I am going to answer this question once and for all:
Buying vs Renting, which costs less?I've written an excel worksheet to solve the question above. What I found is that the answer is different for every case depending on:
- the size of down payment
- the length of amortization
- the interest rate, inflation rate and rate of return
The way to go about it is to find the house/condo that you want to buy, then find a rental property of equal quality. After gathering all the information on mortgage and rent, enter them in the worksheet; and you'll know which method will work out better for you scenario.
Give it a
try!