The Surprising TRUTH About Toronto Condo Investing in 2023

People need to stop investing in housing. One house per family is enough! When you buy more houses you force families into the streets. I hope you guys realize this. What goes around comes around. Its Karma!

This is what all real estate agents sound like. They can always make a case that it's not only the best time to buy but also the best time to sell, lol. Never listen to someone who makes money on the transaction because the transaction is the only thing they care about and make money on.

If you're going to use such a simplistic equation that fails to consider all hard costs, why bother at all? Do back of the napkin but at least include condo fees, property tax, insurance and one time assessment risk as these only go up and never go down, unlike mortgage interest rates.

No condo worth investing according to this logic

All you greedy bastards looking to buy in edmonton and Calgary to ruin there market too. Little do you know its gonna go to shit there even worse than here. Get a real job and contribute to society

Your assuming that all renters psy their rent. More and more renters are not paying

Amazing content!🎉

Maintenance fee $600 × 12 plus property tax $150 x 12 plus mortgage interest $1500 × 12 should be added on top of purchase cost of $600K. I AM NOT BUYING FOR SURE

Thanks Zhen for posting this video.
The formula you shared is simple and easy enough to make quick comparison between different options.
But in Toronto, if we look at the average capital appreciation within the past ten years, I believe it will be higher than the yield. So, not taking this fact into account would be super conservative approach, and makes it extremely hard to come across properties that satisfy this formula.

A more professional calculation will subtract Condo Fees and Real Estate Taxes from Rents and use the 5 year mortgage rate.
Do not consider capital appreciation because on the long term it will lag inflation as the building gets older (buildings get run down or condo fees go up).

This is a good starting point, but it would be best to consider the potential capital appreciation as well