Canadian Real Estate 201

The bank of Canada holds its key interest rate yet again. This is a great summary of the announcement today by the BOC. https://www.firstnational.ca//bank-of-canada-holds-benchma

Because leasehold properties came up and it makes for a good topic I figured I would give a brief overview of the three common forms of ownership. But please ask if you have any questions Leasehold - you have a predetermined length of ownership - it can be prepaid (UBC, SFU, Government Land) or be payable for a defined amount usually yearly.... - Not as appealing to lenders/buyers as the other forms - Considered risky when there are less than 30 years left to the lease Freehold - you own the property - Most common form of ownership in Canada - Very appealing to lenders/buyers Stratified - you own your strata unit from the walls in and have shared ownership of any common area and from the walls outward - Typically comes with monthly strata fees to cover costs of the complex - Comes with responsibilities, liability, and maintenance costs - Extra due diligence should be done on the Strata when buying - Becoming increasingly popular with densification in cities

Mortgage Educational posts

An interesting property listing came across my desk today. As a rough estimate with 5% down the monthly expenses would be $1,710.00 a month

https://www.rew.ca//2937496/4230-salish-drive-vancouver-bc Why is this so cheap? 5% down is $32K with $2.5K monthly mortgage... Can I please get some analysis on why I should be pulling funds to go after this property?