Real Estate

What to do with a condo in Toronto?

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  • Jan 3rd, 2021 8:24 pm
[OP]
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May 2, 2014
314 posts
86 upvotes
Toronto

What to do with a condo in Toronto?

Am I getting any value by having my capital tied to condo ownership when condo fees (and property taxes) are similar to what people pay in rent?

Background:
I own a condo unit (mortgage paid off) that i rent to my dad at cost just to match the condo fees and property taxes. I do not live in this condo nor does he need to live here as his job is completely remote/work-from-home. condo is also mid-town and close to many amenities and infrastructure.

I live far outside the GTA and currently not settled, but within the next few years, i may decide to return back to Toronto. Some options i am confronted with include:

a) boot my dad out so i can move into the condo.
b) boot my dad out and rent the condo unit for profit. I suspect I could charge $3,000 monthly for the unit, inclusive of utilities and underground parking.
c) Sell the condo and use the proceeds for a down payment on another property. For example, a house that would allow me to rent the basement unit out. Location unknown. Or even, use the proceeds to invest in stocks while i still continue to rent.

The numbers :
- worth approximately 800k. Mortgage fully paid off.
- 2 bedroom, 1400 sq.ft., 2 underground parking spaces, and a storage unit.
- condo fees are about $1,100, and include power and hydro. Property taxes are around 2k. Seems that monthly ownership is therefore around $1,275.
- amenities include an outdoor swimming pool, 24/7 concierge, and weight room.

I realize this may be a broad question and alot of other surrounding factors need to be dealt with separately, such as, where i ultimately decide to settle. I am just looking for initial words of advice or guidance. I also do not know much about rental fees or home ownership prices in the GTA given my absence in the market.

thanks


edit:
i do not mind renting out to my dad at an at-cost basis. right now i am just trying to prepare myself in the event that he would not be living there anymore. Is the condo fee too high that would warrant me looking elsewhere for a property? that is a consideration i am faced with.
Last edited by ausername on Jan 3rd, 2021 1:26 pm, edited 1 time in total.
3 replies
Banned
Apr 5, 2013
5810 posts
2959 upvotes
keenland
ausername wrote: Am I getting any value by having my capital tied to condo ownership when condo fees (and property taxes) are similar to what people pay in rent?

Background:
I own a condo unit (mortgage paid off) that i rent to my dad at cost just to match the condo fees and property taxes. I do not live in this condo nor does he need to live here as his job is completely remote/work-from-home.

I live far outside the GTA and currently not settled, but within the next few years, i may decide to return back to Toronto. Some options i am confronted with include:

a) boot my dad out so i can move into the condo.
b) boot my dad out and rent the condo unit for profit. I suspect I could charge $3,000 monthly for the unit, inclusive of utilities and underground parking.
c) Sell the condo and use the proceeds for a down payment on another property. For example, a house that would allow me to rent the basement unit out. Location unknown. Or even, use the proceeds to invest in stocks while i still continue to rent.

The numbers :
- worth approximately 800k. Mortgage fully paid off.
- 2 bedroom, 1400 sq.ft., 2 underground parking spaces, and a storage unit.
- condo fees are about $1,100, and include power and hydro. Property taxes are around 2k. Seems that monthly ownership is therefore around $1,275.
- amenities include an outdoor swimming pool, 24/7 concierge, and weight room.

I realize this may be a broad question and alot of other surrounding factors need to be dealt with separately, such as, where i ultimately decide to settle. I am just looking for initial words of advice or guidance. I also do not know much about rental fees or home ownership prices in the GTA given my absence in the market.

thanks
sell and buy a house with a couch house in Markham...rent the house and put dad in the coach house for the difference in expenses..then kick dad out when you need it
Sr. Member
Jun 14, 2018
947 posts
1036 upvotes
Why not ask your dad to pay more rent?

It's clear to anyone that you're not getting value by renting your condo out at ~$2000 under market value, but you're renting to your dad, so that's a bit of a different situation.
Deal Addict
Mar 2, 2017
1428 posts
2612 upvotes
Toronto
ausername wrote: Am I getting any value by having my capital tied to condo ownership when condo fees (and property taxes) are similar to what people pay in rent?

Background:
I own a condo unit (mortgage paid off) that i rent to my dad at cost just to match the condo fees and property taxes. I do not live in this condo nor does he need to live here as his job is completely remote/work-from-home. condo is also mid-town and close to many amenities and infrastructure.

I live far outside the GTA and currently not settled, but within the next few years, i may decide to return back to Toronto. Some options i am confronted with include:

a) boot my dad out so i can move into the condo.
b) boot my dad out and rent the condo unit for profit. I suspect I could charge $3,000 monthly for the unit, inclusive of utilities and underground parking.
c) Sell the condo and use the proceeds for a down payment on another property. For example, a house that would allow me to rent the basement unit out. Location unknown. Or even, use the proceeds to invest in stocks while i still continue to rent.

The numbers :
- worth approximately 800k. Mortgage fully paid off.
- 2 bedroom, 1400 sq.ft., 2 underground parking spaces, and a storage unit.
- condo fees are about $1,100, and include power and hydro. Property taxes are around 2k. Seems that monthly ownership is therefore around $1,275.
- amenities include an outdoor swimming pool, 24/7 concierge, and weight room.

I realize this may be a broad question and alot of other surrounding factors need to be dealt with separately, such as, where i ultimately decide to settle. I am just looking for initial words of advice or guidance. I also do not know much about rental fees or home ownership prices in the GTA given my absence in the market.

thanks


edit:
i do not mind renting out to my dad at an at-cost basis. right now i am just trying to prepare myself in the event that he would not be living there anymore. Is the condo fee too high that would warrant me looking elsewhere for a property? that is a consideration i am faced with.
I don't think this is a question for an internet forum full of strangers as it is a question for your dad.

That said, there is obviously an opportunity cost of letting someone live there rent free, but it's also a parent. Are you hard up for money? If not, personally I'd probably let him live there and when the time comes you sell.
Realtor, Investor, CPA

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