It's all in the numbers...
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 oftentimes 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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