The Toronto Real Estate market just seems to defying logic and continues to increase in price (5% yoy) [and competition] for single family homes. Taking the average sale price in the 905 [ ring of homes around the 416] Land Transfer Tax Calculator net of First Time Buyer Rebates.
Average Sale Price in 905 $598,708
Ontario Land Transfer Tax 8,449
Toronto Land Transfer Tax 7,699
Inspection Legals +/- 2,500
Mitigating Factors;
You are impacted by two land transfer taxes PLUS the legal fees to close. I am assuming that CMHC Hi Ratio fees do not apply ( unless you are media where everyone is buying with 5 % down) Average Mortgage in Toronto is $270,000.
Buyers have been reduced by the Bank of Canada reducing restricting amortization terms to 25 years.* (Yet other insured lenders continue to offer 30 year ams on insured mortgages) You will be taking a five year fixed rate because that is prudent with all the rhetoric about increasing interest rates.
Selling after 4 years of ownership will incur the following expenses;
- Lawyer Fees $ 1,600
- Mortgage Penalty at 3 months differential $3,000
- Real Estate Fees assumes 5% but we all negotiate $30,000
- Irrespective of the property taxes and living expenses of heat, hydro, water, insurance repairs gardening, repairs and improvements....
Real Estate is something to buy and hold for decades; raise a family. Plant roots in a community, Join volunteer Groups and Community Watch. Worship, have christenings and weddings. Graduations.
I appreciate the benefits and concepts of home ownership and building equity. I do not believe in Buying to Flip with our Expense and legal structure of ownership.
What do you think? Ready to Buy a house? You're staying put, Right?
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