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buying and renting a home in Toronto

the journal of Michael Werneburg

twenty-eight years and a million words

I've found an article linking to a calculator for a buy-vs-rent comparison in Toronto. Assuming my current rent stays at roughly where it is for the next thirty years, increasing at 3% while my "return on investment" capability is 0% (reflecting reality at the moment, as I suppose you know) I got a certain total figure spent.

Then I compared that to a mythical $650,000 house (plus the various fixed and variable fees on top of the purchase price, which it provides) that I could buy with a 3% down payment with a 30 year term.

Comparing the two figures as they evolve over the next thirty years: renting is clearly a better deal. It's not even close. By the end of the 30 year period, the renter has saved $1.4M.

Maybe the best bet for us is to keep renting right until we buy a retirement property in rural Japan or Canada.