Some buyers choose to invest in a Toronto resale property, which means you get started as a landlord sooner. Landlords make money in their sleep, so by selecting a resale property, you can start earning money faster. Others opt to invest in pre-construction, which does provide a greater timeline to procure funds. The downside is that the project will need to be completed before you can begin to earn money.
Let's take a look at the numbers for a 1 bedroom, 1 bath resale condo priced at $575,000:
- Monthly expense would be $2,488
- Bi-weekly mortgage payments of $1,019 (25 years at 3.14% with 20% down)
- Monthly condo fee of $450
- The initial cash required for closing would be about $132,625
- 20% down payment of $115,000
- Land transfer taxes of $15,950
- Legal fees and title insurance of about $1,675
The current rent for a one bedroom condo in downtown Toronto is about $2,350. Remember that if your expenses exceed your rental income, you may be able to deduct that loss from any other sources of income you have. This could reduce your total tax bill. Property taxes and insurance can also be deducted from your income when completing your taxes.
Currently, condos are appreciating at approximately 6% per year. If you retain that property for 10 years, there is a possibility that your property could nearly double in value.
Real estate grows in value faster than you will earn interest from a savings account at your bank. Invest in Toronto real estate now and build your wealth. Our team of real estate sales representatives are Toronto real estate specialists. Why would you not use a specialist for such a big investment? Together with our mortgage and legal experts, we help make the process straightforward and efficient. We are real estate investment experts. We’ll help make you a successful real estate investor. BE INVESTED.
Call us today to book your complimentary private consultation. 416-222-0025.