Renting
Average rent in GTA suburb for 3 bedroom home is $2400/month plus utilities $300 per month. And additional tenant insurance $50 per month.
Renting a home costs $2750 per month and $33000 per year.
Owning
On the other hand, if you buy a townhome in GTA suburb of purchase price of $600000 with 10% down payment.
Your monthly mortgage will be $2500 plus $300 utilities, insurance $100 and taxes $300. Your monthly cost will be $3200.
$1200 of mortgage amount will go against your principal, which will be yearly 14,400. Average yearly appreciation 3%equals to $18000. When you minus renting cost $2750 from owning cost $3200.
Renting Vs Owning
You will be paying additional $450 per month and yearly $5400. Now, yearly home appreciation plus collected equity will be $18000 + $14400 = $32400. Minus difference from owning vs renting cost $5400.
Conclusion
You gross gain is $27,000 per year. If home improvement $5000. Net gain will be $22000 against your capital and closing cost ($60,000 + Land transfer tax $4000 + Closing cost $2000) $66,000.
Your net gain $22,000 and capital investment was $66000. Your yearly gain will be 33% while enjoying home ownership.
If you have any more questions, feel free to call me at (647) 981 7284 or write me mail at realtor@ravisohal.com I would be my please to be your realtor for real estate needs.
Thanks for watching my video. This is Ravi Sohal Sales Representative from Royal LePage. Call me today (647) 981 7284.
