Riverdale Rink Rat
Senior Member
I thought it was a bit of a giggle that TREB tried to blame the Land Transfer Tax as well. I bet if a baby gets run over on Bloor, TREB blames it on the LTT.
I thought it was a bit of a giggle that TREB tried to blame the Land Transfer Tax as well. I bet if a baby gets run over on Bloor, TREB blames it on the LTT.
They're saying that's a hoax. Inconsistency of shadowing, etc.
December mid-month figures are out, consistent with recent months.
Sales down 16%, prices up 3% YOY
http://www.torontorealestateboard.c...ket_updates/news2012/pdf/midMonth_Dec2012.pdf
Interesting analysis of 48 housing bubbles.
http://leithwheelerblog.sitecm.com/uncategorized/housing-bubble/#more-341
Indeed it is. Quickly calculated 6 years rental versus larger than average losses and expenses (property taxes and maintenance fees) and it's basically a wash for me.
RBT, I'm not sure I understand what you are writing here. Are you referring to two scenarios, one where you sell and rent, and the other where you retain your unmortgaged home for 6 years and experience price decreases per the graph? If so, did you reflect the 6 years investment income on the sale proceeds in the first scenario?
RBT, I'm not sure I understand what you are writing here. Are you referring to two scenarios, one where you sell and rent, and the other where you retain your unmortgaged home for 6 years and experience price decreases per the graph? If so, did you reflect the 6 years investment income on the sale proceeds in the first scenario?
Yes. Safe investment income is pretty minimal with 5 year GIC's giving 2.2% per annum. The USA is due for another recession in the next 5 years so stock market likely isn't a great choice, plus I have enough exposure there.
Rent: 6 * 12 * 1750 ($1750 is average rent, assume some escalation)
Investment Income: 350,000 * 0.022 * 6 (2.2% APY rate includes an adjustment for compounding)
Sale Commission/Legal/Moving Fees/Time&Effort: (350,000 * 5% + 1500 * 2 + 2000 * 2 + 1500 * 2)
Rent Total out of pocket: $-107,300
Hold: $350,000 - 25%
Other fees: $300/month (maintenance -- average expected fee) + 250/month (property tax average expected)
Hold loss from current paper gain: $-127,100
I do expect to move in the next 5 years. One consideration was listing my unit for sale with myself as the tenant on a 2 year lease at market rent rate.