I follow this area on MLS and notice a lot of listings for 55 Stewart/550 Wellington on the market, these days.
http://www.loftsellers.ca/SUPPLEMEN...5-Stewart-St-103-Toronto-ON-M5V2M9/01001,3050
Let's talk condo fees: for above link a 860 sq foot two level "townhouse", at $488,000, it states about $550 month in condo fees.
That's $6600/yr on fees alone. What do you get? As I understand it, hydro is not included. Nor is you own owner's insurance (I may be wrong on this point). Property taxes are of course extra.
Let's figure another $250/mo - at least - for insurance and property taxes.
All-in that's at least $10,000 /year of your after-tax income just for living here... but wait:
If you buy the unit you'll pay two land transfer taxes: Ont. and T.O. Add at least 1.5% of price: another $7000 capitalized on mortgage, plus interest.
Only paid 10% down? Then pay at least another $7000 in CMHC insurance fees: another $7000 capitalized onto mortgage, plus interest.
Plus a few thousand of closing costs. This means you add almost $20,000 to your mortgage just in these fees from day one in closing costs.
Even if you threw $2000/mo at this debt , factoring in interest your first
2 years of paying 2000/mo goes towards these closing costs!
And don't forget almost $1000/mo for the condo fees, property taxes, insurance plus cable, internet etc.
$3000/mo for two years and you've not touched
one penny of mortgage interest or principle!!
What a scam (for the banks).
You might as well rent it for $3000/mo all-in for a few years, and save your 10% Downpayment of $48,000, saving $20000 in closing costs and land transfer taxes - then take this $68,000 and invested in a mix of income paying funds. e.g I know one conservative mutual fund at $11.50/unit that pays .08/unit each month in income. That's $475 in monthly income if you invest this $68,000 into a fund like this one. Just as an alternate example.
Best part is you can walk away withouth another 4% in selling realtor fees and closing costs when you move on (and these days who lives in the same place for more than a few years - we are very mobile).