Eric Skicki

A Closer Look At Renting Vs Owning

rent-or-own

It is no secret that many of the condo units around the Square One area are rented out to tenants. In fact, in 2013, there were over 1746 recorded lease transactions on the MLS system in the City Centre area alone. This does not take into account any privately conducted leases, or lease renewals. Although leasing is a viable option for some, most tenants aspire to be owners one day. Over the years, we have helped many tenants transition from renting to owning a condo in Mississauga. In this blog post, we will break down the cost relating to renting and owning a condo in downtown Mississauga.

 

The Cost Of Renting Vs Owning

In the chart below, we compared the monthly carrying costs of an average priced one bedroom condo in downtown Mississauga. Rent is based on market average of $1,450 per month, and owing is based on a purchase price of $260,000, with $52,000 (20%) down, and at a 3.5% fixed rate amortized over 25 years.

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      2 Comments

      • biased says:

        Huge flaw in your argument is that you expect prices to continue to rise. If prices fall just like they did it the 90s, all of the equity would be wiped out. Just because prices had been going up for past decade doesn’t mean that it would continue indefinitely.

      • Fair point. However, if prices do fall, only those who have to sell will sell. People will need a place to live and rent prices have historically never gone down. If the market does dip I would not be surprised to see rent prices go up even more, making the cost of living in a condo pricey over the long term.

        Of course this is all speculation, and nobody has a crystal ball to predict what will really unfold. Time will tell.

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