Quote:
Originally Posted by littlewenzi
I forgot to mention, this is for investment purpose.
I could walk away if there is a better deal out there.
My budget is low 200's, so there is not a lot to choose from to begin.
I picked Surrey mainly because of the growth in the future, I estimate to sell before 2024.
Wenzi
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Sell before 2024? How much before? If around 2024 that's about 8 years. You will probably make some money but given you will eat costs the first 5, you may actually not.
Remember every loss you net per month initially, you have to make up for when you reach black before selling if you aren't strictly hoping for equity return. You will be paying off the mortgage but for the first 10 years or so you largely pay interest not principal so you're banking on prices raising quite a bit.
1 bedroom units around here rent for between $950 and $1100 a month right now. I would be surprised if you could get more and I'd go with the lower of the numbers for estimations.
Take that number, add inflation every year for the next 10 years, then factor in your costs which are mortgate + strata + property tax + any damage repairs (appliances, etc.) + rental management if you go that route.
That will then tell you when you will turn from red to black (if you are red at all) and how long you have to be in the black until you are making money now completely outside of equity gain.
That then will tell you how much equity you need to gain in that time frame to make a profit. And remember you have to gain equity to actually make a profit because even though you will make money on selling, if you gain or lose equity, you only make back your original down payment basically so you're no better off.