This morning I toured a two bedroom condominium unit with an identical layout to a unit we just purchased. The condo is vacant, and needs new flooring in most of the unit (maybe 600 sq ft of flooring) and could use a paint job and some updated lighting.
It has all the characteristics of an investment I love:
- Investment property in a residential neighborhood
- Near a school
- Near major shopping centers
- Near the highway (I promise, this is a good thing in Kitchener Waterloo; if you’re near the expressway you can get anywhere in 15 minutes)
- Needs cosmetic work and priced accordingly
- Less than 20 years old
The unit I saw is offered for sale at $105,000, which is less than other main floor units have been selling for this year. An identical unit in the complex we bought in is for sale right now for ~$118,000 - it is in better shape, but that’s only a new paint job and some flooring away 
If you invest in this condo for $105,000 with 20% down payment - $21,000 - you will need a mortgage for $84,000. If you get a 5 year fixed rate mortgage for 5.89% (that’s the rate I got in July, and in fact rates are a bit lower now) and amortize the payments over 40 years, your monthly mortgage payment is about $452 a month according to the mortgage calculator I’m using. Condo fees are currently $210.00 a month, and taxes are a shade under $100 a month. Insurance should be under $20 a month.
$452 (mortgage) + $210 (condo fees) + $100 (tax) + $20 (insurance) = $782.00
If you rent your unit out for $825 + hydro a month, you have a great condo paying for itself each month. All you have to do is collect twelve rent cheques each January.
Could your retirement portfolio benefit from the accelerated equity growth real estate can offer you? Call me now for a free consultation about how you can start investing in real estate today!
Benjamin Bach is passionate about helping people build wealth so they can live the life they love. He works with investors from across North America, helping them Retire Rich, and earlier than they thought possible!
Call or email Kitchener Waterloo’s Favourite Real Estate Agent (Gold Award, Kitchener Waterloo Record Readers Select Awards 2007 - 2008) today to learn how you can start your Real Estate Investment portfolio.
Benjamin is a Sales Representative with Keller Williams Golden Triangle Realty in Kitchener Waterloo and would love to answer any questions about buying or selling a rental, income or investment property.
You can reach Benjamin at benjamin(AT)benjaminbach.com or call him at 519 570 4447
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