Real Estate

Experiances renting condo out

  • Last Updated:
  • Apr 20th, 2019 11:12 pm
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[OP]
Newbie
Apr 7, 2019
9 posts
7 upvotes

Experiances renting condo out

Hi there guys. Would like some info regarding renting new condo out and also how the rental hst rebate process is. My condo is gonna be 2 bedroom and 2 bathroom condo in erin mills.

Do people rent and make monthly profit after bills condo monthly fees and mortgage. Or do you just break even or negitive.

Also when closing i have to pay around 25k hst from my understanding. Then i can apply for the rental rebate. I want to know how much rebate is when leasing condo out.

Thanks in advance for any responses.
7 replies
Sr. Member
May 3, 2013
577 posts
144 upvotes
Toronto
For the hst rebate process, you should consult your lawyer.
As for making a profit with rental income, it depends. How much is your mortgage payment? I would like to say "typically, you it's negative for the first few years, but it gets better after a while because rent increases, and your mortgage decreases". But obviously, someone will find an exception where it's cash flow positive, and point out condo fee increases may outpace rental increase, etc. So lots of variables, you just need to know your numbers and ensure you know where you will end up.
Member
User avatar
Sep 6, 2018
212 posts
88 upvotes
Many new investors renting out condo in GTA have negative cashflow..
Depends on your purchase price and financing...if you will have negative or positive cashflow.

liquidsuite wrote:
Apr 11th, 2019 8:00 pm
Hi there guys. Would like some info regarding renting new condo out and also how the rental hst rebate process is. My condo is gonna be 2 bedroom and 2 bathroom condo in erin mills.

Do people rent and make monthly profit after bills condo monthly fees and mortgage. Or do you just break even or negitive.

Also when closing i have to pay around 25k hst from my understanding. Then i can apply for the rental rebate. I want to know how much rebate is when leasing condo out.

Thanks in advance for any responses.
[OP]
Newbie
Apr 7, 2019
9 posts
7 upvotes
I bought it for 499k and mortgage will be around 375in around 2021. Right now similar blds renting for around $2600. So what do you guys think.
Deal Addict
Jan 26, 2016
1150 posts
908 upvotes
Toronto, ON
liquidsuite wrote:
Apr 13th, 2019 9:04 am
I bought it for 499k and mortgage will be around 375in around 2021. Right now similar blds renting for around $2600. So what do you guys think.

Risks to take into account:
-increase rates may go up
-rents my go down
-you may not be able to find a renter and have a month or more sitting idle
-you may have to pay tax on the profit gained from tax income
-renter could be deadbeat, doesn't pay, etc.
-your downpayment could be growing in the equity market

On the other hand, there are opportunities:
-rents might go even higher than 2600
-interest could go down
-house prices could continue to appreciate while your renter pays our mortgage

I have friends who bought several years ago, and now, not only have condo prices gone up by a whole lot, they are cash positive and the rental is a legit source of income. So taking some risks and hoping the economy does well enough will have its upside.

If you have an income that can support a few hundred dollars extra in the first few years, then you may be in a position to take on the risk. But if you are cash-strapped, then probably not the best idea. But comes down to your appetite for risk.
Newbie
Feb 25, 2015
35 posts
12 upvotes
Vancouver, BC
liquidsuite wrote:
Apr 13th, 2019 9:04 am
I bought it for 499k and mortgage will be around 375in around 2021. Right now similar blds renting for around $2600. So what do you guys think.
Just key in 375K to a mortgage calculator and then deduct annual property tax + condo fees from projected rental income ($2600) to see if you can cash flow...
Jr. Member
Oct 24, 2011
139 posts
99 upvotes
Markham
375k should be less than 2k/mth in mortgage. Depending on how much ur maintenance fee and tax is, i think you might be close to breaking even.

The cost of using a real estate agent for rent is usually 1 month's rent (steep i know...), but a good agent will (hopefully) screen out the bad renters for you.

If cashflow isn't an issue (even if you need to chip in), keeping an investment property is generally a good idea.
Member
May 27, 2013
328 posts
17 upvotes
I find realtors lazy with rentals . As they will take more time with selling a house instead of showing a rental as they will make more money

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