Montreal DT Condo: Balanced Rent vs Buy

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As of Jan 2025, condo L'Avenue (1050 Rue Drummond) in Montreal downtown presents a balanced market rent-or-buy at a 9-year crossover. (at $470,000 or $1,950/mo)

Last update Jan 2025
  • Scenario 1: Cost of Condo Ownership
  • Scenario 2: Cost of Renting
  • Which One Is Higher (%)

The higher curve shows the costlier option. Using the agent's listing price of MLS 27910572 1050 Rue Drummond #1105.

# Years from Now
Try your numbers:

Enter the total price of the home you're looking for.

A =

Enter the percentage of the purchase price you plan to pay upfront. A minimum of 5% is allowed for mortgages up to $1.5 million (as of December 2024). Paying 20% or more avoids CMHC insurance.

B =

Enter an estimated annual interest rate on your mortgage on home

C =

Enter the monthly cost for condo fees, if applicable.

D =

Enter the estimated monthly cost of maintaining your home, including repairs, landscaping, and other upkeep expenses.

E =

Enter your current monthly rent payment. Annual increase % reflects rising rental costs over time.

F̃ =

Enter the expected annual percentage increase in the home’s value. Appreciation builds equity that offsets the total home-owning cost.

G =

For a more accurate estimation, please enter your marginal income tax rate.

H =
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Time Value Assumptions

Heads Up!

If you're using Cost Basis (cb) for calculating capital gains:

Please be aware that very few countries currently use inflation-indexed cost basis. Double-check your local tax rules before publishing.

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How is Cash Value calculated?

Total cost of homeownership includes CMHC premiums (if applicable), 2024 land transfer taxes (with first-time buyer rebates), 2024 property tax rate, a 25-year mortgage, property maintenance, estimated buying costs, and selling costs. The final cost equals the missed investment value of all buying and ongoing costs minus appreciated home equity, providing a complete financial overview.

Decisions / Expectations

(Expressions are evaluated at Year 0 only.)

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K =
0
L =
M =
Ñ =
O =
P̃ =
Now
∞
Follow Inflation
Q̃ =
Now
∞
Follow Inflation
R̃ =
Now
∞
Follow Inflation

Calculations

(Expressions are evaluated at every year.)

S =
T̃ =
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W =
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