Acquisition & Closing Costs
$780,000
$0
$275,000
$300
1,800
$60,000
Construction cost (sq ft × $/sq ft)$0
$275,000
$1,400
No rental income and no build costs — this path is a pure bet that land value outruns the cost of carrying it. See the gotcha strip for how the CRA treats carrying costs on vacant land.
$2,200
Land transfer tax (Ontario) !$0
Total project cost$0
Financing
20%
4.89%
25 yrs
Finance the down payment too (HELOC / line of credit)
6.50%
10 yrs
Down payment$0
Mortgage principal$0
Combined monthly payment (P&I)$0
Cash you need on closing day$0
Rental Income
$3,400
4%
Fewer surprises, but rent is fixed — you don't capture a good month the way a nightly rental can.
0%
$220
≈ $1,540 for a 7-night week
55%
Higher revenue per night, but occupancy takes active pricing and turnover work to hold — the trade-off for a lower vacancy rate on the long-term side.
0
20%
$4,200
2.5%
Operating Costs
$6,800
$1,900
1.25%
≈ $9,750 / yr at today's value
$0
Long-term tenants usually pay their own utilities — set above $0 only if you're covering any.
$3,600
$0
Tax & Growth Assumptions
43%
Drives whether rental profit costs you tax, or a rental loss shields other income — watch the income statement move as you drag this.
3.0%
25 yrs
6.0%
6.0%
What the same capital could earn invested elsewhere — the comparison line in the wealth chart.
Capital gains inclusion rate (federal rule)50%
$6,000
Avoided vacation spending, credited against the carrying cost in the Breakeven Cost card below.