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Buying Calgary Condos Show A 282% Return On Investment

Posted by admin on April 20, 2012
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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 
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 Return12.13%
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 Equity192%
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%

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