Brampton - If you are currently renting for $900 per month and were considering a purchase of $250,000 with $20,000 as your down payment and municipal taxes of $1,750 per year, would it make financial sense to buy or continue renting?
You would be best served to BUY for the following reasons:
1. With your payment of $1,297.00 per month, you would pay down your mortgage principal balance by $21,569.00 over 5 years.
2. If you invested your down payment of $20,000.00 plus the cash flow savings from renting of $1,443.00 (mortgage payment and taxes) - $900.00 = $543.00 and generated a standard after tax rate of 4% you would make $12,260.00
** Equity in example #1 - $41,569.00
** Equity in example #2 - $32,260.00
DIFFERENCE TO YOU:
$9,309.00
This example assumes that there is a 0% growth in your property value over 5 years.
· If your property appreciated by 1% per year, you would build $33,136 in equity in the 5 years.
· If your property appreciated by 2% per year, you would build $45,171 in equity in the 5 years.
Merle Donawa, one of Brampton's most experienced realtors, has been helping buyers and sellers in the Brampton Market for over 20 years. You can feel comfortable in knowing that your home needs will be taken care of from start to finish. To list your home with Merle Donawa, Broker, Re/Max Realty Services Inc, 391 Main Street North, Brampton Ontario L6X 1N7, please call 416-888-5576.