In Libby Kane’s report for Business Insider
, certified financial planner and XY Planning Network co-founder Alan Moore noted that a significant portion of his professional time is spent talking young adults out of buying residential properties in the present climate.
“Homeownership is a good way to really screw up your finances,” Moore said. “Now, I know it's the American Dream and I know that we've been told that buying a home is cheaper in the long run than renting — but honestly, it’s not always true,” Moore said
He explained that a non-investment home (especially in overpriced Vancouver and Toronto) is a somewhat difficult asset to sell, and the lack of mobility inherent in settling down doesn’t help matters.
“Whenever you want to chase a new job opportunity (or you get laid off and you need to downsize), or you want to move to a different state or life takes an unexpected turn in some way, homeownership tends to tie us down quite a bit,” Moore said.
Self-made millionaire Grant Cardone agreed with the assessment, adding that since a utilized home does not yield revenue every month, it isn’t “a good deal if you have to feed it constantly.”
“Buying a house is for suckers,” Cardone said.
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While home investment volume in Canada’s most active real estate markets has steadily increased in the past few years, a finance industry professional said that young people who are still finding their fiscal bearings should avoid buying houses altogether.