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%
–
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%
–
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%
–
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)
