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Investment Properties under $200,000 in Durham Region

 

Cash Flow 101!

 

One of the most popular properties that TFG Realty Ltd receives interest about is the property with the lower level(basement) that can be rented out while the owner(the potential home buyer) occupies the upper level. Some qualities this property must have are; a separate entrance which gives easy access to the basement for the tenant(s) occupying the lower level, a full bedroom(s), a full bathroom(s), a full kitchen and dining area. All of these basement qualities will attract quality tenants to your home. This type of living arrangement is a wonderful way of making home ownership affordable for virtually all working adults over the age of 18. Luckily for Durham Residents and those out of towners thinking about making the move to Durham, it is an area that has an abundance of these types of properties.

Please note-Many zoning issues, building code, fire and safety provisions must be adhered by to legally add an accessory apartment. Please visit www.durhamrealestateclub.com to learn more about your city/town requirements. 

 

Who are the Ideal Candidates for this type of Property?

 

First time Homes buyers who want to make the transition to home ownership, but may not be financially capable of carrying a mortgage and living expenses on their own just yet. To offset their mortgage payments, renting out the basement which in most cases will carry 80% of your mortgage monthly payment amount 

 

Investors looking for a solid investment to add to their portfolio

TFG REALTY LTD. OFFERS FREE PRE SCREENED TENANTS FOR ALL INVESTMENT PROPERTY PURCHASES. THIS IS THE IDEAL PROPERTY TYPE TO HAVE GREAT TENANTS PAYING OFF THE MORTGAGE. ALSO IF IT IS A LEGAL DUPLEX, WE WILL RENT OUT TOP AND BOTTOM FOR YOU AT NO COST! 

ELDERLY COUPLES WHO WANT THEIR CARETAKER OR FAMILY MEMBER CLOSE BY

 

Here is a detailed example of how this typically works. 

 

Style of  Home, All Brick Detached Bungalow, 

Bedrooms-3+1 (3)bedrooms upstairs, 1 bedroom down,

Bathrooms-1 up, 1 down

Other Features to look for- full en-suite downstairs, 1 full kitchen,. w/ separate entrance making this an ideal property to rent out the basement. 

 

Typical market rent for a basement apartment in Durham will bring in from $750-1100.(Utilities typically paid by Owner on Upper Level due to typically having  only one hydro meter) 

 

Purchase Price of Home-$200,000

 

With $5,000 as a down payment @3.19% 5 year fixed term mortgage, 25 year amortization. Property Taxes $2600/2010.

 

Your payments look like this

 

Percent Down-2.5%

 

First Mortgage-$195,000.00

 

CMHC(Mortgage insurance for mortgages with less than 20% as a down payment are subject to insurance fees, which is blended in your mthly mortgage payments)-$6045.00

 

Total Financing-$201,045.00

 

Mthly Mortgage Payment-$971.14

 

Taxes-$216.67

 

Total Mthly Payment with property taxes blended in-$1126.05

 

Income Required-$44,542.91

 

Monthly Payments-$1126.05 plus approx add $300-400 for heat, water, hydro, cable, internet. 

$1450 will be your average mthly payment all in.

 

-$1000(Basement Rent)

 

$450.00 monthly payment to own your Home!

 

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Please note-You can add your projected rental income to your current income when it comes time to provide your application to your mortgage lender, so the income required will be aided a little by the extra income. Typically your lender will only allow 50% of projected rental to be added to your income. 

 

Durham Region is one of the few centers with such close proximity to a metropolitan city that has such affordable housing.  Durham has  massive appreciation as more Toronto based employees find their way East into Durham Housing. As the 407 approaches, which is projected to be ready by 2015 @ Harmony Road  in Columbus more and more residents will find the convenience factor to Toronto very appealing to make the commute. Hopefully not long after that the 407 will extend to the Hwy 115, which is still being worked out with Provincial Politicians. These reasons along with many other amenities and qualities Durham has to offer residents, Durham Region can expect to see steady appreciation in their property values. 

 

Average Oshawa Home price in

 

Year 2000 November-$135,000

Year 2010 November-$222,250

 

How's that for appreciation!! 

 

Article Written by

 

Brent Foley, B.A 

Broker of Record 

TFG Realty Ltd. Brokerage

905 240 7300