The holiday season is upon us and budgets are tightening up - everyone is looking for the best deals or the hottest sales of the year, and if you're in the market for a new condo, condominium developer Mastercraft Starwood is offering a pretty special and unique promotion to help those that may not have a large ammount of money save for a deposit, something that most new home builders require. For as little as $5,000 as an initial deposit, you can purchase a brand new luxury condo at their downtown location, SoHo Lisgar. Here's how it works:
Once you have decided on one of the 13 remaining suites (there are 1 bedroom, 1 bedroom + den, & 2 bedroom condos still available) all you need as a minimum deposit is $5,000 - the regular deposit is 15% due over 90 days. After 1 year you will need to put down the balance of a 5% deposit combined with evidence of a mortgage that covers the remaining 95% of the purchase price. During that year you will lease the condo from the builder for 1 year at market rent - starting at $1,560/month for 1 bedrooms and $2,150/month for 2 bedrooms. But here's the catch, half of your rent will be credited towards the balance of the 5% deposit owed. So effectively, you would be renting a downtown 1 bedroom condo at $780/month or 2 bedroom at $1,075/month!
Let me demonstrate this promotion is greater detail. For this example I'm going to use SoHo Lisgar's 'D1' plan - a 922 sq. ft. 2 bedroom/2 bathroom condo (you can view the floor plan here). The purchase price on this particular suite starts at $437,900 (incl. HST), and as I mentioned above, the monthly rent would be $2,150.
Price.......................................................................................$437,900
5% Deposit...............................................................................$21,895 ($437,900 x 5%)
Monthly Rent..............................................................................$2,150
Initial Deposit..............................................................................$5,000
Remaining Balance of 5% Deposit.............................................$16,895 ($21,895 - $5,000)
Total Rent Paid After 1 Year............................................$25,800 ($2,150 x 12)
Credit Towards 5% Deposit.............................................$12,900 ($25,800/2)
Remaining Balance of 5% Deposit Due After 1 Year....................$3,995 ($16,895 - $12,900)
Now let's say you are a buyer who's intrigued by this promotion, but that four-letter word scares you: RENT. Even if half of it is being credited towards your purchase, you still can't stomach handing over a monthly rent cheque. I can relate, I was raised to believe that renting (a.k.a. paying someone else's mortgage) should be avoided if at all possible. So, what do you do? Is this promotion a waste? Hardly.
The first condo I ever lived in was a 2 bedroom/2 bathroom condo approximately 1,000 sq. ft. I wasn't into paying a lot of rent, but I needed a roof over my head, so I rented out a room for $900/month, approximately cutting my rent in half (Sound familiar??). The $900/month I wasn't paying in rent I put away in a savings account that I ultimately used to help fund my next real estate purchase - which is essentially what SoHo is doing with this new promotion. But let's run the numbers again with this additional income coming in from "Roommate Rent", and since this two bedroom condo at SoHo is slightly smaller than the one I rented, let's lower the "Roommate Rent" to $800/month. I know what you're thinking '$800/month can't possibly change the outcome that much, can it?' I'll let you be the judge.
Price.......................................................................................$437,900
5% Deposit...............................................................................$21,895 ($437,900 x 5%)
Monthly Rent..............................................................................$2,150
Initial Deposit..............................................................................$5,000
Remaining Balance of 5% Deposit.............................................$16,895 ($21,895 - $5,000)
Total Rent Paid After 1 Year............................................$25,800 ($2,150 x 12)
Credit Towards 5% Deposit.............................................$12,900 ($25,800/2)
Total "Roommate Rent" After 1 Year..............................$9,600 ($800 x 12)
Remaining Balance of 5% Deposit Due After 1 Year..................-$5,605 ($16,895 - ($12,900+$9,600))
You read that correctly, between this new promotion and by adding a roommate into the mix, you won't have to pay the remaining balance out of your own pocket. In fact, you will have a little over $5,000 extra that you can use to increase your deposit (if you're prudent with your money) or maybe take a very nice Caribbean vacation for 2 (if you're less prudent). Plus, in a condominium building like SoHo Lisgar, you will experience other savings as well: no more monthly gym fee (SoHo Lisgar has a professional Dalton Brown gym, complete with all the exercising essentials - NOT your typical condo gym), cut down on your entertainment costs (host your own movie nights in the 24-seat private theatre) and trim back on your relaxation or spa budget (as part of the 7,000+ sq. ft. of hotel-inspired amenities, you will have access to the exterior lap pool, hot tub and indoor sauna).
For more details on this promotion or to learn more about the SoHo products, don't hesitate to send me an email.
Thanks for reading.
Taylor Bennett
Sales Representative - Bennett Property Shop Realty
www.BennettPros.com
Taylor@BennettPros.com
@OttawaTails
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