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.Â 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?
For more information about new developments, investing, selling or buying properties email UrbanRealtyToronto@gmail.com