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Project Description

Vail Meadows Cres., Bowmanville

Purchase Date:  November 15, 2011

Local attributes:  The townhouse is centrally located in a family-friendly neighbourhood, close to 2 elementary schools and all other amenities (shopping, recreation centres).  The unit is about 500m away from the future site of a commuter train station.

The Numbers:

  • Purchase price: $185,000 (2015 appraised value: $300,000)
  • Down Payment:  $37,000
  • Mortgage:  3.04%, 25 year Amortization
  • Rental Rate:  $1450 plus Utilities per month
  • Property Taxes:  $224.81 per month
  • Equity Build:  $359.84 per month
  • Cash Flow:  $256.75 per month (after deducting 5% Vacancy & Repair Allowances)
  • Additional costs:  Property Inspection: $400, Land Transfer Tax: $1500, Lawyer Fee: $1200, Paint and Flooring: $11,000

Rental Date:  Our Property Manager posted the unit on December 1 and we signed a lease with a tenant on December 8.  They took possession on December 30, 2011.

What went right:

  • We hired a contractor to do most of the work.  This was much more expensive, but the whole process was much less stressful and we were able to have the house ready for tenants a month earlier than anticipated.
  • I found the whole purchasing process very easy this time.  I was able to do much of the transaction electronically, with very little time required for office visits (e.g. lawyer or Real Estate agent).

What would we have done different?:

  • Added an extra $10,000 to the mortgage to be used as a renovation fund instead of using our LOC.  We now have extra debt to be paid back before we purchase our next property.
  • Supervise the painting contractor more closely.  The quality of their work was poor, and I should have inspected more frequently instead of waiting until they were done (or when they thought they were done).  I held payment until they fixed most of the deficiencies, but it put us behind on other upgrades because they were in the house for additional days.  Overall, I am still not happy with the quality of their work, but that’s what I get for going with the lowest bidder.  I’ll know better next time.

Project Details

  • Date January 7, 2013
  • Tags Bowmanville, Townhouse

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