Rental Properties

Here is the next step in the scheme of restructuring your assets. You've sold your house, bought something for yourself to live in, and have "some" money left. Now you can select investment options that would best suit your budget and your needs and wants. Let's see how buying a rental property can work for you.

Condos in Toronto

Buying 1-bedroom condo for renting out / $320,000
$1,180 / month potential cash flow (after expenses)
1-bedroom 1 bathroom condo. 550 sq.f, new building in desirable Toronto location (Liberty Village) with high demand for rent. Also with good potentials for price increase.

You pay: $327,785
Purchase price $320,000 + purchase cost: $7,785 (taxes, lawyer fee)
Your monthly expenses: $520 / month (property tax, condo fee, insurance)
Monthly rent: $1,700
Cash flow: $1,180 ($1,700 - $520)

Total INCOME after 3 years: $80,880
$42,480 from cash flow + $38,400 - from price appreciation 4% a year

Your return on investment is: 8.2% / per year (80,880 / $327,785 = 24.7%)

When you invest in TWO 1-bedroom condos ($640,000), you get:
$2,360 / month - cash flow
$162,000 - total income after sale in 3 years

Buying 2-bedroom condo for renting out / $550,000
$1,900 / month potential cash flow (after expenses)
2-bedroom 2 bathroom condo. Spacious unit 1200 sq.f, 1 parking included, newer building in desirable Toronto location with high demand for rent. Also with good potentials for price increase.

You pay: $565,785
Purchase price $550,000 + purchase cost: $15,785 (taxes, lawyer fee)
Your monthly expenses: $900 / month (property tax, condo fee, insurance)
Monthly rent: $2,800
Cash flow: $1,900 ($2,800 - $900)

Total INCOME after 3 years: $134,400
$68,400 from cash flow + $66,000 - from price appreciation 4% a year

Your return on investment is: 8.0% / per year (134,400 / $565,785 = 24%)

Townhouses in Toronto's suburbs

Buying 3-bedroom townhouse for renting out / $550,000
$1,460 / month potential cash flow (after expenses)
3-bedroom 3 washroom Freehold Townhouse in Newmarket, 2-storey, 1800 sq.f, 1 garage, 2 parking spaces, 8 years old

You pay: $558,975
Purchase price $550,000 + purchase cost: $8,975 (taxes, lawyer fee)
Your monthly expenses: $340 / month (property tax, insurance)
Monthly rent: $1,800
Cash flow: $1,460 ($1,800 - $340)

Total INCOME after 3 years: $184,560
$52,560 from cash flow + $132,000 - from price appreciation 8% a year

Your return on investment is: 11% / per year (184,560 / 558,975 = 33%)

Buying 3-bedroom townhouse for renting out / $670,000
$1,820 / mnth potential cash flow (after expenses)
3-bedroom 4 washroom Freehold Townhouse in Vaughan, 2-storey, 2000 sq.f, 2 garages, 2 parking spaces,finished basement with full bathroom, bedroom and kitchen. Walking Distance To Bus,Shopping ,Vaughan Future Hospital And Minutes To Vaughan Future Subway.

You pay: $681,375
Purchase price $670,000 + purchase cost: $11,375 (taxes, lawyer fee)
Your monthly expenses: $380 / month (property tax, insurance)
Monthly rent: $2,200
Cash flow: $1,820 ($2,200 - $380)

Total INCOME after 3 years: $226,320
$65,520 from cash flow + $160,800 - from price appreciation 8% a year

Your return on investment is: 11.1% / per year (226,320 / 681,375 = 33.2%)