Great comment DMAC. The model shows what will happen if rates go up 1% and condo prices are flat. Rents paid are definitely factored in the model as are taxes. The investor is in a TFSA & RRSP which means capital gains are a non-issue. Property taxes cant be avoided though. Its a real advantage of investing in Canada to use the RRSP & TFSA vehicles.
You're right, mortgages can typically be locked in for five years.
But really people can check out the model and use their own assumptions:
Hey I'm Tim, the author, really glad people are into this. Interesting situation in Toronto. Check out the model and input your own assumptions if you'd like!
You're right, mortgages can typically be locked in for five years.
But really people can check out the model and use their own assumptions:
https://docs.google.com/spreadsheets/d/1ZJnbA2MO7iuQc4xEX9E2...