ploughboy Posted April 16, 2015 Report Share Posted April 16, 2015 Edit: The more I look at this, the more I need to readjust my numbers. Will post something that I hope is accurate in a little while. Link to comment Share on other sites More sharing options...
rmorelan Posted April 16, 2015 Report Share Posted April 16, 2015 awesome I love real world numbers Two questions - are the taxes included in that mortgage calculation? How much of the mortgage was paid off in the 5 years? Link to comment Share on other sites More sharing options...
ploughboy Posted April 16, 2015 Author Report Share Posted April 16, 2015 awesome I love real world numbers Two questions - are the taxes included in that mortgage calculation? How much of the mortgage was paid off in the 5 years? 1) Taxes - I arbitrarily added 10% to my cost going in and 5% coming out to try and account for legal fees, land transfer, real-estate commission, other silly things associated with buying and selling real estate, etc. Didn't finesse the numbers any more than that. 2) After 6 years - $60k paid in mortgage interest, $63k paid back on the principle, $25k spent on condo fees (!!!) Link to comment Share on other sites More sharing options...
medhope15 Posted April 16, 2015 Report Share Posted April 16, 2015 You can find a rental for way cheaper than a mortgage. Sure it is not "yours to own" but I seriously do not think you will be making a profit if you sell in 5-6 years when someone can just buy a cheaper new unit at that time, with low condo fees and no falling glass. I would say start owning when you start making more money or if you are a couple go in on an actual house or townhouse as those will always be in demand. Link to comment Share on other sites More sharing options...
rmorelan Posted April 17, 2015 Report Share Posted April 17, 2015 1) Taxes - I arbitrarily added 10% to my cost going in and 5% coming out to try and account for legal fees, land transfer, real-estate commission, other silly things associated with buying and selling real estate, etc. Didn't finesse the numbers any more than that. 2) After 6 years - $60k paid in mortgage interest, $63k paid back on the principle, $25k spent on condo fees (!!!) Ok! I was thinking yearly property tax Link to comment Share on other sites More sharing options...
schmitty Posted April 28, 2015 Report Share Posted April 28, 2015 nobody can answer this question accurately because nobody can predict the market. For example, I bought my condo in downtown TO about 5.5 years ago and the value has one up around 32% in that time. We have put around 8% of the original value into renoes during that time for a very large net gain. For this particular 5 year period, buying was no question better than renting. However, if the market had flatlined (or gone down, which is quite unlikely in the Toronto market but could still happen), it may have been worse for us since the carrying costs of the condo were higher than renting ($1600 rent for our place vs probably $2000 all in w/ taxes, condo fees, mortgage (including interest), insurance, upkeep + closing costs). Overall, it is unlikely you will make a huge amount of money from buying vs. renting within a relatively short 5-year period (esp after closing costs, upkeep, etc) so renting is the safer bet. Of course, you could always plan to rent the place out after you move if the market timing is not favourable (this is my plan if/when I have to move for residency - I like the idea of other people contributing to my retirement savings). Link to comment Share on other sites More sharing options...
tiger Posted June 11, 2015 Report Share Posted June 11, 2015 Depends on how long you are staying in Toronto and how accurately you can answer this question I would not buy a condo though, a real estate agent advised buying a house over a condo. Even you rent it, renting still constitutes work and poses some risks, especially if you are not lucky and find an unreliable tenant. Link to comment Share on other sites More sharing options...
schmitty Posted June 11, 2015 Report Share Posted June 11, 2015 Depends on how long you are staying in Toronto and how accurately you can answer this question I would not buy a condo though, a real estate agent advised buying a house over a condo. Even you rent it, renting still constitutes work and poses some risks, especially if you are not lucky and find an unreliable tenant. Yes of course a detached or semi house would likely appreciate faster, but the condo market has also appreciated extremely well over the last 15 years and is still going! The problem with a detached or semi is it is much more upkeep (in terms of time AND money), no amenities (I have a free gym, hottub, sauna, BBQs, rooftop patio, etc that I use all the time), much higher insurance and the biggest of all, they just aren't available in any decent price range in Toronto anywhere near the downtown in a decent area. I would much prefer walking/biking to everything I could possibly want or need than have to sit in traffic in a car everyday, even if it means higher per sq ft costs and a smaller living space (just means I hoard less stuff and spend less on material things, which is good anyway!). Link to comment Share on other sites More sharing options...
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