I brought my parents along with me to view one of the largest units (1872 sqft) in the development that was being highly recommended by my father’s friend and Mr. C. Long story short, it was love at first sight. For my parents. Especially my mother. They didn’t want to leave the place, and the way they talked about it on the way home was as if they were already living there. While I liked the condo well enough, it was too big for a rental, and it was out of my original budget.
You can read more about my other considerations here, but the gist of it is that I made an emotional decision at this point. My parents had worked hard all their lives and provided well for me. I decided that I couldn’t, in good conscience, deny them the condo apartment if it would make them that happy.
Once I decided that I was interested, I did my calculations. While it was outside of what I was originally intending to spend, it was still affordable. My monthly mortgage payment would shoot up to $3,100, and total cost after considering taxes and maintenance, around $3,700. Market rental for my unit was around $3,800 then, which means I could swing it, barely. But by capital gains metrics, this development had a lot of potential.
And so I went ahead and signed on the dotted line, after negotiating down the price by $50K to end up at a nice round $1.5 million. My downpayment was $300K and I also had to pay $34K in buyer stamp duties to the government. The day I had to hand over the cheque, I had to anaesthetize the area around my wallet first.
And so, that is the story of my first (and only) investment property in a nutshell. If you go to the ”Property” category, you can find more information on the condo littered around. While property ownership and landlording hasn’t exactly been a breeze this past 18 months, it has been a lot less work than I had originally anticipated, for which I can only be most grateful. And I have been lucky; the rewards have been pretty phenomenal.
Look out for the final part in the series – My Lessons Learnt