Posted by: Karim Ali
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What does $1 Million Buy You in Ottawa?
Navigating the real estate landscape can be daunting, especially in sought-after areas like Ottawa. However, understanding what your money can fetch you in this vibrant city is the first step towards making an informed investment. Today, we’re spotlighting an enticing opportunity at 320 McLeod Street, where a lavish 2-storey penthouse condo, PH807, awaits discerning buyers. Notably, this property comes with the added perk of three owned parking spots, a rare find in the bustling city center.
The Financial Breakdown: A Closer Look at Costs and Requirements
Investing in a property priced at $1 million or above in Ottawa brings with it a specific set of financial implications. Here’s a detailed breakdown of the monthly expenses and the annual income necessary to comfortably afford such a luxury if you’re putting 20% down (that’s the minimum for any properties $1 million or above in Canada):
- Mortgage Payments: Expect to pay around $4,653 monthly. This calculation is based on a 5% interest rate spread over a 25-year term.
- Property Taxes: Monthly property taxes amount to $850.
- Insurance: Though initially estimated at $350 per month, a more realistic figure for insurance would likely be closer to $150. However, for the sake of conservatism, we’ll stick with the initial higher estimate.
- Utilities: Heating (gas) will set you back approximately $100 each month.
- Total Monthly Expenditure: When tallying up these costs, the total monthly spend comes to $7,712.
- Required Household Income: To manage these expenses, a household would need a pre-tax income of at least $289,000 per year.
Interestingly, if the purchase price were slightly under the million-dollar mark, at $999,000, the dynamics shift slightly. With a $75k down payment, the required household income for affordability rises to $309k annually, due to differing loan requirements for properties under the $1M threshold.
This exceptional property is brought to the market by team Nick Fundytus at Royal LePage Performance Realty, known for their expertise and dedication in serving Ottawa’s real estate needs. For those considering this investment, it’s a golden opportunity to own a piece of Ottawa’s skyline, complete with the luxury and convenience that comes with penthouse living.
Bonus tips
1
Investigate Diverse Financing Options: Consider adjustable-rate mortgages for shorter stays or jumbo loans for favorable terms on high-value properties. Consulting a mortgage broker can unveil unique financing opportunities tailored to your financial situation.
2
Maximize Property Utilization: Rent out unused parking spots for additional income. This approach can help offset costs and maximize your investment, but always ensure compliance with building regulations – it’ll likely have to be rented to other building residents.
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