If you are thinking of investing in Calgary’s condos market now might be the right time to do so . 2012 is turning out to be a great year in the residential real estate market. The energy sector is booming and the future of Alberta is looking very bright. With low interest rates and favourable condo prices Calgary’s condo market is once again a prime place to invest for long term plays. H8JUSNHFSGNT
6th AND Tenth is a new high rise project being offered by Brad J. Lamb Realty Inc. out of Toronto. Brad’s development company Lamb Development Corp. has built numerous luxury towers in Toronto, Montreal and Ottawa. 6th AND Tenth is a new residential tower that will be their first offering in the Calgary market and features world class designs and views in the belt line area of Calgary.
Lamb Development Corp. has some great architects behind them that in my opinion build some of the most atractive designs in the world. 6th AND Tenth will be no exception and will be a welcome addition to Calagary’s condo market
Calgary Rental Condos Show Return On Cash Flow With A 282% Return On Investment | |
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One Bedroom Unit @ 6th AND TENTH | $230,000 |
Down Payment (25%) | $57,500 |
Mortgage (75% @ 3.5% – 25 year amortization) | $ 861.24 (Priciple + interest) |
Estimated condo fees (monthly) | $185.00 |
Estimated taxes (monthly) | $185.00 |
Total monthly cost | $1,236.24 |
Estimated market rent | $1,450 |
Monthly positive cash flow | $213.76 |
Annual positive cash flow | $2,565.12 |
Mortgage principle paid year 1 | $4,410.74 |
Total Annual Cash Flow | $6,975.86 |
Rate Of Return | 12.13% |
Rental Condos Provide Large Capital Gains | |
One Bedroom Unit @ 6th AND TENTH | $230,000 |
Value after 4% annual appreciation for 10 years (Calgar’s 10 year average is 6%) | $340,400 |
Capital Gain | $110,400 |
Return ON Equity | 192% |
Additional Returns Due To Mortgage Payments | |
After 10 years, you have paid off $51,817.43 on the mortgage! | |
TOTAL CASH GAIN OVER 10 YEARS Capital Gain + Debt Repayment | $110,400 + $51,817.43 = $162.217.43 |
TOTAL RETURN ON EQUITY | $282% |