This blog post is talking about INVESTING NOT BUYING
Real Estate: (2 wheels turning - rental return / principal return)
20.5% down
$488,000 – cheapest east van condo worth buying
#101 – 2272 Dundas Street (The Nicolyn)
– Dundas St & Garden Drive
- East Van 567 SqFt 1 B / 1 B / 1 P / 317 SqFt Patio / updates / 2 cats or 1 dog
1990 building - Rainscreened / Re-Plumbed / Re-Roofed – membrane ?
RENT - $2,550
APROX Purchase $480,000
- $2,545.34 - mortgage ($380k) 2yr fixed 6.5%
- $280.95 - strata fee
- $126.43 – property tax
- $50.00 – maintenance
- $100.00 - insurance
= $3,102.72 (-$552.72/mo)
That’s called a negatively cash flowing asset.
IS IT AN ASSEET IF ITS CASHFLOWING NEGATIVELY?? NO ITS NOT!!
Go read rich dad poor dad… the bank is not your friend, Robert kyosaki is!
Average 5yr East Van Condo growth 16.5% (3.3%/yr) RBGV
CASH = - $6,632.64
PRINCIPAL = $103,300.00 – market growth (3.3%)
TOTAL = $96,667.36 (-$3,332.64) -3.33%
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Stock: (2 wheels turning - dividend return / principal return)
$25k / 4 stocks
RBC $121.22 (206 shares @ 4.45%) = $1,112.50
TELUS $23.04 (1,085 @ 6.31%) = $1,577.50
Enbridge $46.29 (540 @ 7.67%) = $1,917.50
Dream Industrial $13.53 (1,847 @ 5.12%) = $1,280.00
- $39.96 purchase fee x4
= $5,847.54 ($487.29/mo) av 5.88% div
10yr return for these stocks Collective +79.4% (7.94%/yr)
CASH = +$5,847.54 – div growth
PRINCIPAL = $107,940 – market growth (7.94%)
TOTAL = $113,787.54 (+$13,787.54) +13.78%
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Fixed Income: (2 wheels turning - guarantee return / SAFE principal return)
Tangerine5.95% GIC / 1yr
CASH = +$5,950
PRINCIPAL = $100,000 (same)
TOTAL: $105,950.00 (+$5,950.00) +5.95%
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10 YEAR EXAMPLE
10yr trend – bull markets
Property – 122.4% (east van condos)Real Estate: (2 wheels turning - rental return / principal return)
Stock Market – 79.4% (these stocks)Stock: (2 wheels turning - dividend return / principal return)
GIC – 4.25%Fixed Income: (2 wheels turning - guarantee return / SAFE principal return)