QA SERIES: Buying vs. Renting in Today's Market

07 September 2017
Life and the City

This blog post is the first of a four-part series in which we address the various questions or concerns we've been hearing a lot about in recent months.

Have a burning question about the Toronto market, real estate in general, or about our Team? Ask us!

Here's a question you've likely considered, or you may know someone who is currently debating the issue:

Is it best to rent or buy in Toronto today?

Yes, we are real estate agents, so you probably expect us to say, "Buy". And you wouldn't be wrong...but hear us out.

Looking at the market in Toronto right now, if you purchased a 1 bedroom condo for $400,000, at an interest rate of 3.09% (3 year fixed), and a down payment of 10%, your monthly mortgage rate would be approximately $1,720. Add $375 in condo maintenance fees, and that would bring the total monthly cost to approximately $2,095*, 

Is this close to what you're paying in rent?

If you were to purchase, you would be paying down your own mortgage every month, instead of paying your landlord's mortgage! Wouldn't you rather be building equity in the Toronto market? Our homes will continue to be our biggest growing asset!

While the Toronto real estate market is cooler than it was in the spring, these conditions are not expected to last. Now is an ideal time to purchase a property if you want to get the best value possible!

 

 

*This is just one scenario. We would be happy to crunch the numbers and give you an exact breakdown for a specific property.