The Toronto real estate market is very healthy. The cost of Toronto area re-sale homes has risen consistently for the past 10 years, especially condos. Unfortunately, what this results in is lack of rental options at an affordable price. Having said that, we believe that buying is still an option for many that believe they simply can’t buy. Let’s do some comparisons to explain.
2 Bedroom Condo, Downtown Toronto
Rental: $3,100/ month For the sake of argument, let’s assume a monthly rental rate of $3,100 per month (this is actually a pretty accurate 2 bedroom rate, as of the date of this blog). That rent does not include utilities… it’s just a bare-bones rental rate.
Owned: $3,608 / month Assuming a purchase price of $780,000, amortized over 25 years at rate of 2.55%, 10% down (being $78,000), property taxes paid through the mortgage, and buyer being a first-time buyer (with rebate taken into account). With bi-weekly mortgage payments of $1,504, and a monthly condo fee of $600, this brings the total monthly payment (before utilities), to $3,608.
1 Bedroom Condo, Downtown Toronto
Rental: $2,350/ month Assuming a monthly rental rate of $2,350 per month (as of the date of this blog, this is an average rate for a one bedroom), with utilities being extra.
Owned: $2,591 / month Assuming a purchase price of $575,000, amortized over 25 years at rate of 2.55%, 10% down (being $57,500), property taxes paid through the mortgage, and buyer being a first-time buyer (with rebate taken into account). With bi-weekly mortgage payments of $1,109, and a monthly condo fee of $373, this brings the total monthly payment (before utilities), to $2,591.
The Toronto real estate market has seen healthy value increases. Prices will continue to rise. If you are a first time home buyer or are downsizing, keep this in mind and don’t delay. Properties move fast. Get yourself pre-approved for a mortgage, set your budget, CALL US, and get ready to start buying a condo in Toronto. The longer you wait, the higher the prices go. Call us today! 416-222-0025.
Interested in buying real estate in Toronto & the GTA, or perhaps investing in Toronto real estate? First time home buyer? Moving to Toronto? Are you part of a Toronto relocation with your employer? Our real estate sister company – MAC Real Estate Services Inc., Brokerage – can help you with all steps of the process, from finding a new home, temporary accommodations in the meantime, destination services, settling in services, move management, and so much more. So many steps of the move can be handled in advance, so when you arrive we can get you settled much faster. When moving to Toronto, we can help with all aspects of the relocation.
We’d love to hear from you, so call us today to book your complimentary private consultation.
Once you are all settled into your new home, let us help you with a relaxing Caribbean get-away with a private luxury villa rental in St Martin/ St Maarten, St Barth’s or Anguilla. Caribbean villa rentals are a cost-effective way to travel. Ask us how!