Sunday October the 22nd, 2017 

TEAMJONAMANTE: *Jon*Sylvia*Mehdi*Cliff*Neil  *Sales Representatives

REMAX Realtron Realty Inc. Brokerage

Independently owned and operated

2815 Bathhurst Street, Toronto ON, M6B 3A4

Direct: 416-543-8852

Office: 416-782-8882

Toll Free Fax: 1-866-513-2193

Fax: 416-782-3329

Climbing the Property Ladder

June 15, 2015 - Updated: June 15, 2015

HOW TO GET STARTED ON YOUR PROPERTY LADDER

Here's A GOOD SCENARIO for a first-time home buyer who believes that NOW is the right time to get on the PROPERTY LADDER, as shown on a new poll by RBC.

The poll showed that "out of the one in four Canadians who plan to buy a home in the next two years, 44 per cent will be first-timers. The survey also showed that 84 per cent of respondents believe that buying a home is a good investment."

 

"The main concern is the state of personal finances; 50 per cent of respondents said they don’t have a large enough downpayment, while 48 per cent said they don't have enough income. Nearly a third (29 per cent) cited low job security while 27 per cent cited high personal debt."

ALLOW US TO SHARE WITH YOU HOW OTHERS HAVE DONE IT...

Purchase Price on pre-construction: $252,900: One bedroom, approximately 550 sq. feet, no parking, 1 locker.
A down payment of 20% of the purchase price: $50,580
A mortgage for 80%: $202,320
Monthly carrying cost of $1,280 (including taxes & condo fees)

***Assume that you live in it or rent it out for 5 years. Mortgage balance by the end of 5 years will be $179,125 so you've either gained $23,195 with your tenant paying off the mortgage of your property or paid it down yourself if you've decided to live in it. This is a return of 46% on your initial investment of $50,580.

***Assume that properties in downtown Toronto increase by 5% per year (after the initial jump to $315,000). By the end of 5 years, the value of your property would be $383,000 , leaving you with a profit of more or less $145,000 (gain in value, mortgage paydown by tenant and small positive cash flow of $100/month, minus expenses like commissions & legal fees).

***$145,000 in equity and capital gain would then help you move up on the property ladder and get your closer to being able to afford your "dream" home.

Not a bad return for an initial investment of $50,580, don't you think?

ALLOW US TO HELP YOU GET STARTED ON YOUR PROPERTY LADDER.

 


Tagged with: real estate first time home buyer
| | Share

Leave a comment...

Please enter the numbers found on the right.

Home  |  Top  |  Printer Friendly  |  +Bookmark  |  Privacy Policy
Powered by Lone Wolf Real Estate Technologies (CMS6)