for me.

I can completely understand the value it adds to the building, which is why we’re trying to avoid strata purchases. So you’re definitely right – it’s a huge consideration!

Not having to pay rent in your golden years is a solid way to decrease your cost of living, however the upfront costs, property taxes and lock-in cannot be discounted. For certain areas, like San Francisco, renting is quite appealing unless you plan to stay in the same house for over 30 years.

This calculator from the New York Times really lays it all out. http://www.nytimes.com/interactive/business/buy-rent-calculator.html

Also if you are buying a condo watch out for HOA fees. This is a big thing I look for as I am ready to buy a condo right now as well. Sometimes I find a place with a low price but HOA fees are ridiculously priced at $400 or $500. That price will only go upwards as well.