Renting vs. Buying (Minimum downpayment) in 2025 : What makes sense in Canada

[@EshwarHi]

Hi Parth, Nice analysis! However, you missed one point! Ever since I started investing in the US, the unrecoverable cost of owning a house (interest, tax, and maintenance) was always lower than the rent from year 1. Sometimes, the entire mortgage used to be lower than the rent + the house values were steady or appreciating at a modest rate of 1-2%. but, in the last five years, house prices have doubled due to a 30-40% increase in the money supply! Thanks to stupid governments. Now, If monetary policy tightens and the supply does not increase at the same rate, this could impact the stock market, jobs, and real estate as well. In my opinion this is a last minute of seller market in case you want to get rid of any non performing real estate assets.

[@ParthSoniRE]

I am glad you liked the video, you are absolutely right investing in US makes more sense depending upon the region you select (if we eliminate last 6-7 yrs in Canada). In terms of Canada I think many sellers want to get rid of their properties but those who bought after 2021 it may not makes sense financially, if someone purchased back in 2010 to 2015, they will have decent equity on hold and we will see how all the new immigration and mortgage rules plays out in coming years.