go through Cathy Palace Castle
The traditional argument is that buying a home can build long-term equity and stability, and rents can provide flexibility and less upfront costs. But can rent become a viable option as home ownership becomes an out of reach dream for many young Canadians?
Alex Avery, author of the wealthy renter, thinks so.
“Everyone’s needs will change over time, but I still believe that rent is a good choice,” he said.
Although rental prices have soared since their publication in 2016, Avery said rents are still cheaper and have less risk than buying.
“People compare mortgage payments to monthly rental payments, but mortgage payments don’t start paying the full cost of home ownership,” he said. These fees may include notarization fees, taxes on the board of real estate brokers and specific areas, as well as ongoing mortgage interest, property taxes, insurance, and various maintenance and repair costs.
At the time he said, what he was talking about was the “speculative bubble” in the real estate market, and he said Avery was inspired to write his book because he said his view on home ownership was “easy savings”, especially in urban centers such as Toronto and Vancouver.
“[Young Canadians] When mathematics never makes any sense, it is forced to buy an apartment. ” he said.
Vancouver real estate agent Owen Bigland’s calculations depict different pictures. Bigland said the average monthly rent for life renters now hovered around $2,800, and life renters could spend at least $1.3 million at the age of 65 (not considering rent increases or inflation).
“And you can show zero for this. Where is the savings here?” he asked.
Even if monthly rents are cheaper than mortgages, Bigland says many Canadians may spend any savings rather than investing and adding wealth.
“Many Canadians don’t have as much discipline as possible to save their time,” said Sebastien Betermier, associate professor at McGill University.
Rents make up at least one-third of household spending, and homes make up 70 to 80% of homeowners’ wealth portfolio, and Batemill says renters and homeowners are at great risk.
The latest data from the Healthcare Survey on Ontario’s Pension Plan and Abacus Data shows this. More than a third of Canadians report savings less than $5,000, while homeowners increasingly rely on their own equity to fund pensions.
For this reason, Bigland preached to home ownership. He encourages cutting your mortgage and building interests so that you can benefit from any future price appreciation in the future.
“The only real cash shelter we have in Canada is the primary residence,” he said.
In other words: “You are essentially renting [the home] Betmeer said.
However, Avery didn’t buy this argument.
“It’s a safer investment than other investments,” he said. “In many places, home prices fall and the employment outlook changes over time.”
As an alternative to relying on your home as an investment, Avery recommends putting your money into RRSP, TFSA and FHSA, which does not necessarily need to be used for home purchases. “You can also understand indexed ETFs. There are many different ways to invest your money,” he said.
Avery himself has gone home ownership and he believes buying is a bad decision, but warn it if you use it as an investment vehicle.
“That’s confusing two different goals,” he said. “One is self-placement and the other is wealth generation.”
But Bigland also wrote a book about real estate and stock investments, which he said you should do at the same time. He agrees that renting a home makes sense in some cases, such as if you expect a job to change, but if you can commit to a location of eight to ten years, you should consider buying.
He advises first-time home buyers to start with old buildings that are almost public transport, usually sitting on valuable land. “You might have a developer [buy] He said: “In 10 or 15 years, this could be your exit strategy.
Visited once today, visited once today
Alex Avery Consumer Finance reminds home buyers and renters Homeowners Real Estate Real Estate Rentals and buyers
Last modified: August 19, 2025
