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Is it Cheaper to Rent or Buy in Okotoks?

Real Estate Agent with Royal LePage Benchmark

For rent in OkotoksMarch 19, 2013

Have you ever wondered if maybe you'd be better off buying than renting? I had Mark Herman of Mortgage Alliance run the numbers on buying either a starter home in Cimarron or a two bedroom condo in the Mesa.

Payments on the 2 story home at $305 000 would be 1392 a month ... that is lower than rent of 1800 for the same home. Add in Ptax of 146, utilities of 250, Fire / home insurance of 40 and your monthly total would be $1828 almost the same! Difference of $28 ALL IN! 

Payments on the condo at $220 000 would be $1020  a month P+I plus $318 condo fees plus $125 property tax and $150 for other utilities not covered would be $1613 vs. 1450 For your own condo and stop renting – the numbers are almost the same BUT ADD in the BELOW: This unit is a 2 bedroom. If you had a renter then you can deduct ½ of the mortgage interest for the year and ½ of the condo fees and utilities as it is the cost of running an “investment property” that you happen to live in. So in the end that would save you: $6183 /2 = 3091 + condo fees = 1908 = 4999 tax refund at the end of the year!  Just for having a roommate. $5000/12 = 416 So 1613 – 416 = 1196 a month or $250 / month LESS than renting! 

Now remember in both cases part of your mortgage payment is reducing the principle you owe so in effect it's even better to buy rather than keep renting.

If you'd like more information about a mortgage, feel free to contact Mark at mark.herman(at)shaw.ca. If you'd like help buying a home in Okotoks, contact me!