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Can You Get 400% ROI From Investing In Toronto Condos?

Originally posted on: March 28, 2015
Last updated on: June 15, 2016
Filed under: condo investment investment financials toronto condos new condos real estate investment roi condo deals pre-construction condos

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Last updated on: February 18, 2015
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Last updated on: February 18, 2015
Filed under: art shoppe condos midtown condos midtown yonge and eglinton yonge and eglinton condos new condos toronto condos art shoppe art shoppe condo

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Originally posted on: January 29, 2015
Last updated on: January 29, 2015
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Originally posted on: December 25, 2014
Last updated on: December 31, 2014
Filed under: 2015 new year 2015 year christmas merry christmas love joy gift giving seasons greetings thank you holiday holiday season grateful best wishes

Can You Get 400% ROI From Investing In Toronto Condos?

March 28, 2015 - Updated: June 15, 2016

“Can I make money in Toronto Condo market and how much can I make? Am I too late in the game?" Questions I get asked regularly!

Coin Graph

There is no safe commodity currently appreciating in value throughout Toronto quite like real estate. The Greater Toronto Area’s persistent outward expansion and population growth have strapped a rocket to demand for Real Estate of every style, shape, size and price point in every metropolitan neighbourhood’s local market. The international real-estate investment community has recognized Toronto’s resilience and adaptability in the face of change and bolstered our city’s profile with an ongoing influx of demand for development opportunities in Toronto.

 

Mark Twain once observed, “Real estate is always a good investment. God isn’t making it anymore!” Even modest studio condo units across Toronto have repeatedly exceeded cautious market forecasts over the previous few years, thanks in part to more reasonable prices and good selection of inventory than the city’s fluctuating availability of single-family homes could offer. People will always require space to call their own. Just as importantly, they will always pursue the most comfortable, attractive and conveniently located surroundings the market can provide at an enticing price point.

 

If purchased for Investment the entry level investment in Toronto Condo market are studio units, also called bachelor units, can generate unbelievable return on comparatively reasonable investment.

 

Consider a studio unit purchased at $201,900. Assuming a 20% deposit of $40,380 and a 2.79%, 30-years-amortization mortgage*, even a relatively humble condo can immediately deliver a 13.2% rate of return from rent within its first year. After ten years, one-third through the mortgage’s life, it could deliver up to 25.5-per% returns annually.

 

In terms of total profit, that translates to a total 33.2% rate of return from profit in the first year of ownership and an astonishing 390.4% after a decade. As the Toronto condo market thrives and grows at a record-challenging pace, the opportunities to harness and grow a revenue stream of this magnitude have never been more abundant or rewarding. Nothing would please me more than to lock in your claim today to an unrivaled chance at financial freedom. The numbers tell all the truth you should need.
 

BUYING A CONDO AS AN INVESTMENT
All examples are based on current opportunities.
STUDIO UNIT
PURCHASE PRICE: $201,900
DEPOSIT (20%) $40,380, MORTGAGE OF $161,520
(MORTGAGE: 2.79%, 30 YEARS AMORTIZATION)
MONTHLY MORTGAGE AMOUNT:      $661.44
CONDO MAINTENANCE FEE:             $154.84
MONTHLY PROPERTY TAX:                 $131.19
*capital gains are calculated using an annual appreciation of 4% for Toronto Condos
(Condos in Toronto has averaged 5% over the last 10 years)
*rental rates subject to 3% annual increase

YEAR YEAR 1 YEAR 5 YEAR 10
1. Condo Value: $209,976.00 $245,642.22 $298,861.32
2. Total Monthly Cost: $947.47 $985.64 $1,001.44
3. Monthly Rent: $1,100.00 $1,275.20 $1,478.31
4. Annual Rent Profit: $1,830.36 $3,474.72 $5,722.44
5. Annual Mortgage Principal Paid: $3,491.86 $3,903.62 $4,487.26
6. Annual Return from Rent: $5,322.22 $7,378.34 $10,209.70
Annual rate of return from rent: 13.2% 18.3% 25.3%
7. Capital Gains: $8,076.00 $43,742.22 $96,961.32
8. Total Rent Profit So Far: $1,830.36 $9,717.63 $20,983.03
9. Total Mort. Principle Paid So Far: $3,491.86 $18,474.36 $39,710.88
10. Total Profit: $13,398.22 $71,934.21 $157,655.23
RATE OF RETURN FROM TOTAL PROFIT 33.2% 178.1% 390.4%
1+DEN UNIT
PURCHASE PRICE: $336,900
DEPOSIT (20%) $67,380, MORTGAGE OF $269,520
(MORTGAGE: 2.79%, 30 YEARS AMORTIZATION)
MONTHLY MORTGAGE AMOUNT:      $1103.71
CONDO MAINTENANCE FEE:             $306.25
MONTHLY PROPERTY TAX:                 $218.69
*capital gains are calculated using an annual appreciation of 4% for Toronto Condos
(Condos in Toronto has averaged 5% over the last 10 years)
*rental rates subject to 3% annual increase

YEAR YEAR 1 YEAR 5 YEAR 10
1. Condo Value: $350,376.00 $409,890.36 $498,694.30
2. Total Monthly Cost: $1,628.02 $1,677.46 $1,728.71
3. Monthly Rent: $1,850.00 $2,144.66 $2,486.25
4. Annual Rent Profit: $2,663.74 $5,606.4 $9,090.48
5. Annual Mortgage Principal Paid: $5,860.48 $6,513.73 $7,487.61
6. Annual Return from Rent: $8,524.22 $12,120.13 $16,578.09
Annual rate of return from rent: 12.7% 18% 24.6%
       
7. Capital Gains: $13,476.00 $72,990.36 $161,794.30
8. Total Rent Profit So Far: $2,663.74 $14,142.15 $30,536.78
9. Total Mort. Principle Paid So Far: $5,860.48 $30,827.00 $66,263.03
10. Total Profit: $22,000.22 $117,959.51 $258,594.11
RATE OF RETURN FROM TOTAL PROFIT 32.7% 175.1% 383.8%
THIS IS HOW THE RICH GET RICH!
Disclaimer: These calculations are intended to provide illustrative examples based on stated assumptions. Calculations are meant as estimates only and are not intended to be kept or used for any practical purpose. They are based on information from sources believed to be reliable and accurate and are not intended to be used as a substitute for professional financial advice. Purchasers, both end users and investors, should consider obtaining advice from Realtor or financial advisor before making any financial decision. Actual outcomes will depend on a range of factors.


Virtually nothing else you could safely invest your hard-earned money in is as likely to generate such an efficient 400% ROI in as little as ten years. Every day that passes without seizing these prime real estate investment opportunities throughout Toronto Condo market is a day spent dismissing a portfolio strengthened by the world’s most sound, profitable assets. Why wait one more day?

There has never been a more exciting time than the present to reap the unprecedented profits flowing from our city’s most attractive investment opportunities. Register now to tap into the Toronto condo market’s incredible investment deals, insider deals, and bulk deals.

 

Your investment advisor and friend in real estate,
Sunny Batra
www.SunnyBatra.com/VIPRegistration

 


Tagged with: condo investment investment financials toronto condos new condos real estate investment roi condo deals pre-construction condos
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Comments (2)

Posted by: Joe Q.
April 1, 2015 @ 11:40 am
I have two comments: The first is that the condo maintenance fees you list in your table above seem unrealistically low. Typical condo fees are in the $0.50 per sq ft range in Toronto. Applying this to your studio example implies that either (a) the condo fees are being held artificially very low, which is a warning sign, or (b) it is an absolutely tiny unit, in which case one wonders if you can collect $1100 monthly rent for it. The second comment is that your calculations do not account for rental vacancies, for increases in the condo fee over time, or the fact that you may not be able to raise your tenant's rent by 3% annually. Average condo rents in Toronto are nearly stagnant (increases of around 1% or less per sq ft, year-over-year). These factors would significantly affect the outcome of your calculation. These issues are part of why the investment community in general is not allowed to use predictions when marketing their products (it is illegal). I recognize that the real-estate community does not have these same restrictions, you are free to publish material like this.
Posted by: EquityVal
March 28, 2015 @ 7:16 pm
Sonny, This seems like a great deal. How many condos do you own? Can you give us specific examples of where you have purchased and what you paid? EV

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