Would you rather get into the market at a lower price point and make your downpayment go further than to keep renting and paying someone else’s mortgage???
You know I’m gonna do the math here …. It’s the finance brain that I work with!
Buy at $499,999 (take advantage of the First Time Buyer’s Exemption on Land Transfer Tax = $7999.98 in savings) put 10% ($50K) down
Mortgage Payment is $1897/mo P+I assuming a current rate of 1.69% (rate as at 02/20/21)
Mortgage is $463,950 net total
(** with high ratio default ins premium)
Let’s say that property appreciates in value even a modest 10% in the next 5 years so now you can sell for $550,000 and your mortgage has been paid down for 5 years, the balance at the end of the term would be $386,085
$550,000 – $386.085 = $163,915 Equity
The rates are very low currently. Low rate, coupled with more of your payment going toward principal with low rates = amazing return on your investment!!!
Almost $78K went to principal during this 5 year period. That is awesome! Even 1% higher and you would see a lot more go interest.
Let’s #dothemath together ➕➖
I think even a $50,000 investment can have a lot of promise for your family at this time …