Renting a Toronto condo or Toronto loft is about to get a lot more expensive.
As purchase prices of Toronto Real-Estate seen significant increases, so do the monthly costs for your typical investor, who purchased a 600 sq. ft. condo in a new downtown building, and now rents it out.
For example, a couple of years ago a 600 sq. ft. condo (in a new, modern building) would have cost approx $330/ft. or, $198,000. The same size condo today, say, in Liberty Village, runs around $250,000, a 25% increase or $416/ft.
With 25% down, the Investor pays approx $960/mo. in mortgage.
Condo fees appreciate with inflation and cost of living, and our investor probably pays between 50 and 60 cents/ft., a monthly, so about $300/mo. for fees.
Taxes are approx 1% of purchase price, and at $2500/yr, the Investor pays about $200/mo. for your rental.
The Investor also has to pay insurance, and the cost of acquiring a Tenant, which comes to approx. $150/mo. amortized over the year of tenancy.
All in all, our 600 sq. ft. condo runs about $1460/mo. net, and with Insurance and other costs up to $1,600/mo.
So be prepared to pay the actual cost on the unit. But hey, at this price, shouldn’t you just buy one?
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