|
|
Rent Assumptions - Condo |
Rent Assumptions - Townhouse |
|
|
1 Bed,1 wash,500SF-Dwntwn Tor |
3 bed,2 wash,1200SF - Avg GTA |
|
Mthly rent payment ($) |
1,200 |
1,600 |
|
Additional mthly fees ($) |
Maybe hydro - $40 |
All utilities - $300 |
|
Mthly renter's insurance premium ($) |
25 |
35 |
|
Annual rate increases: (%) |
Rent Control - 2-3% |
Rent Control - 2-3% |
|
|
Purchase Assumptions - Condo |
Purchase Assumptions - Town |
|
Purchase price of home ($) |
300,000 (Dwntwn avg - resale) |
400,000 (GTA Avg resale Town) |
|
Annual appreciation rate: (%) |
5-10% |
5-10% |
|
Realtor fees on future sale: (%) |
5% |
5% |
|
Amount of loan ($) |
285,000 (5% down) |
380,000 (5% down) |
|
Annual interest rate: (%) |
2-3% (variable); 4-5% (fixed) |
2-3% (variable); 4-5% (fixed) |
|
Number of years (amortization) |
20,25,30 (usually 25) |
20,25,30 (usually 25) |
|
Closing costs (not incl in loan): ($) * |
Lawyer (1,200)+Tax (1,000) |
Lawyer (1,200)+Tax (2,500) |
|
Annual homeowner's insurance: ($) |
300 |
1200 |
|
Annual property taxes ($) |
2,500 |
4,000 |
|
Annual maintenance cost ($) |
3,600 (condo fees @300/mth) |
5,000 (upkeep, not upgrades) |
|
|
Other Assumptions |
Other Assumptions |
|
Number of years for the comparison |
Try 10,20 and 30 yrs |
Try 10,20 and 30 yrs |
|
Marginal tax bracket: (%) |
25%-35% |
25%-35% |
|
Before tax return on savings: (%) |
6-8% |
6-8% |
|
Assumed annual inflation rate: (%) |
2-4% |
2-4% |