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.
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