Mortgage Payment to Rent Ratios
for USA and Canada
(source: "Buy/rent ratio suggests vulnerability," The Globe & Mail. Published Monday, Oct. 18, 2010 12:15PM)
In reality, it is hard to tell if it's better to rent or buy a home in Canada even though the mortgage payment to rent ratio is 1.85. Unless the mortgage payment shown has been adjusted in some manner, we need to keep in mind that a mortgagee will end up owning the house after a few decades whereas a renter won't own anything. So it's not a simple 1-to-1 comparison. In any case, the chart appears to show that it is better to buy, than rent, homes in USA.
Tags: real estate, Sunday Spectacle