simuls
Senior Member
The notional house price increase does not equate to return on capital.
In your defence I was just about to say that!
The notional house price increase does not equate to return on capital.
Hello,
I am currently looking into a newly built 2 bedroom condo @ 868 sq. ft. $204,900.00 at Weston/Sheppard. I believe I can rent out the condo for approximately $1200/month.
I am thinking on putting 10% down @ $22,000 and my numbers are as follows:
$193 mortgage @ 4% @ 35 years. = $850.75
Main. cost = $200
Vacancies = $50
Heating/Elec = $50
------------------
$1151 total per month
Would this be a better investment then throwing the $22,000 in stocks at 5% return per year in a 5 year time frame?
confused5o1 said:Hello,
I am currently looking into a newly built 2 bedroom condo @ 868 sq. ft. $204,900.00 at Weston/Sheppard. I believe I can rent out the condo for approximately $1200/month.
I am thinking on putting 10% down @ $22,000 and my numbers are as follows:
$193 mortgage @ 4% @ 35 years. = $850.75
Main. cost = $200
Vacancies = $50
Heating/Elec = $50
------------------
$1151 total per month
Would this be a better investment then throwing the $22,000 in stocks at 5% return per year in a 5 year time frame?
How did u come up with maintenance cost of $200 ($0.23/sq.ft.). That seems grossly underestimated. Should be in the $0.35-$0.45/sq.ft range.
Also, what about property taxes (about $128/mth minimum)?
Hello,
I am currently looking into a newly built 2 bedroom condo @ 868 sq. ft. $204,900.00 at Weston/Sheppard. I believe I can rent out the condo for approximately $1200/month.
I am thinking on putting 10% down @ $22,000 and my numbers are as follows:
$193 mortgage @ 4% @ 35 years. = $850.75
Main. cost = $200
Vacancies = $50
Heating/Elec = $50
------------------
$1151 total per month
Would this be a better investment then throwing the $22,000 in stocks at 5% return per year in a 5 year time frame?
How did u come up with maintenance cost of $200 ($0.23/sq.ft.). That seems grossly underestimated. Should be in the $0.35-$0.45/sq.ft range.
Also, what about property taxes (about $128/mth minimum)?
Don't forget insurance ...
Also, after 5 years, your outstanding mortgage will be $178,900 and mortgage rates will have likely risen and your new payments @ 5% = $955; @ 6% = $1,064; @ 7% = $1,178; @ 8% = $1,297.
What stocks are you investing that guarantees you 5% return per year for 5 years? i'd be wary of any investment that 'guarantees' anything.
ALWAYS read the prospectus for complete details; and ASK ASK ASK questions of your financial advisor if you don't understand.
If i were to break even, would this still be a great investment? I mean, your having someone pay off the house and you could only be paying for contingent costs such as repairs/maintenance however it should be relatively minimal providing that great tenants are found and that the property is brand new.
5%... bank pref shares? i'll be going to the Index ETF route too
Hello,
I am currently looking into a newly built 2 bedroom condo @ 868 sq. ft. $204,900.00 at Weston/Sheppard. I believe I can rent out the condo for approximately $1200/month.
I am thinking on putting 10% down @ $22,000 and my numbers are as follows:
$193 mortgage @ 4% @ 35 years. = $850.75
Main. cost = $200
Vacancies = $50
Heating/Elec = $50
------------------
$1151 total per month
Would this be a better investment then throwing the $22,000 in stocks at 5% return per year in a 5 year time frame?
I would agree that an investment that returns 6% annually is respectable but it is hardly the path to wealth creation that you've described.
I am thinking on putting 10% down @ $22,000 and my numbers are as follows:
$193 mortgage @ 4% @ 35 years. = $850.75
Main. cost = $200
Vacancies = $50
Heating/Elec = $50
------------------
$1151 total per month