Renting vs Buying

Whether relocating to the Central Fraser Valley, starting out on your own or downsizing – renting an apartment makes economic sense expensive to buy, costly to maintain and time-consuming.

Today’s cost comparison of owning your home versus renting an apartment with Abbotsford Apartments looks something like this:

BUYING a Condo
Two Bedroom 987 sq ft
Value: $215,600*
vs. RENTING an Apartment
Two Bedroom 1000 sq ft
$875 per month
One Time Cost
(Canadian dollars)
One Time Cost
(Canadian dollars)
Minimum 5% down payment $10,780.00 $437.50 (Refundable Security Deposit)
Home inspection 350.00 0.00 not required
Closing costs 750.00 0.00 not required
Property purchase tax** 2,312.00 0.00 not required
CMHC mortgage fee 2,500.00 0.00 not required
TOTAL
One Time Cost
$16,692.00 $437.50 Refundable
Loan – Mortgage $204,820.00 $0.00
Monthly Cost Monthly Cost
12 payments /yr @ 3.69%
over 25 yrs
$1,043.26 $875.00
Strata fee 215.53 0.00 not required
Home maintenance 25.00 Included in rent
Heat 75.00 Included in rent
Water Included in strata fees Included in rent
Parking – 1 stall Included in purchase 15.00
Electricity 50.00 30.00
Property tax/month 140.53 0.00 not required
TOTAL
Monthly Cost
$1,549.32 $920.00

One Year Analysis

If you bought this condo one year ago for $215,600.00 and sold it for the same price a year later (which MLS confirms the condo prices per square foot in Abbotsford are the same as they were one year ago) you would have:

FEES
Closing Costs $750.00
Commission $9,890.00
TOTAL Fees 10,640.00
Principal Paid Down $5,112.78
Balance due to bank for mortgage $29,000.00

Alternatively, if you had rented with Abbotsford Apartments during the year you would have been able to save these costs.

Share

Marketing by WMSH | Website by Thinksite