MYTH vs. REALITY: "Renting is Always Cheaper Than Buying"

🔴 MYTH: "Renting is the smarter financial move because buying is too expensive."

🟢 REALITY: While renting may seem cheaper in the short term, owning a home builds long-term wealth.

Well, if I had known that talking about renting vs. buying would stir up such strong opinions, maybe I’d start every post with a debate on real estate myths!

Nah.

I actually planned to keep things light this time, but after a few conversations this week, I realized we need to talk about this one myth that just won’t go away…

So, let’s get into it: Is renting really cheaper than buying? Because I have some numbers that might surprise you.

 Every mortgage payment you make is an investment in your future, unlike rent, which only benefits your landlord.

Let’s Talk Numbers:

• The average rent for a one-bedroom apartment in Toronto is around $2,500/month.

• With a pre-construction investment, you could own a 1-bedroom + den in Oakville for $1,500/month with a structured deposit plan.

• Over 5 years, renting costs you $150,000 with zero return, while homeownership allows you to build equity and benefit from property appreciation.

  
  

Real Example: A Home That Pays for Itself

With just $4,000/month and a rentable basement apartment, this property can help cover your mortgage payments!

In Vaughan | 48 Thicket T

 3+1 Bedrooms | 3+1 Bathrooms | Double Garage + 4 Parking Spaces

2000 - 2500 sqft | $1,288,888

2-in-1 Property: Live comfortably and generate rental income

1. Prime Location: Near parks, schools, and shopping

2. Primary Bedroom with Ensuite

   
   

Mortgage Breakdown – $1,288,888 with 20% Down

1. Down Payment: $257,778

2. Loan Amount: $1,031,110

3. Interest Rate: 3% annually

4. Term: 30 years

5. Estimated Payments:

   • Monthly: $4,007

   • Biweekly: $2,003

     
     

Bonus: Rent out the basement and reduce your monthly expenses even more!

Key Takeaway: Renting might feel easier now, but homeownership is the key to financial freedom. With the right strategy, even first-time buyers with moderate incomes can enter the market and start building their future.

What’s your take? Are you ready to stop paying your landlord’s mortgage and start investing in your own future? Let’s talk!

Have you heard of House Hacking? By renting out part of your home—like a basement apartment—you can drastically reduce your monthly mortgage payments or even live for free! Would you like to learn more about how this strategy can help you buy sooner? Let me know in the comments! 👇