Quote:
Originally Posted by JDMDreams
I don't think at these prices in the last 2 years have condos or town houses make sense in terms of returns. Just heard someone bought a one bed at Southgate city for $700, you will never get enough rent out of that to even cover the mortgage.
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Yah pre-sales are commanding crazy prices now. Doesn't really make sense to me - but people are paying them. I don't know how many are investors right now. My wife's cousin just bought into there. People will keep going where they can afford.
But I agree. A 600k mortgage (say you put 25% down on a 800k 2 bedroom), at 3% interest is $2,900 a month. Add in $400 strata fee and say $200 month for property tax, you are looking at $3,500 a month in expenses if you don't cover utilities. Nobody is going to rent that unit for $3,500/month so that you can even break even.