Young family in Toronto with rising six-figure income faces eternal question: Should they keep renting, or buy a house?
Situation: Couple in costly market wants to know if they should buy or rent and effect on other goals
Solution: Compare costs of rental and ownership assuming equal growth rates and carrying costs
A couple we’ll call Thomas, 33, and his wife Marti, 34, want to move from renting an apartment in Toronto to owning a house. In most of Canada, that would be a cinch with their present gross income of $141,000 a year and the prospect of a big jump in income when, in a few years, Marti completes a postgraduate PhD program and switches from being an underpaid researcher in a laboratory to working as a chemist for what she estimates will be a pre-tax starting salary of $100,000 a year.