In Edmonton, the big thing the past few years has been condo conversions of apartment and townhouse complexes. Right now, the market is quite low, and I am not sure what direction the market is going at the moment, or what the story of interest rates will be. For the twelve months coming up, low still looks to be the story. At this point, it is quite possible we will see devalued currency (what happens in the US carries Canada along) and stagflation like interest rates as a follow up of all of our current festivities. Not an absolute, but absolutely a possibility. Mortgage interest rates on a variable are 2.69% at my bank; prime plus 0.40%. For a five year lock in rate, I have seen as low as 3.87%. I have seen a few townhouses in my price range and the cost of the mortgage plus site fees are similar are lower than rent. Of course, you are responsible for the yard, interior, etc. but you also have equity in the home. Everything would definitely be done on a five year horizon, then I would be at a stage in job/life/financial situation I would be in the detached home market. If the bottom falls out of the market, I probably wouldn't lose any more money than I would by renting three to five years. If interest rates go up, I could afford it, it would just kill some of the economics of my plan. If home prices stay the same I'll come out even keel, and if they go up, I win. Thoughts?