According to the New York Times, if you were to purchase a home for $250,000 with 5% down and home prices were to increase only 2% per year, you would be ahead financially after just two years (compared to a similar rental). After six years, you would have saved more than $40,000.
See for yourself by using this tool: nytimes.com/interactive/business/buy-rent-calculator.html
If we look at Kelowna real estate and rental market, the benefits of owning the house are countless. Please have a look at this chart below:
The assumptions that I used for this calculation are: rent for small studio or basement apartment - $1000/monthly, 1 bedroom condo - $1300, 2 bedroom condo - $1500, small 2 bedroom + den house - $2000, 3 bedroom house - $2500; interest rate on investments - 4%.
If you’re ready to learn more about home ownership, please contact me to set up a no-obligation consultation.
Lake Okanagan Realty Ltd.
506 Doyle Avenue