A real-dollar comparison over 5 and 10 years
Every year, I hear some version of this question from people thinking about living in Muskoka (and Parry Sound):
“Should we rent first… or does it actually make more sense to buy?”
And the honest answer is… it depends.
Not on emotion. Not on headlines. On numbers, time horizon, and lifestyle priorities.
So instead of opinions, let’s walk through a real-world comparison using today’s Muskoka-appropriate numbers — no hype, no fear tactics, just clarity.
The Scenario We’re Comparing
Let’s assume a $1,000,000 year-round Muskoka home — a realistic price point for many families relocating or upgrading from seasonal use.
Homeownership assumptions
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Purchase price: $1,000,000
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Down payment (20%): $200,000
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Mortgage: $800,000
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Interest rate: 3%
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Amortization: 25 years
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Monthly mortgage payment: ~$3,794
Annual ownership costs
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Property taxes: $10,000
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Utilities (heat, hydro, internet, snow, etc.): $10,000
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Maintenance (1%): $10,000
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Total non-mortgage costs: $30,000/year
Renting assumptions
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Rent: $4,500/month
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Utilities: $10,000/year
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Total rent + utilities: $64,000/year
Investing assumptions for renters
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$200,000 (the down payment) invested at 8%
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Monthly cash-flow difference invested at 8%
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No leverage, no speculation — just steady investing
Appreciation & sale assumptions
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Home appreciation: 3% annually
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Selling costs at exit: 5%
First: The Annual Cash Flow Reality
🏠 Owning
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Mortgage payments: $45,528/year
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Other costs: $30,000/year
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Total annual outflow: $75,528
🏘️ Renting
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Rent + utilities: $64,000/year
Difference
➡️ Renting frees up about $11,500/year (~$960/month) to invest.
This is important — but it’s only part of the story.
5-Year Comparison: Renting vs Owning
🏠 Owning After 5 Years
Cash out
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Down payment: $200,000
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Mortgage payments: $227,640
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Taxes, utilities, maintenance: $150,000
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Total cash out: $577,640
Equity built
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Principal paid: ~$116,000
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Total equity before appreciation: ~$316,000
Home value after 5 years @ 3%
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Value: ~$1,159,000
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Selling costs (5%): ~$58,000
✅ Net equity after sale: ~$453,000
🏘️ Renting After 5 Years
Cash out
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Rent + utilities: $320,000
Investments
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$200,000 invested @ 8% → ~$294,000
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$960/month invested @ 8% → ~$70,500
✅ Total net worth: ~$364,000
📊 Simple Snapshot (5 Years)
5-Year Net Worth Comparison
Owning: ██████████████████ $453K
Renting: ██████████████ $364K
Winner at 5 years: 🏆 Owning, by ~$89,000
10-Year Comparison: The Long Game
This is where lifestyle and wealth really start to diverge.
🏠 Owning After 10 Years
Cash out
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Mortgage payments: $455,280
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Taxes, utilities, maintenance: $300,000
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Down payment: $200,000
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Total cash out: $955,280
Equity built
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Principal paid: ~$251,000
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Total equity before appreciation: ~$451,000
Home value after 10 years @ 3%
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Value: ~$1,344,000
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Selling costs (5%): ~$67,000
✅ Net equity after sale: ~$826,000
🏘️ Renting After 10 Years
Cash out
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Rent + utilities: $640,000
Investments
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$200,000 @ 8% → ~$432,000
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$960/month @ 8% → ~$176,000
✅ Total net worth: ~$608,000
📊 Simple Snapshot (10 Years)
10-Year Net Worth Comparison
Owning: █████████████████████████ $826K
Renting: ██████████████████ $608K
Winner at 10 years: 🏆 Owning, by ~$218,000
What These Numbers Actually Tell Us
This isn’t about “renting is bad” or “owning is always better.”
It’s about context.
Renting can make sense if:
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You value flexibility
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You’re new to Muskoka and want to test the lifestyle
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You’re disciplined with investing
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You’re unsure you’ll stay 7–10+ years
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You don’t want maintenance responsibility (totally valid)
Owning tends to win when:
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Rent reaches luxury pricing (like $4,500/month)
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You plan to stay long-term
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Appreciation is modest but steady (2–3%)
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You want tax-free equity growth (huge in Canada)
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You value stability and lifestyle control
And one important Canadian nuance:
👉 Principal residence equity is generally tax-free 👉 Investment returns usually are not
That alone quietly tilts the scale toward ownership over time.
The Honest Muskoka Perspective
Muskoka isn’t just a housing decision — it’s a lifestyle decision.
Some people want:
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Flexibility
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Lock-and-leave simplicity
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Fewer responsibilities
Others want:
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Roots
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Control
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A dock that’s theirs
Both are valid.
The mistake is choosing without understanding the numbers.
Because being informed is how you truly “Be where you want to be.”
If you’re renting in Muskoka (or thinking about it) and wondering “Are we making the right move?” — you’re not alone.
I regularly help people:
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Compare rent vs buy using their real numbers
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Decide when renting makes sense — and when it doesn’t
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Plan lifestyle-first moves that still support long-term wealth
💬 Comment “NUMBERS” and I’ll share the framework I use with clients to decide what actually makes sense for them.
No pressure. Just clarity.
Because the goal isn’t just to live in Muskoka… It’s to be where you want to be — financially and lifestyle-wise. 🌲🏡✨
