Hm...thanks a ton for the info and to ZX600 as well. After some number crunching, renting doesn't make sense.
Housing Market
- Thread starter Ducati911
- Start date
Hm...thanks a ton for the info and to ZX600 as well. After some number crunching, renting doesn't make sense.
油井緋色;2415770 said:
It may, depending on your near-to-mid term plans. If they're subject to change (family planning, job relocation, etc), it may make sense to rent until your circumstances are more firm. Getting in and out of a place can be quite expensive after legal and real estate fees. I'd say if you are not sure if you'll be living in the same place you're looking at 5 years from now, then keep renting until you're certain.
That's why I'm thinking about buying. Software jobs along the Yonge line and nearly infinite. My gf's job is also pretty much set in stone unless she switches location so if that's set then I don't see why we'd move. Plus she's obsessed with Yonge and Finch.
Only problem is I don't know if I'll ever own a street bike. If I were to get one in a few years it'd probably be the new GSXR1000 or a SuperDuke...I think both are highly prone to theft.
Iceman
Well-known member
I currently rent a three bedroom bungalow on nearly an acre lot in Angus, 10 minutes west of Barrie. I pay $1100 all inclusive per month. I commuted to Keele and 7 every day for a year or so, I hated it . I got a job closer to home, lost some money but gained huge personal/family time. It was well worth it.
For what it costs me to rent here, I may never leave. The money we save goes to savings and some small luxuries like our bikes.
Will I ever buy a house? I'm not sure. Would we like to? Sure but then I can't call the landlord when the roof leaks, furnace dies, plumbing issues, etc. Renting does have some advantages. Ymmv
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For what it costs me to rent here, I may never leave. The money we save goes to savings and some small luxuries like our bikes.
Will I ever buy a house? I'm not sure. Would we like to? Sure but then I can't call the landlord when the roof leaks, furnace dies, plumbing issues, etc. Renting does have some advantages. Ymmv
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-D-
Banned
that joke will be realigned shortly when the city comes looking for mo money mo money mo money, lol
but seriously property tax on a $500k condo downtown is how much???
-D-
Banned
something not adding up
http://wx.toronto.ca/inter/fin/tax.nsf/tax?OpenForm&Seq=1
[TD="colspan: 2"] Results for property with an assessment value of $500,000
[/TD]
[TD="width: 19"]
[TD="width: 106"]
Total Taxes: $ 3,439.87 * [/TD]
[TD="width: 385, colspan: 2"]
Of which:
[TD="width: 367"] $ 940.00 goes to Education [/TD]
[TD="width: 367"] $ 2,485.15 goes to the City [/TD]
[TD="width: 367"] $ 14.72 goes to the Transit Expansion [/TD]
[TD="width: 19"]
[TD="width: 491, colspan: 3"]
* Please note that this amount is the total tax amount on your home. A portion of this goes to fund the Province’s Education system. This is why your total taxes are made up of a City rate and an Education rate. Your 2016 City tax rate is 0.4970292 %. Your 2016 Education tax rate is 0.188000 %. Your 2016 Transit Expansion tax rate is 0.0029439 %. Your 2016 Total tax rate is 0.6879731 %.
[/TD]
something not adding up
http://wx.toronto.ca/inter/fin/tax.nsf/tax?OpenForm&Seq=1
[TD="colspan: 2"] Results for property with an assessment value of $500,000
[/TD]
[TD="width: 106"] Total Taxes: $ 3,439.87 * [/TD]
[TD="width: 385, colspan: 2"] Of which:[/TD]
$940.00 goes to Education
[TD="width: 367"] $ 2,485.15 goes to the City [/TD]
[TD="width: 367"] $ 14.72 goes to the Transit Expansion [/TD]
[TD="width: 19"][/TD]
[TD="width: 491, colspan: 3"] * Please note that this amount is the total tax amount on your home. A portion of this goes to fund the Province’s Education system. This is why your total taxes are made up of a City rate and an Education rate. Your 2016 City tax rate is 0.4970292 %. Your 2016 Education tax rate is 0.188000 %. Your 2016 Transit Expansion tax rate is 0.0029439 %. Your 2016 Total tax rate is 0.6879731 %. [/TD]
Where's Brooklin. Condos might be grouped.
I own a condo in Milton, value about 300k for tax purposes, taxes are 2,800.
For lots of people renting can make sense, if you make enough to bank similar gains that you could see in real estate. And have the discipline to bank the money. Some renters can do better than home owners in gains, if you move frequently or unsure where you wish to live, selling a home is more expensive than some will admit.
For lots of people renting can make sense, if you make enough to bank similar gains that you could see in real estate. And have the discipline to bank the money. Some renters can do better than home owners in gains, if you move frequently or unsure where you wish to live, selling a home is more expensive than some will admit.
it'd be way more. probably closer to $3000
+1. For one I know of in TO ~420,000 condo, property tax is around 2800.
No wonder the city rubber stamps applications, tear down 3 houses @$10,000 each in property tax and replace with 100 condo units at $2800 each. That's almost 1000% increase in revenue and you get to provide less services (condos typically use private garbage pickup while the houses use public collection).
Sorry, I was thinking of a quarterly bill I once got .... I think. Looked it up, It was 2200 a year
something not adding up
http://wx.toronto.ca/inter/fin/tax.nsf/tax?OpenForm&Seq=1
[TD="colspan: 2"] Results for property with an assessment value of $500,000
[/TD]
[TD="width: 106"] Total Taxes: $ 3,439.87 * [/TD]
[TD="width: 385, colspan: 2"] Of which:[/TD]
$940.00 goes to Education
[TD="width: 367"] $ 2,485.15 goes to the City [/TD]
[TD="width: 367"] $ 14.72 goes to the Transit Expansion [/TD]
[TD="width: 19"][/TD]
[TD="width: 491, colspan: 3"] * Please note that this amount is the total tax amount on your home. A portion of this goes to fund the Province’s Education system. This is why your total taxes are made up of a City rate and an Education rate. Your 2016 City tax rate is 0.4970292 %. Your 2016 Education tax rate is 0.188000 %. Your 2016 Transit Expansion tax rate is 0.0029439 %. Your 2016 Total tax rate is 0.6879731 %. [/TD]
Dresden
Well-known member
You're either dreaming or ill informed.
First off, you can't buy with 5% down any more. Those days died a LONG time ago. It's 20% if it's an investment, and even if it's not an investment, most (if not all) developers ask for 15% within the first year and the last 5% on occupancy. If you decide to borrow more than remaining 80% from the bank at the time of mortgage, then you have to purchase the mandatory CHMC insurance.
Then factor in that pre-construction condos are being priced at tomorrow's price today. I.E., for the price of a new condo built in 2-3 years, you can walk across the street and purchase an existing unit (probably more spacious) for the same price right now, the only difference being the higher maintenance fees.
Then the occupancy period where you pay "rent" to the developer before the final closing (sometimes one year).
Then closing costs
etc.
-------------------
Take a $350k 1 bedroom + den - roughly 600 sf, assume $0.50/sf. maintenance fee + $50 parking. This would be a $583/sf. unit purchase price.
Downpayment - $70K (20%),
mortgage $280K (80%)
Rental value = $1800 (if you are lucky... $350k is etobicoke/Mississauga prices, not downtown Toronto)
Mortgage payment = ~$1200/mo at today's rates
Fees = $350/mo
Prop Taxes @1%/yr = $291.67
Monthly cashflow: $1800 - ($1200-$350-$291.67) = -41.67
We've not even factored in your closing costs yet, lawyers fees etc. that you had to pay out of pocket, or repairs, or your tenant missing payments or insurance or having your property vacant while looking for a new tenant or or or..
--------------
Let's assume you miraculously get $2000 rental income.. you're making a whopping $150 a month. That's $1800 a year rental income or 2.5% return per year on your $70k.
You put that $70K into a bank stock paying 4% you would have $2,800/yr. Better yet, you put it into a DRIP fund, you are now making interest on interest year over year and you don't have to worry about finding a new tenant.
RE investment and stock are LONG strategies. Difference with RE is you can leverage 10x your investment. Remember the age old adage - "Time IN the market, NOT timing the market"
Those who got in when downtown condos were selling for $400/sf. and could rent them out for 10% comps/yr are laughing today. Great for them. At today's prices, it doesn't make much sense.
Please show me where one could "net big gains" in the current pre-construction condo market.
kthxbye
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$350k will buy a 1-5 year old Toronto condo near a subway station, rentable for $1650. It'll be a 1 or a 1+1, 600-699sq-ft.
If you borrow $300k at 2.2% you're out $1300/mo in mortgage payments. Add $450 maintenance, $200 taxes; $1900 out of pocket.
$1650 rental income covers the $500 in interest, $450 in maintenance, and $200 in taxes. It then provides a further $500 directly into paying down your principal. You're -$300 per month, but that's money going directly into your principal, it's not a loss. The $350k condo is also then appreciating at 2-3% per year, if you buy smart.
Your post falls completely apart because you look at negative cashflow as a loss.
Also, I never said you can buy pre-construction with 5%. And the days of buying with 5% down are MOST CERTAINLY not over. I have no idea what you're talking about.
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So here is an interesting approach. House across the street from us just sold. The new owners are going to rent it out (this is not the interesting part). They bought it as their "dream" house and the plan is to live it up down town renting until they have kids, then they move into the dream home. In the meantime the house is for rent for 5K a month (they might not get that but the previous owner rented it out after some family issues and was pulling in 4500) paying down the mortgage.
They realize that if the market keeps going down this road, condo life will NEVER lead them into a detached home.
$5000 rent is quite the handsome amount. Is this a million dollar home?
