- Purchasing a $300k condo with 10% downpayment would result in a total cost of $662,929 over 25 years including mortgage payments, taxes, fees, and other expenses. - Renting a similar property for 25 years would cost an estimated $390,000, saving $272,929 compared to owning. - However, if the condo appreciated at 2.7% annually over 25 years, the savings from owning would be $258,697 compared to renting after accounting for the initial costs of purchasing. - The value of an older condo may decrease after 15-20 years however, so the purchaser may lose money depending on market conditions at resale.

1. Justetc (Just Et Cetera) Technologies
Toronto, Canada
How much you pay in total for a
house or condo

2.  I will show a rough calculation on
 How much you pay in total for a house or condo
 I will use some online tools
 I assume that the tools are producing correct
numbers
 For sure, there will be additional metrics to
consider
 i.e. What are involved in the cost
 Let’s see

3. 300k condo
 Down payment – yes matters the more you put , the
more you will save on interest (i.e. Save more money)
 Assume a 10% downpayment
 Let’s calculate Land Transfer Tax
 You will get rebate if you are first time home buyer
 Approximately: 2000 – please verify this number and what are
the conditions that apply; this might depend on where you
purchase
 CMHC insurance
 Considered: 2.4% of the mortgage amount
 In general, the cost will be similar to this
 Monthly mortgage
 1,277.76
 I considered 3% interest rate. Though interest rate is between
1.9 to 2.7% now in general. However, over 25 years, you will
pay more as the rates will change. 3 to 3.5% is a good
assumption overall

4.  For condo tax can be between 900 to 2000
 Depending on where you purchase
 Assumed : $1300
 Condos at 300k can be little newer like 16 to 30 years
of age
 Depends where you purchase
 If you want to buy in downtown, you will not be able to
purchase a condo with 300k
 You have to go over 500k
 Sure, in front of my office in downtown toronto, new
condos are being sold at 2.5 million (starting from 2.5
million)
 Forget about those condos
 We are not brad pit t(spelling or I am not a too movie person),

5.  In East york and/or scarborough south west, you will
find more or less good condos with usually 2
bedrooms and/or with a den within this price
 The maintenance fee will range between 450 to 700$
however mostly will be between 450 to 550$ a month.
 Let’s assume little more because over 25 years the fee
will increase
 Assume 575
 This is your monthly expense:
 1,967.93
 If you rent similar apartment
 You may pay 1100 to 1400$ a month at best 1500$ a month in
the area you can purchase at 300k : assumption and based on
what I saw
 Usually, if you rent in a condo building, then the rent might be
better (personal assumption as the landlord might want to
achieve his/her expenses from renting out)

6.  Renting in apartment building might cost less
 Also, rental apartments do not have amenities such
as Gym, Pool, Sauna, Family Room, Ping Pong
room
 Some apartment might have family rooms
 Anyway...
 Let’s see how much you end up paying in 25
years

7.  The purpose of this tool is little different but it can
give us the numbers
 http://www.creditfinanceplus.com/calculators/house-
flipping-net-profit.php
 acquisition fees = land transfer + Misc Cost = 7700
 Actually, we need to consider $276,480 as the
mortgage amount as the CMHC insurance need to
be added in the mort amount
 Purchase price actually is
 $306,480
 The condo insurance
 Insurances

8. Total in payment
 662, 929.83
 Hence, you end up paying $662,929.83 in 25
years if you keep the condo for 25 years from
your pocket
 So far, we are not interested in gain/loss just Total
Cost to us

9.  Expenses on purchase and renovations -37700.00
 $Capital payment on mortgage 276480.00 (so you
paid the mortgage)
 $Interest paid: 116849.83
 $Current expenses $231900.00 (fees and others)
 Total: 662929.83
 If you rented for 25 years
 390000$ (this is not accurate as rent also increases)
 If you rented you could save:
 272,929.83 with investing (if you know how, it could give you
more)
 I am not promoting investing and this is still a pretty narrow
view
 Total rent 405000 if you consider 1350 on an average per
month
 The diif: 257000 in gain by renting

10.  This is not what we are looking for. This
calculation is not considering the expenses
 We are not getting exactly what we are looking for
 http://www.getsmarteraboutmoney.ca/tools-and-
calculators/buy-or-rent-calculator/buy-or-rent-
calculator.aspx#.VwFPTaQrLIU

11.  What if condo price increases
 However, the conod with 16 to 30 years might rise
in value for next 5 to 10 or 15 0r 20 years
 After 10 or 15 years the condo might not keep the
value
 At some point the value might decrease because
 Maintenance will increase
 I probably should not comment on this – I did not
check much information and/or calculation on this
 So if you sale in 5 or 10 years with better price then
if the condo value decreases at some point – one of
the buyers may actually lose money – will try to find
out how things actually can be in reality.

12.  Let’s see gain if price increases
 The calculation show -131302.83 as net profit (negative)
because you spent around 662k in total
 Then where is the gain: you just saved some rent
 If you assume 390000 as rent for 25 years then the gain =
390000- 131302.83 = 258, 697 approx
 However, if you wait for 25 years, you might lose money as
the value might decrease at some point or might not
increase much (% wise)
 In the calculation 2.7% increase is assumed because of this
long period (I am not an expert on this to put the right number)
 In short period like 3 to 10 years, you might see gain 4 to 6 or
7 or 10% price increase conservatively around 5 to 6% gain
 Provided economy is doing great and people can afford – if people
cannot afford price might not increase much

13.  Bye Bye...