Today I received an email from a friend and realtor I know in Kitchener/ Waterloo. Sean Cuddy from Keller Williams Golden Triangle Realty send me this great live in/ buy and rent investment property. The home listed is actually an updated condo townhouse. It is located near a major highway/ express route and is in a growing city.
- 175 Siebert Ave
Kitchener/ Waterloo/ Cambridge make up the Golden Triangle Area just 45min west of Toronto. The city is called KW because Kitchener and Waterloo have grown so much they basically border each other. Having two universities that are expanding, a major technological hub and employer in Research in Motion (RIM) and throw in a handful of insurance company head quarters and you have a very afluent, well earning population.
The median age of people living in KW is around 30 years old. Majority of people make way over the national salary average. Majority of residents are involved in community and have degrees. Being in the Ontario Green Belt, you have preserved land for farming and great farmers markets. Recent additions to the KW area are an Apple store and a future Walmart (huge sign of positive growth).
Lets look at the 175 Siebert Avenue. It is a 2.5 storey home with three bedrooms and 2 washrooms built in 1982. The owners have kept upgrades as required changing the roof and windows in 2009 along with installing laminate flooring on the main and 2nd floor. The home is priced at $149,000 with a very motivated seller. Here is how the home breaks down.
If you are buying the home to live in, I will use a $140,000 purchase price with 5% down. Use the still allowed 35 year amortization and todays best mortgage rate of 3.81% on a 5 year fixed rate. This means your mortgage payments and expenses look like this:
Purchase price: $140,000
Mortgage of: $133,000
Payment: $592.91 per month
Heating, etc: $298.65
Payment Total: $1036.81 per month
Now lets look at the property from an investor point of view. We have very sturdy long lasting floors and most major reno done, so this is a straight buy and rent. With a large student population a home like this can be rented easily for $1000-$1200 per month. With a $140,000 purchase price and a 20% down payment the property costs would be as follows:
Purchase Price: $140,000
Down Payment: $28,000
Mortgage of: $112,000
Heating, etc: $298.65
Payment Total: $931.16 per month
That means if you are renting the property for $1200 you are making over $250 per month extra in cash flow. That is $3000 a year, now who couldn’t use that. Oh and did I mention you will have someone paying off your mortgage and getting appreciation just for owning the home. Think about, it makes sense.
To see the full listing please see 175 Siebert Avenue, Kitchener, ON.
To discuss this or any other property you have in mind please give me a call at 416 909 5044 or contact Sean Cuddy at email@example.com.