The level of new Toronto Condo sales over the last five years was 18,000 suites selling annually, according to a leading research firm in Toronto.
Over half of these new Condos are bought by investors who do not plan to live in them and as a result they rent them out or leave them vacant.
Rent from these Toronto Condominiums are not climbing to keep up with the higher prices Condo investors are paying for their Condos over the last few years.
Here is an average price for a new Condo development in the heart of the Entertainment District.
Average price from several different floor plans: $627 sq. ft. x 622 sq ft $390,000
The average total sq. ft. of the same units: 622 sq. ft.
The maintenance cost at .53 per sq. ft. (.53x622) $330.00/month
Taxes (estimated) $3,900 per year
The average current rent is $2.09 per sq.ft. this unit (2.09x622) $1300 month
For this example we used 25% down payment, interest rate 3% and average increase in price 6%
| Rent Vs. Buying Condo Comparison | ||
| If Renting | If Buying | |
| Monthly Payment | $1,300.00 | $1,387.07 |
| Insurance / Taxes/Mtc. Fee | $30.00 | $716.67 |
| Total Monthly Payment | $1,330.00 | $2,103.74 |
| Total Rent / Mortgage Payments Over 7 Years | $115,974.82 | $176,713.88 |
| Long Term Benefits of Home Ownership | |
| Home Value at Expected Selling Date | $553,222.45 |
| Less Down Payment | $97,500.00 |
| Less Loan Balance | $281,739.13 |
| Less Selling Costs | $27,661.12 |
| Total Condo Gain | $146,322.20 |
Try our Rent Versus Buy Calculator on our Toronto Condos website. Add the monthly Condo maintenance fee in with the Insurance/Taxes.
Pictured above is the new Festival Tower Condos for sale or rent in the Toronto Entertainment District.
Related:
Toronto Condos Downtown
Toronto Home And Condo
Posts
