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Buying a Condominim vs Renting at Fifth Avenue
 
  Condominium (5% Down)
1,450 sq. ft.
3 Bedrooms
Fifth Avenue
1,450 sq. ft.
3 Bedrooms
$1,500/month
plus utilities
Condominium (10% Down)
1,450 sq. ft.
3 Bedrooms
Fifth Avenue
1,450 sq. ft.
3 Bedrooms
$1,500/month
plus utilities
 
Purchase Price1       180,000.00                     -         180,000.00                     -  
Down Payment            9,000.00                     -           18,000.00                     -  
Legal Fees and Closing Costs            3,225.00                     -              3,225.00                     -  
Mortgage Default Insurance (CMHC)            4,702.50                     -              3,240.00                     -  
Invested by Renter @ 3.99% (5 yr. GIC)                        -        12,225.00                        -        21,225.00
Mortgage @ 6.85%       175,702.50                     -         165,240.00                     -  
         
Mortgage Payment2            1,214.42                     -              1,142.11                     -  
Condo Fees               180.00                     -                 180.00                     -  
Rent                        -          1,500.00                        -          1,500.00
Property Tax3               276.77                     -                 276.77                     -  
Water Heater/Furnace Rental Charges                 45.00

 n/a 

                45.00

 n/a 

Invested by Renter each month @ 2.5%                         -             216.19                        -             143.88
Total Monthly Payments4            1,716.19        1,716.19            1,643.88        1,643.88
         
Total Payments after 5 years5       115,196.50    115,196.50       119,857.90    119,857.90
         
Condo sold for 105% of purchase price       189,000.00                     -         189,000.00  
Less 6% commission and legal fees         12,840.00                     -           12,840.00                     -  
Less Mortgage Owing

159,655.48

                    -         150,148.21                     -  
Cash          16,504.52      28,708.81         26,011.79      35,031.94
         
Condo sold for 110% of purchase price       198,000.00                     -         198,000.00  
Less 6% commission and legal fees         13,380.00                     -           13,380.00                     -  
Less Mortgage Owing       159,655.48                     -         150,148.21                     -  
Cash          24,964.52      28,708.81         34,471.79      35,031.94
         
1. Closing costs include appraisal fees and land transfer tax but do not include GST on a brand new condominium.
2. Does not include any premium for life insurance on mortgage.
3. Assumes assessment equal to purchase price, a tax rate (municipal + education) of 1.845144% (Thunder Bay 2006) and NO increase in taxes during the first five years.
4. Does not include insurance or utility costs.
5. Does not include purchase and/or maintenance of appliances, or any maintenance or repair costs for the dwelling.

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Last modified: 10/11/15