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It's all in the numbers...

 

choose zan molko

 

I recently had a few conversations with two young couples looking to buy a condo in North York.

 

The one family is looking at condos in the $200,000 - $220,000 range. They soon discovered, what I had already suggested to them, that the seemingly more affordable Condos have often times very high maintenance fees.

 

Consequently the actual Price of the Condo becomes less important, but rather the true cost is in the total monthly carrying costs. That is what can make the condo affordable or not.

 

Let's look at the following two examples and the resulting carrying costs.  Based on a 20% down payment and a 5 year Mortgage at 3.15%

 

 

CONDO A

CONDO B

Difference

Price

$ 224,900

$  339,900

 

Taxes

$      1,388

$      1,985

 

Maintenance Fees

$         679

$         261

 

Utilities Estimated

Included

$         130

 
    

20% Down Payment

$   44,980

$    67,980

 

Mortgage

$ 179,920

$  271,920

 
    

Monthly P&I

$         865

$      1,307

 

Taxes

$         116

$         165

 

Maintenance Fees

$         679

$         261

 

Estimated Utilities

$            -  

$         130

 

Monthly Costs

$      1,659

$      1,863

$         204


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From this comparison of two condos currently available in North York, the Price difference is $115,000 but the difference in monthly carrying cost is only $204

 

And by the way, the condo for $339,00 is in a much better location, walking distance to the Sheppard West Subway Station.

 

So folks, it is all in the numbers...

 

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