THEVAULT

Renting

Buying

Ownership Costs & Timeline

Maintenance: 1% of $700,000 = $583/mo — industry standard is 1% annually.

Vancouver Appreciation History

Lifetime

6.5%

per year

20-Year

5.8%

per year

10-Year

5.2%

per year

5-Year

4.8%

per year

Source: REBGV, CMHC. Past performance does not guarantee future results.

10-Year Projection

Buying Wins

Ownership builds more wealth

Total Rent

$343,916

Equity Built

$604,741

Property in 10yr

$940,741

Break-Even

Year 1

Down Payment$140,000
Monthly Ownership$4,421
Monthly Rent$2,500
Monthly Savings (renter)$1,921
Appreciation Gain+$240,741

If Renting: Invest the Savings @ 5%

A renter keeps the $140,000 down payment + invests $1,921/mo savings over 10 years.

TFSA

$478,450

tax-free

Non-Registered

$410,760

after capital gains

Capital Gains Tax (Non-Registered)

Investment growth$338,450
Taxable portion (50% inclusion)$169,225
Tax owing (~40% marginal rate)-$67,690

In Canada, only 50% of capital gains are taxable. If your investments are in a TFSA, you pay zero tax on gains. Non-registered accounts are taxed at your marginal rate on the 50% inclusion. TFSA contribution room is $7,000/yr (2024+).

Wealth Comparison at Year 10

Buyer (equity)$604,741
Renter (TFSA)$478,450
Renter (taxable)$410,760

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