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Income Statement of a 1 Bed at Line 5 Condos at Yonge & Eglinton

By CondoWong Friday Jaunary 11, 2019

Following the successful launch of North Tower in October 2018, Line 5 Condos at Yonge and Eglinton by Reserve Properties and Westdale Properties will be launching the South Tower next Thursday January 17, 2019.

Let’s see what it takes to get started on a 1-bedroom investment at the Line 5 Condos. A 1-bedroom unit of size approximately 500 square feet will be starting at around $550,000 and a 20% deposit will be required by the developer. This means that you will need a saving of $110,000 in order to start this investment. While the condo is being built over the next 4 years, you will have to save another 15%, $82,500, for extra down payment and another 5%, $27,500, for closing costs. The total cash required will be $220,000, with $110,000 paid within the first 1.5 years of purchase and $110,000 at final closing 4 years later.

The total down payment you have made with the above number is 35% of the purchase price; hence, you are looking at a 65% mortgage. The projected rent in 2023 for a brand new 1-bedroom unit in the area will be $2,500.

Monthly Income Statement

Item Income Expense
Rent $2,500
Mortgage Payment
Interest Rate: 4%
Amortization Years: 25
Condo Fee
Maintenance Fee: $0.60 per Sq.Ft.
Suite Size: 500 Sq.Ft.
Rental Management $90
Insurance $20
Property Tax: 0.64% of Assessment Value $291.27
TOTAL $2,500 $2,588.29

Cash Flow = -$88.29

As you can see, you need to be prepared to invest around $100 per month in order to keep this rental business running. Don’t forget that your mortgage principal is being paid and this is how you get a monthly paycheck even when you’re retired.

Why Choose Line 5 Condos as a Rental Investment?

The Line 5 towers are situated on 117 Broadway Ave, within a 10-minute walk to the big intersection of Yonge & Eglinton, which will also be the intersection of the Yonge subway line and the Line 5 LRT (hence, the name Line 5 Condos). Set to open in 2021, the 19-kilometre LRT will whisk riders across the city from Kennedy Station in the east to Mount Dennis in the west.

“The impact the new LRT will have on Yonge and Eglinton is hard for people to conceptualize,” says Shane Fenton, Chief Operating Officer, Reserve Properties. “It’s not hyperbole to say this is going to drastically change Toronto. With rapid transit in every direction, Yonge and Eglinton will emerge as the new centre of the city.”

Toronto does not have a new railway very often and when it does, the impact is big. Since the Sheppard subway line opened in 2002, it has been bringing in a lot of real estate opportunities along the subway line. We continue to see constructions and new communities evolving along the subway line today.

The new LRT will have an even bigger impact than the Sheppard subway as it will be meet the Yonge subway at the major Yonge and Eglinton intersection in the heart of mid-town Toronto. The real estate opportunities that this transit hub is bringing to mid-town will be enormous.

Line 5 Investment Package

If you’re interested in getting the brochure, floor plans and price lists for the Line 5 Condos, please register here.