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OWN TO INVEST
(mortgage payments and other ownership costs)
Closing Costs
$30,000
Down Payment (20%)
$200,000
Monthly Expenses
(1% of purchase price/12)
$833
Monthly Cash Outflow of Ownership
$5,510
RENT TO INVEST
(swapping ownership costs for stock investment
with investment insurance)
Initial Investment in Stock Market
$230,000
Investment Insurance Premiums per month
$1,031
Monthly Cash Outflow of Renting
$5,510
Here's the Results!
Wealth Accumulated...
Home Appreciation | Owning | Renting | Winner | Advantage |
|---|---|---|---|---|
1.0% | $1,282,432 | $3,215,232 | Renting wins | +$1,932,800 |
2.0% | $1,640,606 | $3,215,232 | Renting wins | +$1,574,626 |
3.0% | $2,093,778 | $3,215,232 | Renting wins | +$1,121,454 |
4.0% | $2,665,836 | $3,215,232 | Renting wins | +$549,396 |
Break-even (4.78%) | $3,215,232 | $3,215,232 | TIE | +$0 |
5.0% | $3,386,355 | $3,215,232 | Owning wins | $-171,123 |
6.0% | $4,291,871 | $3,215,232 | Owning wins | $-1,076,639 |
7.0% | $5,427,433 | $3,215,232 | Owning wins | $-2,212,200 |
Based on the above, how high do you need annual home appreciation in Canada to be for you to break-even owning?
How realistic is that number in 2026?
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