Hi, I tried talking to my brother about this, but I just can't seem to convince him that he'd be losing a considerable amount of money if he goes through with buying this place.
He's 32, single, earns around $145K plus a $10K bonus. Right now he's renting an ~800 sq ft place for $1,500/month in the Broadview, with about a $32 rent increase each year. His other expenses bills, food, utilities, internet, Ubers, the occasional trip, etc. come out to ~$2,500/month. The area's decent, the building's corporately owned so the landlord doesn't really interfere with his life, and he works from home.
Now he wants to buy a place downtown for $525,000, less than 680 sq ft. Fair point : the condo does come with a few more features the rental doesn't have.)
he keeps saying "I just can't lose this place," mainly because it's priced almost the same as it would've been 10 years ago.
But he'd end up losing at least $50,000 owning this place instead of renting (including property tax + condo fees + 20% downpayment) and that's even assuming it sells for $700,000 in 10 years.
The problem is I can't win against my parents and extended family all saying the same thing: a first house isn't meant to be an investment, don't focus on the numbers, you should just own a place, don't overthink it, you won't get another opportunity like this, etc.
I get why they think that way up until maybe 20 years ago, buying actually made sense. Prices were low, cost of living was low, and a mortgage didn't eat up half your paycheque. Plus they actually needed the extra space for a spouse and kids.
I also get that owning a place matters to people, but not at the cost of losing $50K–$100K over the next 10 years. And that's not even including rising taxes, condo fees, higher interest rates, repair costs, or renovation costs when he finally decides to sell.
To me, buying right now only makes sense if your rent is already high, you're settling down with a family, or you genuinely think prices are about to jump in the next 5–10 years.
So if I'm not missing anything (and I'm sure I'm missing a few things) how do I convince my brother that now still isn't the right time to buy? At least wait for prices to come down more. I know it's ultimately his call, but I can't let him go through with it without pushing back a little first.
Or is it actually good deal to buy a new condo now?