suzuki2000
Well-known member
your point is bang on, but the numbers for utilities are really low, at least to what it costs in my neck of the woods.. and the property tax rate is about half of what it is in my area.
I wonder how long this insanity will last....
- Thread starter mimico_polak
- Start date
your point is bang on, but the numbers for utilities are really low, at least to what it costs in my neck of the woods.. and the property tax rate is about half of what it is in my area.
Fully agree! It's like people only look at the mortgage and then BAM nothing else really matters in the end. Basically what my wife and I are doing right now, is we're putting away MONTHLY what the costs of a mortgage are and seeing how we come out at the end following all of our other expenses as well.
Frankly it's not too fun! LoL But...the savings are growing very fast which is a nice touch. We've got a small apartment which we both enjoy, the formula I'm using (very simple) is as follows:
Monthly Deposit into Savings = Assumed Mortgage Payment (X) - Current Rental Payment (Y)
This gives me a good idea of what it would be like living our lifestyle, while putting money away monthly to cover the mortgage. The rent payment gets rolled into the mortgage so all I'm worried about is the difference + hydro. It's not too bad...but it's not a lavish lifestyle at all. And this is with one car only!
If we need 2 cars, well then that's at least another 500/month (car payment + insurance).
? I don't know the property tax rats for different areas... but where in Ontario has double the rate of other places?
The common rule is that your take your income times it by three and that should be your house. Plenty of people in GTA make 100k each. The average salary for household in GTA is 70K. The median income is also 70K, so half the households make more than that. Is everyone rich? No, so the inverse of that it also true so not everyone is poor. As someone else said here, we do have a much stricter lending policy to make sure that people are not getting over their head, doesn't mean it doesn't happen.
rbjeepthing
Well-known member
Well I'm in Innisfil and my property tax is $1500 a year for a lot 150'/300' with a 3200 sq/ft home. So way less then half of what Paul1000RR quoted at $4200. This is also with a recent assessment by Mpac. There are reasons for this and it comes down to infrastructure which is obviously less out in the country. If you want to live in the city with city conveniences you are going to pay for it.
I thought that was a good rule of thumb too but banks are willing to extend more than that in TO, if you have the deposit. Fiancee and I were pre-approved for a bit over 4 times our combined incomes earlier this year.
It is madness. Borrowing the max woulda made us incredibly house poor, and we don't even own a car.
He is asking about tax rates. In Toronto they are around 0.8%, in places like Pickering and Oshawa they are about 1.5% of the house value. That is why in Toronto a person with a house at 600k is paying the same tax as a person outside the city with a house worth 300K
Thank you. I didn't know they varied that much....
That was a calculation of a house valued at 500k in toronto. Brampton is even higher as is mississauga. Toronto has pretty much the lowest property tax rate in the gta, however double the land transfer tax
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I made them low so that people wouldn't complain that i put it too high just to try and exaggerate my point
For the sake of comparing apples to apples, what do you suppose the average income is just in the GTA?
I'd assume it was higher than the national average but how much higher? Any idea? Regardles... YIKES!
Yeah except the people who make 100K a year aren't buying cheap (by toronto standards) houses. Now they need a house thats a million
According to this median total income is 69k in the gta
http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/famil107a-eng.htm
how much you pay a month for your apartment if you dont mind me asking?
Excellent! Ok so that is before tax, what would that result in as take-home?
And for a two income home what percentage of take home goes directly to housing?
Well that depends on who makes what, 1 person working or 2 etc. But i think its safe to subtract 15K for taxes, that leaves you with 54k. 44,900 of it going to the house or 83% of income... :lmao:
Leaving you with 750 a month for transportation, clothing, food etc..
Kraft dinner anyone? :lmao:
daught
Well-known member
And two X6s on the driveway. In the end, in a way it blows to be financially responsible. When everything comes crashing down you still get shafted. Not as bad, but no one's safe.
the 69k isnt one person. it is the median family income.
average income per person is around 39k per person in canada
Why does it blow to be financially responsible?
You don't have to buy these ridiculous houses or cars. You can live in a nice apartment or rent a condo for a decent price. There are plenty of "investors" who will eat up part of your rent just to make the payments on their "investment".
At the end of the day you're way ahead by renting today then if you buy a house for 600K+.
