Buy or Rent a Condo?

Buying or renting a condo remains a recurring question, in a context of rising rents and pressure on co-ownership fees. However, data analysis over several years reveals financial and wealth gaps that are difficult to ignore.

This article is a preview of the upcoming Spring 2026 edition of Condoliaison.

In many cases, purchasing a well-managed condo proves not only comparable to renting in the short term, but significantly more advantageous in the medium and long term, while also allowing households to build and protect their family wealth.

A realistic and current scenario

Let us consider the example of a buyer purchasing a condo with an elevator and indoor parking for $330,000, with a 20% down payment and a 4% interest rate over 25 years. In this scenario, the monthly mortgage cost is almost equivalent to the rent for a similar unit when combining mortgage, taxes, and co-ownership fees ($2,115). In short, the difference in monthly payments between renting ($2,195) and buying is minimal, despite additional related costs (transfer duties and notary fees, which may vary).

However, buying offers a significant advantage: what these payments generate over time, namely financial wealth.

Rising fees… yes, but let us compare properly

In 2025, the co-ownership fees for this building increased from $432 to $484 per month, a $52 increase corresponding to approximately 12%. This is a real increase, but it must be compared to the reality of the rental market.

Over the same period, the Tribunal administratif du logement authorized an average rent increase of 5.9% in 2025 and 3.1% for 2026. In this specific scenario, this represents a monthly increase of $109.75. Rent increases are therefore more than double those of co-ownership fees. This difference, often underestimated, becomes decisive when observed over several years.

The cumulative effect of time

In the short term, renting and buying may appear comparable. However, over a five-year horizon, the gap widens significantly in favour of buying. Let us look at figures from the Outaouais region:

• Mortgage balance after five years: $229,822
• Projected condo value: $371,633 (2% annually)
• Approximate net equity at resale: over $140,000

Net equity is real capital, generated directly from ownership. In a rental scenario, monthly payments are made without any possibility of return on investment.

The condo as a tool to protect family wealth

Beyond monthly comparisons, purchasing a condo is also a powerful tool for protecting and transferring family wealth. Historically, this is how many families have preserved and grown their assets over time.

When a household becomes an owner, a portion of each payment goes toward paying down principal, and the invested money remains within the family. The value created can be transferred or reinvested.

In the scenario analyzed, more than $140,000 is generated, which could eventually be used to help a child purchase their first property, support a family project, strengthen retirement, or be reinvested in another real estate asset. By contrast, rent, although necessary, permanently leaves the family’s wealth.

And when the mortgage is paid off

In many buildings of this type, a large number of co-owners no longer have a mortgage. The financial impact then becomes even more significant. In our example, this represents $84,480 in savings over five years, excluding inevitable rent increases and real estate market appreciation.

This ability to retain liquidity within the family, while benefiting from a tangible asset, clearly illustrates the role of the condo as a wealth-building vehicle.

An essential condition: a healthy syndicate

This analysis is based on a fundamental element: the quality of co-ownership management. The scenario presented assumes:

• an asset management plan (AMP);
• an up-to-date maintenance logbook;
• responsible and forward-looking management over time.

In this context, fee increases are planned, justified, and aimed at protecting the building and its value. A well-managed co-ownership does not represent an additional expense for co-owners, but rather a collective investment in their shared asset.

Renting may offer short-term flexibility and may suit many people at different stages of their lives. However, purchasing a well-managed condo allows for the building of real capital and the preservation of family wealth. In many cases, buying becomes a concrete way to limit financial erosion linked to rising rents, as the amounts are invested within the family, while also enabling the transfer of tangible value to future generations.

In co-ownership, more than ever, quality management is not an expense, but a strategic choice for protecting wealth.

Financial scenario for the Greater Montréal area

• Purchase price: $505,000

• Down payment: 20% ($101,000)

• Mortgage amount: $404,000

• Mortgage balance after five years: $362,219

   

• Comparable rent: $2,800/month

• Co-ownership fees: $311/month

• Five-year projection (net real value and savings): $21,840

Considering these figures for a condo in the Montréal area, we reach the same conclusion: despite a market known to be more expensive, purchasing remains, in most cases, more advantageous than renting in the medium and long term.

 

A text by Roch St-Jacques, guest contributor.

The author is a real estate broker affiliated with CENTURY 21 Élite, where he serves as Director of Training for all of Québec, President of the Board of Directors of the Chambre immobilière de l’Outaouais, real estate columnist at 104.7 FM, and a board member of the RGCQ – Outaouais chapter.