Not being able to own a home is actually not a bad thing. We do have this peculiar belief in North America that homes are assets. That is just not the case because they will always be taking money out of your pocket through upkeep and taxes even when you've paid off the mortgage. IMO, condos are even worse because you are just buying a box where you have little to no control over it and no ability to increase its value through upgrades.
There is absolutely nothing wrong with renting so long as you're investing your money. You have to do that regardless if you're paying rent or a mortgage.
but homes can be split up and rented out (multiple suites, renting out rooms if needed), and it is one of the very, very few tax free capital gains asset classes out there left in this country.
with regard to condos, i am almost quite they have gone up 50-60% in value in the past 3-4 years. that is a hell of a tax free return if you ask me, especially since 99% of the buyers don't put 100% of the money down when buying one.... making the tax free effective gains more along the lines of 150% return.
of course, none of this will last forever, but neither do gains in the finance markets or any market for that matter.
i would say if someone has 7 figures cash and was investing their money and using the interest money to rent , as per your argument i would say that makes that does would make sense as someone would be living for free per say off the interest to pay for all the rent - but if its a young individual for with 100k in the bank hoping to make 6%-7% annually (and still lose some of the gains to taxes) yet still having to pay 15-20k annually to rent... id make the argument to buy a place, understand the way it numbers works and try renting out some of the rooms or the basement - and grow from there.
i do believe however we are going a little off topic re arguing the differences between diff asset types / strategies.
Sadly youth aren't blessed with the psychological ability to understand long term consequences so just as with any generation it is hard to convince a kid making minimum wage that it is more important to put money away than it is to buy the latest Jordans or a new phone.
i totally hear you. this definitely is a huge hurdle, but not impossible.
This scheme would take a MASSIVE rework of society and jobs, it would probably be easier for an apocalypse to happen and rebuild than to change so many entrenched infrastructures.
will never happen, the corporations are loving it and are killing it more the ever... id also argue the same with the govts.
ie. land transfer tax for a basic home in toronto is like 35 grand, for a nice high end home 6 figures. the gov't while claiming they are trying to help the common person re long term housing affordability , are loving the free tax cash re housing all these years. its crazy how much they much they must have made re land transfer tax alone this past decade.
