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Want to see an actual Rent Vs. Buy comparison?
Click here.
Please Note: The default values below
are comparing the rental of a sample condo to the same condo if purchased. When
using this calculator you should try to compare properties of the same type and
value.
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Buy? |
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Rent? |
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Rent & Invest? |
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Purchase Price |
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Monthly Rent |
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Down Payment |
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Security Deposit
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CMHC Fees |
3,375.00
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Closing Costs (Legal, etc.) |
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Other One Time Fees |
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New Home? |
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Annual Appreciation (%) |
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Return on Investment (%) |
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Annual Property Taxes |
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Monthly Condo Fees |
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Monthly Utilities |
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Monthly Utilities |
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Monthly Insurance |
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Monthly Insurance |
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Loan Term (years) |
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Interest Rate (%) |
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Keep house for (years) |
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Rent for (years) |
10.00
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Inflation Rate (%) |
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Rent Inflation (%) |
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Sales Commission (%) |
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Final Property Value |
232,945.41
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Total Upfront Costs |
16,400.00
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Total Upfront Costs |
2,200.00
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14,200.00
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Monthly Loan Payment |
824.60
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Monthly Rent Payment |
1,100.00
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Monthly Cash Out |
1,441.27
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Monthly Cash Out |
1,130.00
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311.27
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Total Spend |
189,352.19
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Total Spend |
135,600.00
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Total Cash After Sale |
118,339.95
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Total Cash Invested |
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90,058.09
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Are you considering taking the next step? Not sure if renting
or buying best suits your needs or is the right direction for you? You hear from
everyone you know that renting is just like throwing away money and buying is
the right thing to do. For the most part, they’re right, but is it right for
you? One must first consider factors such as length of time: If one’s plan is
only to move in for a few years, this could be a mistake when considering all
the costs involved in selling and buying a home. If someone is considering
living in their home for 15 or more years, the costs are amortized over a longer
period of time and look more favorable.
Take the time to review the ‘Pros and Cons’ and try our mortgage
calculator to help quantify your decision.
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Option
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Pros
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Cons
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Renting
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Other costs may be included such as heat, electricity, and
cable
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Less up-front cash needed
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Less maintenance worries; landlord will usually take care of
most problems.
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When lease is up, you can move on
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Lower insurance costs
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Buying
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More variable costs (heat, electricity, and water/ sewage)
- The cost of maintaining the home is yours
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May need
to borrow to pay for asset
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High upfront costs - A large initial down payment is usually
required.
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Higher insurance costs
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