With all the talk of the heated real estate market we are starting to hear more and more about the options of renting a home or condo, instead of owning one.

With Canadian Home ownership rates around 66.50% roughly two-thirds of Canadians are Homeowners.

My thoughts about renting for those who have the option of owning their home verses renting, is that it can be a viable option for some, based on a variety of factors.

As of late, the topic of discussion seems to be, do I try and sell in a high market and rent until the market subsides; and then buy back in when real estate goes on sale?

That’s a tough question and that doesn’t come with an easy answer. It really depends on your personal beliefs and financial situation.

To help in your decision here’s what it will cost you to rent on average throughout Toronto.

• 1 Bedroom condo (450-500 square feet) $1600-$1800 per month. Look to the higher end if parking is needed.
• 1 Bedroom + den (500-700 square feet) $1800-$2300 per month.
• 2 bedroom condo (700-1000 square feet) $2500-$3000 per month
• House rentals vary on size and condition more so but a bare minimum starting point would be $2200 per month + utilities.

Luxury condo rentals of late have seen a surge in demand with monthly rental rates between $4000-$5000/month. Even with the recent proposed rental legislation rental rates are only going to continue to rise. The demand for good housing (including rentals) is on the rise and it will continue to be difficult to find a deal.

Not all decisions to rent are financially based, nor like purchasing a property to live in should it be so. But if that is the reason you are thinking of doing so, carefully think through all of the costs involved and I suspect you will find that owning versus renting in the long term is a much better option.