Originally posted at the new blog, http://www.Kitchener-Waterloo-Real-Estate-Investments.com
This morning I toured a two bedroom condominium unit with an identical layout to a unit we just purchased. The condo is vacant, and needs new flooring in most of the unit (maybe 600 sq ft of flooring) and could use a paint job and some updated lighting.
It has all the characteristics of an investment I love:
- Investment property in a residential neighborhood
- Near a school
- Near major shopping centers
- Near the highway (I promise, this is a good thing in Kitchener Waterloo; if you’re near the expressway you can get anywhere in 15 minutes)
- Needs cosmetic work and priced accordingly
- Less than 20 years old
The unit I saw is offered for sale at $105,000, which is less than other main floor units have been selling for this year. An identical unit in the complex we bought in is for sale right now for ~$118,000 – it is in better shape, but that’s only a new paint job and some flooring away
If you invest in this condo for $105,000 with 20% down payment – $21,000 – you will need a mortgage for $84,000. If you get a 5 year fixed rate mortgage for 5.89% (that’s the rate I got in July, and in fact rates are a bit lower now) and amortize the payments over 40 years, your monthly mortgage payment is about $452 a month according to the mortgage calculator I’m using. Condo fees are currently $210.00 a month, and taxes are a shade under $100 a month. Insurance should be under $20 a month.
$452 (mortgage) + $210 (condo fees) + $100 (tax) + $20 (insurance) = $782.00
If you rent your unit out for $825 + hydro a month, you have a great condo paying for itself each month. All you have to do is collect twelve rent cheques each January.
Could your retirement portfolio benefit from the accelerated equity growth real estate can offer you? Call me now for a free consultation about how you can start investing in real estate today!