All Forum Posts by: Christine Ko
Christine Ko has started 1 posts and replied 2 times.
Yeah, I was thinking of doing a HELOC but the issue is, mortgage interest rates in Canada vary widely once terms are up, so every 5 years i don't know what I'm signing up for. My interest rate until 2025 is 2.69% but once it goes higher, I'm worried a HELOC will place too much burden on me financially. They're building a subway stop directly under the building in ~10 years so I know the appreciation would not be insignificant, so maybe I can treat it like any other investment in the sense that I'm paying out of pocket every month for an expected appreciation in the future? I just don't know what else I would do with the money aside from buying a primary property residence...but I don't want to kick myself for selling it now, and then 2 years later it's up $100k
Hi everyone,
I purchased a Jr 1 Bed condo in Leslieville, Toronto right by Dundas and Carlaw back in Jan 2020, thinking it would be my primary residence until I start a family. Then, I started renting it out because I didn’t like living in that unit and also wanted to move to California, so I’m realizing I’m not sure it makes sense from an investment POV since I made the rookie mistake of not seeing it as an investment property first.
I like the idea of holding at least one property that I can use as an investment vehicle, until such a time as I’d like to move into it myself. Is this something I should consider doing? Here are some numbers to help shed light…
Purchase price: $536,000, Sq ft: 513, average price per sq ft is 1081, and the building is 10 years old
Costs:
Interest payments: $10,164.51 a year
Taxes on net rental income: $1331.21
Property taxes: $2,211.60 a year
Property insurance: $497.52 a year
Maintenance fees: $3653.52 a year
**Total expenses**: $17,858.36
**Total gross rental income**: $1821/month or $21,852.00/year
**Difference: +$3993.64**
I guess in my head all the real estate investing I've read said I should be netting a positive cash flow, and I'm not which is why I'm not sure if I should keep it given I am technically netting out positive despite me having to take cahs out of pocket to continue funding the principle payments
I’m debating if I should sell, keep, or port my mortgage over to into another property that makes more sense from an investment perspective and also one I wouldn’t mind living in later when I am ready to settle down?
Thanks everyone for your advice!