You are the minority. Reada recent survey that said majority of people couldnt comeup with 3k lol
I wonder how long this insanity will last....
- Thread starter mimico_polak
- Start date
You are the minority. Reada recent survey that said majority of people couldnt comeup with 3k lol
The Star was running an article about how the parents of kids are buying the houses for them or giving them giant down payments. I believe it.
Then there are all the foreigners with their vast wealth buying at the ask price, sometimes sight unseen.
Renting isn't really an answer either. It can be but also not. Why? Because on my mortgage that I'm overextended on, at least when I sell I'll get my principal payments back. Renters get **** all except what they say they saved in the difference.
It sucks. Yes it is cheaper to live outside Toronto. You also pay more in tax ($6000 a year in Brooklin, Whitby where partner's parents live) and more to commute. Go just raised fares 35-55 cents a ride beginning Feb so that's an extra $300 a year for people commuting from the end of the line. Last year was also a fare increase. My pay increase for the coming year as of Jan 1 is $200. So techically I am now $100.00 poorer at the end of next year. You get the picture. It sucks.
Then there are all the foreigners with their vast wealth buying at the ask price, sometimes sight unseen.
Renting isn't really an answer either. It can be but also not. Why? Because on my mortgage that I'm overextended on, at least when I sell I'll get my principal payments back. Renters get **** all except what they say they saved in the difference.
It sucks. Yes it is cheaper to live outside Toronto. You also pay more in tax ($6000 a year in Brooklin, Whitby where partner's parents live) and more to commute. Go just raised fares 35-55 cents a ride beginning Feb so that's an extra $300 a year for people commuting from the end of the line. Last year was also a fare increase. My pay increase for the coming year as of Jan 1 is $200. So techically I am now $100.00 poorer at the end of next year. You get the picture. It sucks.
Why do we allow real estate to be sold to non-residents? Other countries don't allow it or force them to pay a significantly higher tax rate to offset the privilege.
Why can't we do that? Why can't we raise the taxes for all those non-resident speculators? Ok with me if they pull out and crash the market. That's what I want for everyone. Affordability.
Why can't we do that? Why can't we raise the taxes for all those non-resident speculators? Ok with me if they pull out and crash the market. That's what I want for everyone. Affordability.
Ahhh the good old "rent is a waste of money argument", i knew this was going to come up sooner or later.
Lets break it down, 2995 monthly mortgage payment, of which btw 30% is interest, or 900 dollars roughly.
Add in property tax of 350 a month and other bills which on the conservative side will be another 350 (hydro etc) we'll leave maintenance out of it just to make it easy.
So right there you wasted 1,600 a month in money you will never see again. For the exact same price you can rent a 2 bedroom plus den condo at square one, with everything included.
Take the initial down payment, invest it and throw in the difference into the bank every month of what you'd be paying towards the house.
At the end of it who do you think will be better off? I can run the math for you, but there are several ways this can go and there are a lot of variables that all have to line up in your favor, like interest rates, inflation, will homes go up or will they finally take a **** at some point in the next 25 years? You still got a couple of furnaces, acs, roofs, and other things to get for your house over the next 25 years. None of these things are cheap.
BTW in order for you to break even on a 600,000 house in my scenario your house will need to be worth somewhere in the 1,800,000 - 2,000,000 range in 25 years.
Given 3% inflation ofcourse.
Considering all of the above, if everything works out you might be able to break even or be a bit ahead of the game. However, if things go south, it aint gonna be pretty.
So is sinking 25 years of your money, well actually borrowed money, into one thing the best idea?
70% + of canadians own a home, the highest in canadian history.
You know what's also the highest in canadian history? Debt
No argument there, but at these prices there isn't much that you'll be able to do with you time anyways lol
Agree 100% with everything Paul said.
From what i've seen, the most popular way to get a house, is to get married, rake in all that gift cash, plus some help from the parents.
My Dad's house cost $21,000 when it was new in the early 70's, today it's worth approx 15 times as much, and it's the exact same house, only worn down like an old boot now. You could bulldoze the place and get the same selling price.
The salary he made is higher than many people make today. everything got more expensive, but the pay cheques certainly didn't climb at the same rate as the cost of living.
As i said in other posts, we can blame several things, but greed is at the root of it all.
Banks, real estate people, crooked condo builders, bribe taking city officials, the list goes on...
Any company that makes billions with a B, is usually ripping us off.
From what i've seen, the most popular way to get a house, is to get married, rake in all that gift cash, plus some help from the parents.
My Dad's house cost $21,000 when it was new in the early 70's, today it's worth approx 15 times as much, and it's the exact same house, only worn down like an old boot now. You could bulldoze the place and get the same selling price.
The salary he made is higher than many people make today. everything got more expensive, but the pay cheques certainly didn't climb at the same rate as the cost of living.
As i said in other posts, we can blame several things, but greed is at the root of it all.
Banks, real estate people, crooked condo builders, bribe taking city officials, the list goes on...
Any company that makes billions with a B, is usually ripping us off.
With average TO prices and average TO wages.........it must be a powerful magnet that keeps people where they're from. Many people cross oceans for a better life. Would it be so difficult to drive down the hiway a bit for a better life?
Must be something in the water in the gta. Look at windsor, average home price of under 170k, and they make more than people in the gta! hahah
Average home price in the gta? last i heard it was 800K+
Looks like our mayor isn't the only one smoking crack
Youre correct. I am the one that's at fault that I don't have the money all saved up for a house. However I made some wrong decisions financially where I wish I hadn't done them. Bought the Genesis at 30 years old. But I loved that car and enjoyed myself each time I got behind the wheel. Then I traded it in for a new wagon. Worked out great because the payments went down by 100/month and went to zero percent financing on a shorter term loan. I also got it for the same price as I owed on the genesis so all I did was transfer over to a newer car on a shorter term with a lower interest rate.
the bikes....well those were toys and I also enjoy myself very well each time I get on them and I sold off all my other hobby gear so the net $ was very small.
And now that I'm married I'm looking at finances differently and more long term. I've got about 40k lying around in banks so I'm not in a horrible state but I refuse to go out and throw every cent I have into a home just to say 'look everyone I have a home' I'd rather be in this small place where I am but be comfortable.
as for my living conditions I spent 30k a few years ago to co-purchase a rental property with some help and am living there in one of the units so my rent is very low for where I am. I was looking for a primary residence hence the bank wants 20% and wouldn't accept 5%. I was very fortunate with this place and I don't regret putting the $ in at that time.
i also worked 3 jobs to out myself through school and graduated with zero debt. Always paid away loans as fast as I could and never had a large debt. The Genesis was a treat and I don't regret it, the bikes, or anything else that I enjoyed doing.
My my one and only regret is I never focused on investing and mutual funds and rrsp etc. my family and culture do not do this and it's never been ingrained in me. I will be looking to start soon but need to line up a new job first.
What a large amount of people are doing is when they retire they sell their house in Toronto and move outside the gta for a third of the price. That house in Toronto is a pension fund for some. With the disappearance of defined pension funds this has gained popularity the last decade.
Yup. The retiree a few doors down from me is an aerospace engineer that lived in the High Park area in TO. In my case I couldn't live there to begin with. Obviously he and his generation bought stuff much cheaper decades ago. You could buy a house in little Italy for 30k in the 1970s because nobody wanted to live there.
Kinda contradicts this survey, no? http://www.cbc.ca/news/business/canadian-boomers-want-to-stay-in-their-homes-as-they-age-1.2224171
"About 91 per cent said they want to stay in their home or in their neighbourhood and live independently as long as possible."
I want to be in a house badly - apartment living sucks for me because I want workshop/garage space and a real backyard - but since my wife can't work, I'm pretty well figuring this is the only I'm going to be living in a house. Even then, I need to be making a lot more. 50k/year would cut it if there were two of us making that, but not solo.
Yes but you gotta live in Windsor...
My first two condos I could buy cheaper than I could rent. So I did. When hubby and I bought the house we did 25% down and went aggressive on the mortgage. It's been 8 years and I won't have to reapply for another. This is what has worked for us.
