Even with the higher market values, it is generally better to own a property as opposed to renting it.  Although property values climb and fall from year to year, they have always risen in the long run.

Let’s consider an average apartment at $300,000 and let’s say the rent is $1,500/mnt.

Over 1 year, you will have paid $18,000 in rent, which has nicely paid for someone else’s mortgage.

At an example rate of 4.15%, with 5% down payment, you can get a monthly payment of approximately $1,565 which includes the average principal payment of $620 that adds up to your equity so you are paying around $945/m out of your pocket (interest) however you now pay strata fee because you own the place (approx $250/m) and you will have to pay the property taxes of approximately $100/m.

After 1 year, you will have paid $15,540 in interest payments, strata fees and property taxes, but you will be an owner of real estate, which generally appreciates over time.  At a conservative appreciation of 5% per year, your property will now be worth about $315,000.  After 5 years of 5% average appreciation your place will be worth approx $382,884 where your mortgage balance is $255,588 and it means you have made $127,296 and of course you can deduct your original $15,000 down payment to get to the realistic number of $112,00 profit. So however your monthly payment out of your pocket was less than the rental payment, on the other hand property appreciated too so not only you are saving on the monthly payments also your down payment made a reason of investment for you too. (Obviously dependent upon an appreciating real estate market as well as which type of rate you decide on)