Getting out of the rental rut? Looking to become one of those “first time buyers” we hear so much about? Congratulations!
But have you run your numbers?
And are they accurate?
There are some expenses that go with renting OR buying, but some that don’t.
Think of your rent as your mortgage, the difference of course being that you get some of your “rent” back in the form of paying down a portion of the principal amount owing on your mortgage.
You may or may not have to pay your utilities, depending on whether or not they are included in your monthly maintenance fees.
Property tax is something that all homeowners pay, and the one major difference between renting and owning.
Let’s use an example: 700 King Street West, #816.
Price: $313,000.
Maintenance Fees: $459.59.
Property Tax: $1769.73.
Assuming you pay the full asking price of $313,000, and have a 20% downpayment, you would have a $250,400 mortgage that would carry for approximately $1565/month (use $625 per $100,000 of mortgage amount as a rule-of-thumb)
The maintenance fees at this building do NOT include Hydro, but include Heat, Water, and Central Air. Factor in another $35/month for Hydro.
So what does it cost to carry this property per month?
Mortgage: $1565.00
Maintenance: $459.59
Hydro: $35.00
Property Tax: $147.48
TOTAL: $2207.07
