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| A map of the Greater Toronto Area with the City of Toronto and the four surrounding regional municipalities. (Photo credit: Wikipedia) |
According to recent statistics, the average price of the Canadian home is now a whopping $640 000.00 -- bordering if not surpassing on the unaffordable for the average family; yet the markets remain hot, hot, hot.
In the GTA, clients are often adamant on location, location, location - never considering what their dollar will get them if they peak outside the box for just a moment. Often, I've client's give me amazing wish lists, price ceiling and they finish their dreams with one word: Toronto, not considering the possibilities of a Mississauga home or any where else for that matter.
Let's compare. I've picked 2 properties in the same price category (under $640k) both a minimum 3 bedroom, with drive and both within 10 minutes of a Go Station (easy downtown access) and both within about 15 minutes of each other.
First Property:
Location: Alderwood, Toronto
Cost; $639 900.00
Type: Semi Detached, 2 Story
Bedrooms: 3
Bathrooms: 3
Basement: Finished
Drive: Private
Lot Size; 25 x 120
Taxes: $2942
Down payment:
$127 980.00 -- 20% to avoid CMHC Mtg Insurance OR
If you choose to only put down 5% the down payment in conjunction with new legislative requirements will be: $38 990.00 - which is 5% of the 1st $500 000.00 and 10% of the balance over $500 000.00
Second Property:
Location: Cooksville, Mississauga
Cost: $614 900.00
Type: Semi Detached, 2 Story
Bedrooms: 3 + 1
Bathrooms: 3
Basement: Finished with Kitchen and Separate Entrance
Drive; Private
Lot Size: 30 x 120
Taxes: $3636
Down payment:
$122 980.00 -- 20% to avoid CMHC Mtg Insurance OR
If you choose to only put down 5% the down payment in conjunction with new legislative requirements will be; $36 490.00 - which is 5 % of the 1st $500 000.00 and 10% of the balance over $500 000.00.
Estimated Closing Costs on Both Properties:
Toronto Home
Ontario Land Transfer Tax: $9273.00
Toronto Land Transfer Tax: $8523.00
Legal Fee's & Disbursements: $6000.00 (roughly)
Needed to close: $23 796 -- plus your Down Payment
Mississauga Home
Ontario Land Transfer Tax: $9353.00
Legal Fee's & Disbursements $6000.00 (roughly)
Needed to close: $15 353 -- plus your Down Payment
Is there a difference? The finances required to close a Toronto Property vs. a Mississauga Property is a cost differential of $8443.00. Does that make a difference to you? For most, $8443.00 is a lot of money and if you take into account that these properties are both within 10 minutes of a Go Train station and both within 15 minutes of each other, it can be a huge savings.
Yes location makes a difference, I absolutely agree. The wrong street, the wrong block, the wrong area -- all effect the value of a home but Apples to Apples, Buyers should always consider all of their options before they close their minds because one street, one block or one City abutting another, can result in a huge savings.
My goal, as a Realtor, is to get you the MOST amount of home for your money with as many, if not all aspects of your 'Wants' and 'Needs', certain conditions apply of course as I am not a magician, all I ask is that you open your mind to the possibility that in the GTA, having the word 'Toronto' in your home address, also comes with a price which can mean the difference between entering the market now or waiting even longer.
As always, I am here to serve.
If you have any questions, please feel free to contact me any time via email: nicole@gtalisted.com or phone/text: 416-388-7384 and I'll be happy to chat with you.
As of March 31, 2016 both of these properties remain actively on the market and I am available to show these properties to Prospective Buyers at any time. Please do not hesitate to contact me to schedule an appointment.
Nicole Kreutzberg
Realtor
Sutton West Realty Inc,
Email: nicole@gtalisted.com
Website; www.gtalisted.com
Phone; 416-388-7384
The information written on this blog is meant for explanatory and illustrative purposes only and are rough estimations not necessarily reflective of actual costs which are all subject to factors not necessarily reflected here. This Blog is also not meant to solicit Buyers or Persons already under contract.
