Staking a claim in the Canadian housing market has never been this expensive, and it's enough to make some prospective buyers consider renting a long-term home - but is renting going to save money or is buying still worth the investment?
Financial planners say both are viable options, depending on your lifestyle choice and personal discipline.
Today's hot housing market has challenges that, while always present, are especially prominent, says Adrian Mastracci, investment counsel at KCM Wealth Management in Vancouver.
He said common struggles include finding an appealing home and then getting it at an affordable price.
"Today there's more pressure to make your best offer first, and you don't get the chance to come back with a counter-offer, usually," Mastracci says.
"The danger is always that the market gets away on you. If it gets away and prices rise dramatically, as they have in certain locales across Canada, it really hurts when you go and plunk your money down on the table for your first purchase."
According to a recent housing affordability report by RBC Economics, home prices continued rising faster than incomes during the second quarter. B.C. remained the least affordable province, but Alberta's energy boom sent the cost of a two-storey home jumping $28,000 in just three months.
However, even in a torrid market "you shouldn't think this is really going to be the end-all and be-all, your best investment," Mastracci cautions. "It may not be - especially if you buy at a high time."
Over 20 to 30 years most homeowners might get an annualized return of four to six per cent, he estimates.
