Condo building versus semi/detached/townhouse (need help)

[blueshirt]

Hi, I need advice on buying a house in todays hot housing market of Toronto and Mississauga. Lately I notice buying semi/detached/townhouse is out of hand since every house is going with 15+ offers and bidding and houses are getting sold ~200K above asking price bringing typical house prices close to $870,000. With 20% down we end up paying monthly mortgage of $2300-2500 plus cost of maintenance, property tax, insurance.

Is it a good idea to switch to condo purchase in Toronto downtown. First of all you can buy the condo below $500K. Mortgage will be low. Easily u can make $2400 per month rent. If condo fees is $900 still in hand you can get is 1500. If the condo gets paid off fast and make it mortage free this can be a good monthly income. About appreciating its true condo don't appreciate much but still the high rental income we get will offset this.

Guys and girls please share your views and idea. Especially someone like real-estate agent can give more insight to this whether in todays market buying condo is best option or not

 

[scylla]

$500K won't get you much in the downtown Toronto condo market. And good condos are going into bidding wars as well and selling above list price. For that price would expect you would end up with a 1 bedroom plus den (expect the den to be more of a tiny alcove rather than a real room) which will not rent for $2400 (it will be lower - probably more like $1600 or $1800). You also need to factor in other costs of purchase (including land transfer and legal fees which will increase the overall cost of your $500K purchase). Additionally, you'll need to consider other monthly expenses (not just condo fees) such as city taxes, possibly hydro, insurance, etc.

It's not easy money. Assume you'll more or less break even month to month after income taxes.

 

[ALRIVAS]

If I understand well you want an investment property.
When buying investments with 20% down normally you breake even or make a small cash monthly.
If I were you I wouldn't care about paying my mortgage fast as that will give you monthly cash flow not a bigger long term equity.By this I mean after 5 years I will refinance and redo it again and now get 2 rents and of course 2 equities.
Toronto downtown as was said has nothing for 500k.
When you buy a freehold you pay fire insurance the utilities are negotiated sometimes you paid them sometimes the tenants.
When you buy a condo the fire insurance is included in the condo fees utilities remain as above.
At this moment there are bidding wars for rent as they are for purchase.
Anywhere inside the GTA the real estate market is hot.
Don't forget after you dispose your investment properties capital gain must be paid.This is the softest way of taxation in canada so in my opinion is ok to pay it,the average payment is 22% of your proffit.
for more info contact me this is getting 2 long.
I hope it helps.

 

[arunsgirl]

Blueshirt, what is the purpose of buying? Do you intend to live in the property or rent out? Downown Toronto condos can go for less than 500K when purchased in preconstruction. My brokerage deals with those mostly, it takes usually about 3 years from when you put money down to move in ready. Prepayments are in staggered, totalling to 20 - 30% before moving in. If anyone wants more, ask me and I can explain more.

 

[svg_dxb]

Where would you recommend buying a CONDO/APARTMENT in? Mississauga or Toronto? Which has a better living for a small family? Say 2 adults. Is $500K a good budget to buy a 3BED?

 

[steaky]

Where would you recommend buying a CONDO/APARTMENT in? Mississauga or Toronto? Which has a better living for a small family? Say 2 adults. Is $500K a good budget to buy a 3BED?

Have you check realtors.ca for some ideas?

 

[sjulien]

There are good properties in the market. This is called seller markets so buyer are confuse where to buy, how to buy on what budget?

I can assist you if you are looking to buy properties in the Mississauga / GTA.

Where would you recommend buying a CONDO/APARTMENT in? Mississauga or Toronto? Which has a better living for a small family? Say 2 adults. Is $500K a good budget to buy a 3BED?

 

[sjulien]

Hi,
It is depends on your budget whether you can afford condo/detached/semi-detached/link/townhouse/stacked townhouse etc..

This is seller market so buyer are very confuse where to buy house in reasonable cost/budget. Most of the houses are in the GTA sold in "Over Asking".

Anyway, I can assist you if you are looking for house in the GTA.

Hi, I need advice on buying a house in todays hot housing market of Toronto and Mississauga. Lately I notice buying semi/detached/townhouse is out of hand since every house is going with 15+ offers and bidding and houses are getting sold ~200K above asking price bringing typical house prices close to $870,000. With 20% down we end up paying monthly mortgage of $2300-2500 plus cost of maintenance, property tax, insurance.

Is it a good idea to switch to condo purchase in Toronto downtown. First of all you can buy the condo below $500K. Mortgage will be low. Easily u can make $2400 per month rent. If condo fees is $900 still in hand you can get is 1500. If the condo gets paid off fast and make it mortage free this can be a good monthly income. About appreciating its true condo don't appreciate much but still the high rental income we get will offset this.

Guys and girls please share your views and idea. Especially someone like real-estate agent can give more insight to this whether in todays market buying condo is best option or not

 

[rizwan malik]

HELLO, Another option just moved slight away from GTA area buy a small condo townhouse in Kitchner/Waterloo area where there are 2 universities. New condo in low price as 300k are available, buy it on 10%, rent it for one year and sell it to get enough profit to have a down payment for Free hold town house in Mississauga and Milton area