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Purchase a condominium or lease an apartment

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You have accepted your first job in Calgary. You are told it is a three-year contract and you have to decide to purchase a condominium or lease an apartment. You can buy a one-bedroom condominium for $170,000 and believe the resale value will be $185,000. Monthly condo fees will cost $750, payable at the start of every month. The other option is to lease an apartment for $1,500 per month, all utilities included.

Should you rent or buy the condo if mortgage rates are 4.5% compounded semiannually?

Reference no: EM133111899

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