|Your Expert Team|
Michelle and Laurie Appleton
Award Winning REALTOR®
For All Your Real Estate Needs
For Houses, Condos, Townhouses,
or Revenue Property
Area Specialists in Greater Victoria
Why buy a house or condo for your landlord? - and end up with nothing - when you could buy a mobile home - your very own small house - and end up owning a very substantial asset. |
The rent you pay today could be your mortgage payment - towards owning your own small house - tomorrow.
IF YOUR MONTHLY RENT IS
THE SAME AMOUNT MONTHLY WOULD FUND A MORTGAGE OF
This example is based upon an interest rate of 5% - amortized over 25 years, and including an average pad rental of $300.00 per month.
There are no additional taxes on the purchase price of a mobile home; no HST, nor any other purchase tax. And since it is leased land, you do not pay taxes on the land. You do however pay a small annual provincial property tax on the house only, which on an average house is approximately $450 per year (after your government grant, on your personal residence only). For people over the age of 65, you only pay $200 per year. And closing costs for a sale are around $1,000.00 - for lawyer, house insurance and adjustments.
The bank will allow 32% of your gross income to go towards your monthly house payments and your debt ratio cannot exceed 40% of your monthly income.
Yearly gross income = $36.000
Monthly gross income = $3.000
40% of $3.000 = $1.200
32% of $3.000 = $960
In the above example you can afford to pay $960.00 per month for your home, which consists of your mortgage, pad rent, home insurance and heating costs. You will qualify for an approximate $105.000 mortgage.
Financing it all: You can purchase your home with a minimum of a 5% down payment. With a small down payment the mortgage will require to have CMHC insurance. Qualifications needed to show the bank are the last 2 years of your T4 slips. If you have less than 1 year at your present job, you will need either a co-signer or a guarantor, sometimes both - depending upon your situation.
The maximum mortgage amount which the lender will allow you to take is determined by the maximum sum you are able to pay each month.
The money you pay for rent is gone forever and you will have absolutely nothing to show for it. This money could pay for your own mobile home - your very own small house - which will eventually amount to a very substantial asset.
Contact: Michelle Appleton
Phone: Cell # (1) 250 - 686 - 0477
Pemberton Holmes Ltd. - #150 - 805 Cloverdale Avenue, Victoria BC, V8X 2S9
Phone # (1) 250 - 384 - 8124 / Toll free # 1 - 800 - 665 - 5303