Here's A GOOD SCENARIO for first-time home buyers who believe that NOW is the right time to get on the PROPERTY LADDER, as shown in 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 gained $23,195 either with your tenant paying down the mortgage of your property or have paid it down yourself by living in it rather than renting. 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 usual 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 $140,000 (gain in value, mortgage pay down, minus expenses like commissions & legal fees).
$140,000 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. Call us and we will be more than happy to sit down with you and explore your options.
The promo for a 5% DOWN PAYMENT at THE CANARY DISTRICT CONDOS has been extended by the builder until further notice so CALL US and we will be more than happy to sit down with you and explore your options.
CHECK OUT THIS ARTICLE ABOUT THE NEW CANARY DISTRICT NEIGHBOURHOOD.