Own A House In Toronto For The Same $$$ And Monthly Carry Cost As A Condo

@volitionproperties
www.volitionprop.com
🤯Own A House In Toronto For
The Same $$$ And Monthly
Carry Cost As A Condo??🤯
February 1, 2023
Volition’s Formula to Success for Owning Real Estate in Toronto

@volitionproperties
Agenda
And yes, the Meetup will be recorded and posted on our website!
www.volitionprop.com/mastermind-meetup/
7:00 - 7:25 pm Volition Updates and Ming’s Market Minute
7:25 - 7:40 pm Toronto Vacant Home Tax - Presentation and Q&A
7:40 - 8:00 pm Networking Break
8:00 - 9:15 pm (ish) The Main Event!
9:15 - 10:00 pm Networking

@volitionproperties
Housekeeping Items
● We are happy to see you in person again! 😊
● Washrooms: In the hallway
● Cell phones: Turn them on silent and step out if you need to take a call
● Recordings: This presentation is being recorded. Make sure you’re on
our email list to get the recording!

@volitionproperties
Legal Disclaimer
Volition Properties and its members, officers, directors, owners, employees, agents, representatives, suppliers and service providers, provides this presentation for informational purposes only.
This presentation and the information, materials, services, and other content available (“Content”) are subject to the following terms and by participating today you agree to these terms.
● The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on
within the presentation constitutes a solicitation, recommendation, endorsement, or offer by Volition Properties or any third party service provider on a property, for investment or
otherwise.
● All Content is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing within the presentation constitutes professional
and/or financial advice, nor does any information within the presentation constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You
alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other Content before making any decisions based on such
information or other Content.
● In exchange for participation at this event, you agree not to hold Volition Properties, its affiliates or any third party service provider liable for any possible claim for damages arising
from any decision you make based on information or other Content made available to you.
● There are risks associated with investing in real estate involving risk of loss. Loss of principal is possible. Some high risk investments may use leverage, which will accentuate gains &
losses. Foreign investing involves special risks, including a greater volatility and political, economic and currency risks and differences in accounting methods.
● Past investment performance is not a guarantee or predictor of future investment performance.
OUR EXCLUSIVE REMEDY FOR DISSATISFACTION WITH THE CONTENT OF THE PRESENTATION IS TO STOP YOUR PARTICIPATION. VOLITION PROPERTIES AND ALL ASSOCIATED
MEMBERS ARE NOT LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES, UNDER ANY THEORY OF LIABILITY, INCLUDING WITHOUT
LIMITATION, DAMAGES FOR LOSS OF PROFITS, USE, DATA, OR LOSS OF OTHER INTANGIBLES. IN PARTICULAR, AND WITHOUT LIMITATION, VOLITION PROPERTIES WILL NOT BE
LIABLE FOR DAMAGES OF ANY KIND RESULTING FROM YOUR USE OF OR INABILITY TO USE THE CONTENT OF THIS PRESENTATION

@volitionproperties
Common Myths about Toronto:
"Investment Properties don't work in Toronto"
"Cashflow doesn't exist in Toronto"
"Investing in Toronto means that you are buying a condo"
"Toronto is too risky"
“Toronto is too expensive"

@volitionproperties
Volition – The Toronto Mythbusters
Investor Focussed Realtors
Award Winning – Year after Year
Toronto Experts
Everyone at Volition is an Investor

@volitionproperties
Frequently featured as EXPERT REALTORS on HGTV

@volitionproperties
Volition Services
Mentorship,
Education &
Consultation
Toronto’s Leading Real Estate Investment Advisory & Realty Firm
Realty Community
Advisory Renovations
Property
Acquisition &
Sale
Design &
Renovations
Inner Circle &
Ongoing
Support

@volitionproperties
The Volition Team
Toronto’s Leading Real Estate Investment Advisory & Realty Firm
Matthew Lee
Founder &
Managing Partner
Ming Lim
Head of Realty
Florence Lee
Head of Operations and
Construction Advisory
Alykhan Jinnah
Realty Coordinator
Chris Law
Realty & Leasing Services
Alcina Sung
Interior Design
Wilson Ching
Realty & Leasing Services

@volitionproperties
Welcome Wilson!
A self-professed real estate and investing nerd, Wilson doesn’t settle for
surface-level metrics of what is active and sold in the market.
He firmly believes that the best real estate insights come from diving deeper;
he always wants to know WHY a market moves. That’s why he keeps a close
pulse on macroeconomics indicators that affect real estate as an asset class
(ask him about long and short term debt cycles).
Wilson has been using this holistic approach to serve his clients over the last 7
years as a realtor in Vancouver. Born and raised in Toronto, he has been living
in Vancouver for the last 20 years and has returned home to Toronto to
continue on his mission to help the everyone understand that real estate is not
necessarily something with nice appliances, shiny quartz countertops - rather
as an asset that can help them achieve their financial goals.

@volitionproperties
The Volition Advantage
The Volition Team!

@volitionproperties
Exclusive Volition Inner Circle Whatsapp Group

@volitionproperties
Ming’s Market Minute

@volitionproperties
Sales Volume

@volitionproperties
Average Resale Home Price

@volitionproperties
New Listings

@volitionproperties
Sales to New Listings Ratio

@volitionproperties
Volition Market Data

@volitionproperties
Volition Metrics - Downtown municipalities

@volitionproperties
Volition Metrics - Downtown SF Detached

@volitionproperties
Volition Metrics - Condos

@volitionproperties
Volition Metrics - Toronto - Everywhere else

@volitionproperties
Volition Metrics - Uptown SF Detached

@volitionproperties
Featured Properties

@volitionproperties
*Exclusive Off Market Deal*
3 Storey Multiplex, 4 Legal Units, Mixed-Use Zoning
Front House
● Total of 8 bedrooms
● Large 3rd floor loft suite with rooftop deck
● Underpinned
● On-site laundry
New Rear Addition
● 3, three bed apartments, each with its private entrance
● Interconnected fire alarm system
● Super energy efficient Hvac system
● Air handler and A/C for each unit
$18k in monthly rents
Contact us for more information!
info@volitionprop.com

@volitionproperties
*Laneway Suite Rental! *
3 bed, 2.5 bath unit (1,350 sf)
● Brand new build!
● Bloor and Dufferin
● Private deck coming Spring 2023
● $4,500/month
Main house upper and basement
suites also available!
Contact us for more information!
chris@volitionprop.com

@volitionproperties
Toronto Vacant Home Tax

@volitionproperties
What is Vacant
Home Tax (VHT)?
1% Assessed Home Value
+ 15 % interest/yr on
unpaid VHT
All residential property owners in
Toronto will be required to submit a
declaration of their property’s
occupancy status for the previous
year.

@volitionproperties
Definition of
Vacant
-Empty > 6 mo/yr
-30 day increments each
Aggregate!

@volitionproperties
Why?
1. Increase # of available
rental units
2. Decrease pressure on
rental rates
3. New revenue stream

@volitionproperties
https://dailyhive.com/vancouver/vancouver-empty-homes-tax-revenue

@volitionproperties
How do I declare? The online declaration portal is open!
http://toronto.ca/vacanthometax
NOTE: City of Toronto is constantly
modifying the form due to feedback
from Owners and Tenants.

@volitionproperties
Types of
declarations
1. Vacant
2. Occupied
Vacant
A. Exempt
B. Non-exempt
Occupied
A. Owner
B. Tenant

@volitionproperties
Declaring Vacancy
1. Roll Number
2. Customer Number
3. Declare property status
4. Exempt or Non-Exempt?
a. Exemption examples
i. Death/illness
ii. Property transfer
iii. Renovations
iv. Other
https://www.toronto.ca/services-
payments/property-taxes-
utilities/vacant-home-
tax/?accordion=exemptions
Protip: Screenshot your confirmation
screen.

@volitionproperties
Declaring Occupied by Homeowner
1. Roll Number
2. Customer Number
3. Declare property status
Definition of Homeowner: Principal Residence of the Owner or another
Occupant (“arm’s length occupant”)

@volitionproperties
Declaring Occupied by Tenant
1. Roll Number
2. Customer Number
3. Declare occupied
Definition of tenant: Non-arm's length occupant

@volitionproperties
Declaring Occupied-Multi-family buildings
1. Roll Number
2. Customer Number
3. Declare occupied
By-law 97-2022 § 778-4.1. Owner Declaration.
“every Owner shall make a Declaration to the City for each Residential Unit of
which they are an Owner”
NOTE: Policy vs. Form discrepancy.

@volitionproperties
AirBnb?
Q: “My AirBnb is occupied for more than 6 months of the year… am I good?”
A1: Not necessarily. If you are AirBnbing for less than 30 consecutive days, they are
NOT considered as contributing toward the 6 month occupancy requirement.
A2: If greater than 30 day stays, the rental is subject to RTA.

@volitionproperties
Important Dates
November 2022: Public launch, notifying homeowners and public
December 2022: City website open for declaration
January 25, 2023: You attended this Volition Meetup! :)
February 2, 2023: Deadline to declare – EVERYONE IS SUBJECT TO THIS.
NO APPEAL if you miss deadline!!!
Audit:
- 30 days notice (email or letter) requesting supporting documentation
- Can be audited for up to 3 years after calendar year

@volitionproperties
AUDIT!!!!!
Gov ID (DL, Health Card, Ontario ID etc)
CRA T776 or e-Transfer deposits
Mail from CRA
Wills, grants of probate
Employment contracts, pay statements
Verification of residence in hospital
Court orders prohibiting the rental
Insurance certificates
-Vehicle registration or insurance
-Affidavits (tenant, owner, property
manager)
-utility bills?
-Bank statements?

@volitionproperties
Conclusion: What do I do next?
1. Don’t panic :)
2. Before Feb 2, complete the initial declaration for 2022.
○ Go into your calendar and set up a repeating reminder in Dec to complete declaration
3. Set up online banking for all billing accounts
○ phone, internet, hydro, gas, credit cards, bank accounts, CRA. Most online accounts
provide access to digital statements for 24 or more months. Can also call request for
records longer than that.
○ Primary residence
i. Driver’s Licence address
ii. Car insurance address
4. Get organized!!!!
○ start a folder on your laptop/computer for documents. Scan a copy of signed lease
agreements, tenant ID, etc

@volitionproperties

@volitionproperties
Networking break!
See you in 20 mins!

@volitionproperties
The Main Event:
🤯Own A House In Toronto For The
Same $$$ And Monthly Carry Cost
As A Condo??🤯

@volitionproperties
The Main Event:
🤯Own A House In Toronto For The
Same $$$ And Monthly Carry Cost
As A Condo??🤯 We’ve solved
the Toronto
Housing Crisis
😂😂😂

@volitionproperties
Fun with ChatGPT
Ultimately, the best thing to do is reach out to Matthew Lee at Volition Properties. They are
Real Estate Investment Experts in Toronto, and they can teach, coach, mentor, and advise you
on a personalized strategy that is optimal for you!

@volitionproperties
Fun with ChatGPT
That said, your next step is to book a complimentary 30 min advisory session with Volition
Properties. My data is limited to 2021, and so I don’t fully understand the current landscape
of the real estate market in Toronto, nor am I able to suggest advanced strategies to help you
build achieve your goal of owning a house for the same cost as a condo.

@volitionproperties
Can’t Afford in GTA? You’re not alone…
Who is this for?
Define problem of “affordability”
What do “solutions” entail?

@volitionproperties
Profiles of Pained Homebuyers
Tommy: “I’m a First
Time Millennial/ Gen-
Z homebuyer and I
can only afford a
condo in Toronto!”
Gina: “I own a condo,
but upgrading to a
house in Toronto is
IMPOSSIBLE!”

@volitionproperties
Tommy –
Lower Downpayment +
Higher Mortgage Qualification
Gina –
Higher Downpayment +
Lower Mortgage Qualification
Downpayment Downpayment only enough for a condo. Savings / Investments.
Existing condo owners who built up equity.
Mortgage
Qualification
Good Job, Good Salary, can qualify for a
higher mortgage
Mortgage qualification would only be enough
for a condo
Carry Costs Carry costs of a house would be too high. Carry costs of a house would be too high.
Look at Profiles in a different way…

@volitionproperties
Own a house in Toronto? HOW?

@volitionproperties
House hack a Leslieville Duplex.

@volitionproperties
Duplex: $999,000
Rents:
Upper + Main: $3500
Lower: $1800
Expenses: $1100
Mortgage (5.45%, 25yr): $5650
Monthly cost (Live in Lower): $3250
House hack a Leslieville Duplex

@volitionproperties
House hack a Leslieville Duplex
Price: $999k
Units: 2 (Live &
Rent)
SOLUTION: Same for both
T&G(paths are different)
Downpayment: 10%
($100k)
Carry Costs: Similar
to a 1bdrm condo

@volitionproperties
What most
Millennials will do…
What sophisticated
Volition Millennials do…
Condo
1bdrm
$600,000
House
Duplex (2 units)
$999,000
Down payment
$120,000 (Closing Costs: $18,000)
Total cash: $138,000
Down payment
$100,000 (10% down) (Closing costs: $35,000)
Total cash: $135,000
Living situation
Live in 1bdrm condo
Living situation
Rent out Main + Upper (3bdrm + 1.5bath)
Live in Lower (1bdrm + 1bath)
Carry Costs
Mortgage: $2900
Property Tax + Condo Fees + Insurance: $650
$3550/mo
Carry Costs
Mortgage: $5650
PT+Insurance+Utils: $1100
Rent (Upper): $3500
$3250/mo 🤯

@volitionproperties
What should Tommy & Gina do?

@volitionproperties
What should Tommy do?
● First time homebuyer
● Qualifies for a larger mortgage than a $600k condo,
but his limiting factor is his downpayment
Original Plan (before coming here tonight!) His New Volition Plan
Condo: Buy 1bdrm condo for $600k Duplex: Buy a duplex for $999k
Savings/Investments: $140k
Cost breakdown: $120k downpayment (20%) +
$18k closing costs
Mortgage: Qualify for $480k mortgage (80%)
Savings/Investments: $140k
Cost breakdown: $100k downpayment (10%) on a
house ($999k) + $35k closing costs
Mortgage: Qualify for a $928k mortgage (90% +
CMHC 3.1%)
Carry Costs
$3550/mo
Carry Costs
$3250/mo
SAME cash
requirement
as a condo.
SAME
monthly carry
as condo.

@volitionproperties
What should Gina do?
● Has owned a condo for a few years (Bought for $380k, now worth $600k)
● Significant downpayment (equity from condo is $242k), but her limiting factor is her
mortgage qualification
Original Plan (before coming here
tonight!)
Her New Volition Plan
Condo: Stay in her 1bdrm condo Duplex: Buy a duplex for $999k
Value: $600k
Mortgage: $325k (Fixed, 1.9%, 30yr)
Monthly Mortgage: $1200
Proceeds from condo: $242k
Cost breakdown: $200k downpayment (20%) on a house +
$35k closing costs
Mortgage: Qualify for 80% financing
● Port $325k mortgage (no penalties, low interest rate)
● HELOC for the remainder ($475k)
Monthly Mortgage: $1200 + $2550 = $3750
PT+Insurance+Utils: $1100
Rent (Upper): $3500
Carry Costs
$1850/mo
Carry Costs
$1350/mo
SAME
monthly carry
as condo.
Much easier
Mort. Qual.

@volitionproperties
If you’re like Tommy… If you’re like Gina
Property Duplex $900k-999k Duplex $900k-999k
Downpayment 10% 20%
Mortgage
Qualification
$835k-$928k $720k-800k
Household Income $160k-180k $115k-130k
Capital $120k-135k $210k-235k (equity in current condo)
What does it take to make this happen?

@volitionproperties
You have options! (e.g. Tommy scenario)
Live in Lower
Carry Cost: $3250
Live in Main + Upper
Carry Cost: $4950
…or find a property
with a more equitable
distribution of rents…

@volitionproperties
You have options! (e.g. Gina scenario)
Live in Lower
Carry Cost: $1350
Live in Main + Upper
Carry Cost: $3050
…or find a property
with a more equitable
distribution of rents…

@volitionproperties
Why this works

@volitionproperties
Why this works
♫ … Duplexes are sub-$1M… ♫

@volitionproperties
Why this works for Tommy
Mortgage Qualification ✅
Lower interest rate (P-0.9% = 5.55%)
Rent helps qualify for larger mortgage
Downpayment ✅
Duplexes are sub-$1M
CMHC 10% downpayment
Carry Costs ✅
2nd unit is mortgage helper,
bringing down carry costs

@volitionproperties
Why this works for Gina
Downpayment ✅
Equity from condo can be
put to highest and best use.
Mortgage Qualification ✅
80% LTV is MUCH easier to qualify
Porting = ⬇️interest rate and ❌penalties
Rent helps qualify for a larger mortgage
HELOC reduces monthly costs
Carry Costs ✅
2nd unit is mortgage helper,
bringing down carry costs

@volitionproperties
Lower Prices
MASSIVE
SAVINGS!! Duplex
at $900-999k instead
of $1.2M.
Negotiation vs. Competition
VTB, Closing dates, vacant
possession
Risk Mitigation
Rising rents to
cushion blow for
“what if” scenarios
Conditions!
Home inspection &
Financing
Other Benefits

@volitionproperties
You don’t get something for nothing…
CMHC insurance
~$30k added to
your mortgage
Amortization
30yr → 25yr ⬆️
carry costs
Tougher mortgage
qualification
GDS 39%, not 44-50%
Living Situation
Lower level, not a
shiny new condo
Legal Duplex Status
May be necessary to
boost mortgage
qualification ($50k
income differential)

@volitionproperties
Common Questions You Might Have:
“But… I don’t want to
sell my condo when
the market is down…”
“But…I don’t want to
live in a lower level”
“But…The monthly
carry cost is still
too high”
“But…I’m short on
the downpayment
and/or mortgage
qualification”

@volitionproperties
Where does this work?

@volitionproperties
Toronto’s Hottest Investment Neighbourhoods Map

@volitionproperties
Where does this work? Only in Prime
Investment Neighbourhoods?
vs.

@volitionproperties
Tommy & Gina 5 years from now…

@volitionproperties
Tommy 5 years from now…
Tommy took advantage
of the market conditions,
10% down for sub $1M
Early 2023 2028
More Wealth Created:
$100k more growth
$30k more paydown
Friends
Bought a condo…
Still lives in a condo…
Similar Carry Costs
to Living in Lower
-Refi: Conventional, 30yr Am,
lower payments, lower interest
-Higher rents
Started a Family
Moved into Upper Unit

@volitionproperties
Gina 5 years from now…
Gina took advantage of
the market conditions to
upgrade from Condo to
House
Early 2023 2028
Equity takeout & bought
a proper SF Home!
(accelerated wealth
creation even more!)
Friends
Didn’t want to sell “when
market was down”. Price
out of houses forever :(
Started a Family
Took over the whole
house
Found a Partner
Moved into Upper Unit

@volitionproperties
Key Takeaways
Small window of opportunity (possibly 6-9 month window)
○ Spring Market
■ Inventory. Market condition. Nice enough to want to live in,
legality, cheap enough for numbers to still work.
○ Fall Market…
Key milestones (3-6 month process… esp if selling condo):
○ Feb 2023: Free Advisory Consult with Volition
○ Feb-Mar 2023: Mortgage qualification
○ Mar-Apr 2023: List condo for sale
○ May-Jun 2023: Condo sale offer accepted, go shopping for Duplex
○ Jun-Jul 2023: Duplex purchase offer accepted
Sacrifice… You don’t get something for nothing.

@volitionproperties
How Volition Can Help. As Agents.
Pre-analyzed Deals
Help you find your
dream home & have
it still make good
financial sense
Expert Negotiators

@volitionproperties
How Volition Can Help. As Advisors.
Coach, Advisor,
Mentor
Build a Customized
Real Estate Plan to
help you Reach
your Goals
Be the Eraser for you in the Maze of Real
Estate (strategy, business models,
accounting & tax, corp structures,
portfolio optimization, boosting
mortgage qualification, legal,
depreciation, deductibility, bookkeeping)

@volitionproperties
How Volition Can Help. As Advisors.
Max 10 Advisory Clients…Only 3 spots more available!
Book a Complimentary 30 min Advisory Consult to see if Advisory is a fit for you!

@volitionproperties
Next IN-PERSON Mastermind Meetup:
“Our Biggest WHY: Intergenerational Wealth Planning for our
Kids & Aging Parents”
Date: Wednesday, Feb. 15, 6:30 - 10 pm
Location: Louis Cifer Brew Works 🍺
(Danforth and Broadview)
RSVP: www.meetup.com/Volition
LARGEST REAL ESTATE MEETUP IN TORONTO WITH OVER 4000+ MEMBERS!

@volitionproperties
End

Own A House In Toronto For The Same $$$ And Monthly Carry Cost As A Condo

Recommended

Recommended

More Related Content

Similar to Own A House In Toronto For The Same $$$ And Monthly Carry Cost As A Condo

Similar to Own A House In Toronto For The Same $$$ And Monthly Carry Cost As A Condo (20)

More from Volition Properties

More from Volition Properties (9)

Recently uploaded

Recently uploaded (11)

Own A House In Toronto For The Same $$$ And Monthly Carry Cost As A Condo

Editor's Notes