Friday, November 27, 2009

Buy Five and get 3 for FREE

If only that concept worked with Real Estate Investments in Toronto.

The property captioned on the video is a 10 unit residential and commercial mixed use property in close proximity to the (new and improved TTC ) Kipling Subway station. Superb commercial location for a few small stores and or business' that want extra eye's on their sign.

The property if compared to a row attached townhouse with condo fees of the same size would be selling for approximately $600.0 thousand. Three have a wooden patio deck back yard, Two have a rooftop Terrace. (Times 5 Units) . In addition there are 3 completely legal and NEW basement apartments that are one and two bedroom units. PLUS the two commercial units on the Bloor Street facade.

Buy Five you get three for free. Plus the additional cost of the two commercial units, places this Building at a replacement cost of $3.5 Million as the asking price.

So here we are; The Investment Handbook says that good invest is a building that has a CAP Rate of 6 0r 6.5% The Good Book never explained Interest Rates at the 2.5% annual APR or the Landlord Tenant Tribunal with rent limitation annually of 1.2%

The Good Book is also mute on Toronto Land Transfer Tax and GST.

Builders need to build and be permitted to market their finished products. Landlords need to be able to buy renovated or new product for rental purposes that meet market rents.

Do you have a spare million floating around that could earn EBIT 180.0K then give me a call. With a 1.0MM investment the return on investment is 18% or you could keep pushing money into the mattress and hope the kids don't throw it in the landfill. OH, That happened Right?
Scroll Down for Financial Proforma

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