Do I look like I'm made of money?Well, actually, not so much…but I do see someone who is an astute investor and money manager, someone who gets the distinction between the carrying cost of a property and the purchase price, or total mortgage loan.
The purchase price of a home is largely determined by market forces – how many buyers versus the number of properties for sale, how quickly properties are selling and interest rates, for example. There are many variables, we have little control over them, and they affect us in an indirect way.
The carrying cost, however, is a number that means more to me as a buyer. It affects me daily and directly. Also, I have a much bigger say in how much I are willing and able to carry each month.
So, see the table illustrating the mortgage carrying cost per month.
Suppose I’ve found my dream home. The difference between having it, and not, meant an extra $10,000 on my offer. That translates to $55.30 a month, or $1.84 a day. The question to myself, then, becomes: is this property worth an extra $1.84 daily?
Look at the numbers! The possibilities are startling.
Stay cool and stay tuned
Lindsay@TorontoRealEstateToday.com
(416) 809-6245
