Case Study - Affordability Analysis
Scenario: Young Couple each making $50K a year with a saved deposit of $50K looking to achieve home ownership & potential Investment Income
'Traditional' Home
Ownership
Purchase of a 1 bedroom 1 bathroom condo or townhouse within 40km of Caledon. Approximately 600 sqft
Purchase of Condo: $519,900
(Average listing price found on MLS)
Mortgage
Downpayment
Mortgage Principal
$519,000
$50,000
$469,000
Hybrid Living
Ownership
Purchase of a unit with land lease. ???Sqft of indoor living space and ???sqft of outdoor living space..
Purchase of 1 Units: $159,000
(Based on the Retreat Package)
Mortgage
Downpayment
Mortgage Principal
$159,000
$50,000
$469,000
Hybrid Living Ownership & Investement Unit
Purchase of a unit with land lease. ???Sqft of indoor living space and ???sqft of outdoor living space..
Purchase of 2 Units: $318,000
(Based on 2 Retreat Packages)
Mortgage
Downpayment
Mortgage Principal
$319,000
$50,000
$268,000
Monthly 'Traditional' Home Ownership Expenses
Monthly Hybrid Home Ownership Expenses
Monthly Hybrid Home Ownership & Rental Expenses
Mortgage Payment*
Property Tax
Land Lease
Insurance
Utilities
Repairs & Maintenance
AirBNB Management Fee
TOTAL Ownership Expenses
$3,474
$200.55
N/A
$120.00
$268.20
$416.67
N/A
$4,479.42
Mortgage Payment*
Property Tax
Land Lease
Insurance
Utilities
Repairs & Maintenance
AirBNB Management Fee
TOTAL Ownership Expenses
$776
N/A
$500.00
$26.44
$100.00
$125
$0
$1,527.44
Mortgage Payment*
Property Tax
Land Lease
Insurance
Utilities
Repairs & Maintenance
AirBNB Management Fee
TOTAL Ownership Expenses
$1,962.00
N/A
$1,000.00
$52.88
$200.00
$250.00
$75.00
$4,479.42
Income
Rental Income
TOTAL INCOME
$8,334.00
N/A
$8,334.00
Income
Rental Income
TOTAL INCOME
$8,334.00
N/A
$8,334.00
Income
Rental Income**
TOTAL INCOME
$8,334.00
$2,500.03
$10,834.33
Monthly Cashflow left for Other Living expenses such as Groceries, Cellphone, Travel, Savings, Debt Repayment
$3,854.58
Monthly Cashflow left for Other Living expenses such as Groceries, Cellphone, Travel, Savings, Debt Repayment
$6,806.56
Monthly Cashflow left for Other Living expenses such as Groceries, Cellphone, Travel, Savings, Debt Repayment
$7,226.45
*Mortgage Rate is based on $50,000 deposit. Interest rate at 6% - 20 year amortization.
**Rental income is baed on renting a minimum of 26 weeks/year @ $1,,154.00/week. Stats from AIRDNA©