What condo could Michael Babcock buy in Toronto?

The new head coach for the Toronto Maple Leafs, Michael Babcock, is looking for a condo. You don’t say.

At a $6.25 million salary per year (it’s a $50 million, eight year contract) it’s interesting to see what he might opt for…so interesting, I decided to poke around myself.

But first: some assumptions.

Assumption #1: Mr. Babcock is a conservative home owner, who won’t spend more than 32% on his house-related expenses each month (this it the Gross Debt Service ratio that’s used by lenders to ascertain whether or not you qualify for a mortgage).

For Mr. Babcock that means limiting his household expenses to $160,000 per month. Ouch.

Assumption #2: Mr. Babcock will wisely put 20% down on his home—enough to avoid fees, but not too much so that money is tied up in Toronto real estate.

Assumption #3: For the sake of calculations, we’ll use a 25 year amortized mortgage and a five-year 3% fixed interest rate.

Assumption #4: Mr. Babcock won’t want to spend time commuting, so a condo within walking distance of the Air Canada Centre is probably best.

Based on these assumptions, here are his best options (based on what’s actually available for sale to the public right now):

1) Penthouse #2, 64th Floor at 180 University Ave: Located at University and Adelaide the building is only a 15 minute walk to the ACC. And for only a little more than $18.8 million, Mike will get more than 6,700 square feet, with 4 bedrooms and 5 bathrooms. But wait. There’s more. The steep pricetag on this urban southwest facing oasis includes 11-foot high ceilings, a private internal elevator, a 2,900 square foot terrace, a floor to ceiling glass curtain wall for ultimate city views from this two-level suite, plus a three car garage. Oh, and every bedroom has an ensuite.

Mike also has access to a concierge, gym, indoor pool, sauna and visitor parking. But wait, there’s more. The unit also gives him access to the Shangri-La 24-hour, 5-star services that includes spa treatments and hotel-like service.

For this lovely unit, the math breaks down like this:

–> Just under $3.8 million for a 20% down payment
–> $747,000 one-time land transfer tax payment (includes both provincial and city tax)
–> $19,203 in annual property tax payments ($1600 per month)
–> $71,509 per month on mortgage payments
–> $5,021.25 per month on monthly maintenance payments

= Mr. Babcock will have to fork out $4.5 million in one time costs (not including closing fees, such as legal and moving costs)

= Estimating his monthly utility bills at $3,000, Mr. Babcock will pay $78,130 per month on housing. Still under 50% of his maximum monthly budget.

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2) Penthouse 1, 10th Floor, 500 Wellington Street: Located at Wellington St. West and Portland, this is a slightly smaller unit at only 6,2oo square feet. Still, for a list price of $7.9 million the three bedroom and three bathroom unit offers two private elevators, two underground parking spots, a wood burning fireplace, 10-foot high ceilings, a 2,000 square foot terrace with raised glass pool and hot tub and a private outdoor kitchen.

Unfortunately for Mike there is no gym in the building, although there is building security.

For this lovely unit, the math breaks down like this:

–> Just under $1.6 million for a 20% down payment
–> $308,200 one-time land transfer tax payment (includes both provincial and city tax)
–> $8,032 in annual property tax payments ($670 per month)
–> $29,909 per month on mortgage payments
–> $2,444.29 per month on monthly maintenance payments

= Mr. Babcock will have to fork out $1.9 million in one time costs (not including closing fees, such as legal and moving costs)

= Estimating his monthly utility bills at $3,000, Mr. Babcock will pay just under $36,025 per month on housing. Way under his maximum monthly budget of $160,000.

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3) Unit 4603, 33 Charles St. East: Located right at Yonge and Bloor, this two-storey condo would require Mike to walk a bit further or take the subway (ridiculous, but an amusing thought). Even smaller than the other two options, this 3,500+ of living space will give Mike three bedrooms and three bathrooms along with a 786 square foot terrace with private hot tub. The unit boasts modern clean lines, two parking spots and offers 10 foot high ceilings.

There is a gym in the building, along with guest suites, an outdoor pool, sauna and visitor parking.

For this lovely unit, the math breaks down like this:

–> Just under $540,000 for a 20% down payment
–> $100,160 one-time land transfer tax payment (includes both provincial and city tax)
–> $2,744 in annual property tax payments ($229 per month)
–> $10,218 per month on mortgage payments
–> $1,472.18 9 per month on monthly maintenance payments

= Mr. Babcock will have to pay $640,160 in one time costs (not including closing fees, such as legal and moving costs)

= Estimating his monthly utility bills at $3,000, Mr. Babcock will pay just under $15,000 per month on housing. But he’ll have to budget an extra $130 or so for a TTC metropass.
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