Many potential Buyers are currently unsure about whether to buy now or wait. With questions about price drops and impact of tariffs on the market, the decision to rent or buy has become more complicated. In this article, we’ll explore the current market, costs, stability and wealth-building aspects and offer practical decision-making tips.
In this article we are going to do a dive into the current market, costs, stability, wealth building and give you decision making tips.
- The Cost Breakdown
- Renting – the average rental rate in Ontario as of March 2025 is approx. $1923/month for a 1 bedroom unit. In Saugeen Shores, as of February 2025, the average monthly rent was approx. $1661/ month for a small 1 bedroom unit and we have seen 2-3 bedroom homes and apartments listed for $2500-$3500/month. The rental vacancy rate in Saugeen Shores is notably low at 0.5% showing a tight rental market with limited availability. Keep in mind that the vacancy rate will change as there are a few new apartment rental buildings coming to market in the Spring.
- Buying – the average price of a single detached home in Ontario as of January 2025 is approx. $834,050. The average list price in Saugeen Shores as of January 2025 was $759,000. If a house is sold at $759,000, with a 20% down payment, 25 year amortization and a 4% interest rate, the estimated monthly mortgage payment would be $3,205. Buying comes with upfront costs that renting does not, such as down payments and closing costs. Another factor to consider in purchasing a home are property taxes, insurance and maintenance.
- Flexibility vs. Stability
- Renting offers mobility, which appeals to those seeking flexibility. However, rent increases are a risk, especially for units built after November 15, 2018, which are not subject to rent control. The Landlord can increase the rental rate after your first term as much as they would like as opposed the Ontario guideline amount.
- Buying provides stability with predictable payments and the freedom to renovate and customize your space.
- Building Wealth vs. Avoiding Risk
- Homeowners build wealth through equity and appreciation but this must be balanced with the risks of maintenance costs and potential declines in values. Building wealth through real estate is a long term investment. To see positive growth will take a number of years.
- The Canadian economy is facing major uncertainties right now. Most economists are predicting a recession for both Canada and the USA should the Trade War continue. This factor needs to be taken into consideration when deciding to Rent or Buy. There is a risk that home values will drop, interest rates will rise again and jobs may be lost.
- Decision-Making Tips
- Assess Your Financial Health – Review your savings, income stability and debt-to-income ratio to determine what you can comfortably afford.
- Consider Your Long-Term Plans – If you plan to stay in one place for 5+ years, buying might offer better financial benefits.
- Factor in Market Conditions – Research local market trends, interest rates, and economic forecasts before making a decision.
- Calculate the True Cost – For both renting and buying, include costs like utilities, maintenance, and rent increases. Use these Calculators to help: Home Purchase Calculators
- Consult a Professional – Speak with Scott or Samantha or your financial advisor to understand your options better.