Renting vs. Buying
Is buying a place really worth it?
That’s how much real estate equity you could potentially build up in 5 years if you were to buy your own condo instead of renting one.
Rental prices have been soaring over the past 2+ years, with an average 1-bedroom now going for $2,260 in Toronto.
It’s true that a big portion of the mortgage payments go towards paying off the interest but in the case of renting 100% of your payments go towards someone else’s mortgage.
Given the current market, you could pay $135,600 for rent and essentially never see that money again or you could pay $170,760 for your mortgage and condo fees but have $168,400 in equity in 5 years.
The cost of renting
The cost of buying and your equity