Renting vs buying in Port Alder, by the numbers

"Rent is dead money" is the most repeated line in property, and it is only sometimes true. The honest answer depends on how long you will stay, what you could earn on your deposit, and what the home will cost to keep.

The example

Take a typical two-bed apartment in the Canal Quarter:

• To buy: around $640,000, with a 20% deposit and a 30-year loan at 6.2%.
• To rent: around $3,000 a month for something similar.

The monthly mortgage payment, plus property tax, insurance and the building fee, comes to roughly $4,200. That is more than the rent, so in year one renting is cheaper.

What changes the answer

• Time. Buying costs a lot up front (taxes, fees, moving). Those costs are spread over every year you stay. Below about five years, renting usually wins.
• Price growth. Even modest growth adds up on a large asset. At 3% a year the apartment above gains about $19,000 in year one.
• Your deposit's other life. $128,000 in a savings account or index fund also grows. Count it.
• Flexibility. Renting lets you move for a job in a month. That is worth something real.

Our rule of thumb

If you plan to stay at least five to seven years, have a stable income, and the monthly cost of owning is within about 30% of renting, buying tends to come out ahead.

Use the mortgage calculator on any listing page to try your own numbers, or compare a rental and a sale side by side with the compare tool.