What will I make?
If a Condo is costing approximately $300 000 and 20% is required for down payment that means the mortgage will be for $240 000. By using an average of 2.79% for a mortgage rate and an amortization period of 30 Years the monthly mortgage will be $983.00.
The average rent in Mississauga and Vaughan for a single bedroom condo is approximately $1500 on the higher end and $1200 on the lower end, so using the median of $1350 we will calculate our projections.
In One Year:
Rental Income will be: $1350 * 12 = $16 200.00
Mortgage Expenses will be: $983 * 12 = $11 796.00
That means by the end of year one after your profit from the rental will be: $4404.00
The profit can be used towards the mortgage or it can be used as money to save for your next investment.
After 10 Years = $4404 * 10 = $44 040.00
After 25 Years = $4404 * 25 = $110 100.00
After 25 years when the mortgage is paid off in full there will be $110 100.00 of profit generated from condo. As a condo owner, you can resell it at anytime. However if you are able to hold onto the investment property after 25 years, you will make $110 100.00 and have a $240 000.00 mortgage paid off!
How Much Will You Make in 25 Years?
With property values going up on a yearly basis, let’s estimate that on the lower end the property value goes up by $100 000 over the next 25 years (we know it will be much more but for keeping the numbers simple we will say $100 000).
That means from a $60 000 investment into Transit City, the owner after the renters pay him for 25 years will make: $300 000 + $100 000 + $110 100.00 = $510 100.00
$510 100.00 – $60 000 = $450 100.00 will be made from a $60 000.00 investment in 25 years!
This is an opportunity investors cannot resist.
Contact us today at firstname.lastname@example.org or call us at 416 909 2242 to capitalize on the Transit City Condos today!