Summary of results

Full methodology

Methodology:

Rentvsown.ca compares the total amount of net $ spent, renting vs. owning, over a period of time chosen by you.

Advanced questions are pre set to Greater Vancouver market numbers.  It’s a good idea to change these to some ‘what if’ scenarios.

Keys questions to think about: How long you might live there / Interest rate / Home value change / Opportunity gain – these factors have the largest influence on the results.

Renting:

Rent is increased by a % per year.

Opportunity gain means: that if you took you down payment + strata fees + property tax + buying closing cost + maintenance/renovation cost & the difference between a gross monthly mortgage and monthly rent and instead of buying, invested it elsewhere, what return may you get on that money.

Rent – Opportunity gain = net rent $

Owing:

Mortgage interest: calculates the interest only portion on a mortgage.

Strata fee, calculating the strata fee per month the amount of time that is chosen to live there.

Property tax, estimated @ % per year of your properties value.

Buying closing costs:  estimation of additional fees when purchasing a property such as: property transfer tax, lawyers fees, strata move in fee & property inspection fee.

Selling closing costs:  estimation of additional fees when selling a property such as:  selling commission, lawyer’s fees & property tax adjustment.

Maintenance / renovation: allowing for a % of a home value per year for repairs and renew.

Home value increase: hopefully a home will increase in value (there has never been a ten year period where one has not in Greater Vancouver) each year, calculating a % of the home’s value each year for the amount of time you’ve chosen to live there.

Interest + Strata + Property Tax + Buying Closing + Selling Closing + Maintanance – Home Value Increase = net owning $

The down payment and principle portion of a mortgage will come back when a home is sold (forced savings).  Important to note that a mortgage term, for example a five year term will have penalties if it is paid back before the term end.

Questions / comments / get a copy of your results here

Your rent vs own financial scenario will be on it’s way to you….

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