The average size of a new condominium in the GTA is 650 square feet per year, meaning based on average price, it will cost you $330,000. With rental rates on average $2.21 per square foot, you could expect close to $1,450 per month in rent. But will that rent cover your costs? If you put 20% down, a $264,000 mortgage at even 3% amortized over 25 years, your principal and interest costs would be close to $1,250. Monthly condo fees are about 50Â¢ per square foot per month on average and property taxes are about 1% of home value. Add in heat and hydro and you are easily under water.
I don't know where you got that information from but I dont know of any new project downtown that you can rent a 650 sq ft unit for $1,450. Have you seen the rental market over the past 3-4 months? New 1br starts at minumum $1600 with multiple offers. But, by all means let me know when you find that $1,450 unit. I have at least 9 clients who need to find somewhere by November.
There has been a significant rise in rental rates for new products on the market just over the past few months (this has also pulled the rest of the market up). This isn't Realtor BS; this is a fact.