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Home Rental vs Purchase Comparison

Owning a home is a goal for many Albertans and historically, in the long run, home ownership is a good idea. There are many cases, however, where home ownership has resulted in the home owners’ bankruptcy. Our Cameron-Okolita Inc. Rental / Purchase Comparison lets you quantify the costs of ownership in a poor or slow real estate market, and the benefits in a brisk or buoyant market.


Home ownership is a huge financial commitment and the purchase of the property is only the first step. There are property taxes, heat, light, and utilities, insurance, draperies and furnishings, repairs and maintenance, landscaping, including water, fertilizer, fuel and the cost of a lawnmower, and other tools. There are many situations where the fees associated with maintaining the home, i.e. condo fees or lot rent are disproportionate to the mortgage payment, or where interest rates are prohibitive or onerous, i.e. rates are higher than the current market rate or lending placement fees or brokers’ commissions are large.

If you are considering the purchase of a new home, or having one built for you, there are significant additional costs such as fencing, a deck, landscaping, and draperies to consider. As these costs could easily exceed $10,000.00, you should add an estimate of these costs to the purchase price of the home for purposes of your comparison.

Bankruptcy or no Bankruptcy, if vacancy rates are high, and rental rates are low, or job prospects and job stability are uncertain, you may be better safe than sorry. Renting, and the flexibility it can offer, may be the best option at certain times in one’s life.