Condo prices in Toronto keep going up, it is not uncommon to pay $750 a square foot in the downtown core!…Nuts?…Not when you compare Toronto to other world class cities.
People from all over the world and the rest of Canada keep choosing Toronto as their destination to find a good life.
Despite the Media’s doom and gloom stories about the market crashing, resale prices and rental prices keep going up and people keep buying and renting…What should you do?
Here is a little math, based on 2 condos currently available in CityPlace they are in the same building,roughly the same size and on the same floor, one is for sale and one is for rent:
Monthly maintenance fee $283
Monthly property Taxes $145
Monthly mortgage payment$1326
Total Monthly Cost $1754
Monthly maintenance fee $0
Monthly property Taxes $0
Monthly mortgage payment$0
Total Monthly Cost $1500
It looks like it sucks to be a homeowner!!…But wait a minute…what happens after 5 years?
Money wasted on maintenance fees $17653
Money wasted on property Taxes $9053
Money wasted in interest $38850
Total Waste $65,556
Money wasted on rent $93671
Total Waste $93671
What do you think? Would you rather rent or buy?
When you already to make your move, make sure you contact me.
For the purpose of this exercise I assumed that rental rates, property taxes and maintenance fees would go up on average 2% per year.
The mortgage calculations are based on 5% down, 5 year fixed rate of 3%