Renting is often a better deal than buying. That’s because of how expensive it is to own a home

Renting is looking like a good deal in many parts of Canada. While there is a common perception that renting is just “throwing money away,” it’s important to understand the true costs of owning a home.The full cost of renting is obvious: it’s the rent. The total costs for a homeowner are less obvious and often hard to measure. The big expenses are property taxes, maintenance costs, depreciation, and the cost of capital – which includes not just mortgage interest costs, but also the opportunity cost of not investing that down payment you worked so hard to save.Property taxes don’t need much explanation. Maintenance and depreciation costs are more of a challenge to calculate. Homes are depreciating assets. Land appreciates, but buildings depreciate. Spending on maintenance reduces, but does not eliminate, depreciation.