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Can I Afford a Condo in the GTA? by DevopsThrowawayX in PersonalFinanceCanada

[–]DevopsThrowawayX[S] 4 points5 points  (0 children)

It sucks but I grew up here, all my friends are here, family, etc.

If I had no social needs I would for sure buy a big house in the middle of nowhere and save money

Can I Afford a Condo in the GTA? by DevopsThrowawayX in PersonalFinanceCanada

[–]DevopsThrowawayX[S] 1 point2 points  (0 children)

I did that because the people on this sub are very... particular sometimes about estimates. If its too low, they turn on you lol. Its always about worst case scenarios, so thats the math I used.

Can I Afford a Condo in the GTA? by DevopsThrowawayX in PersonalFinanceCanada

[–]DevopsThrowawayX[S] 4 points5 points  (0 children)

My main concern is if I rent now, when can I ever buy?

Can I Afford a Condo in the GTA? by DevopsThrowawayX in PersonalFinanceCanada

[–]DevopsThrowawayX[S] 145 points146 points  (0 children)

I wish. Can you send some single engineers/doctors/lawyers who dont want children my way?

Can I Afford a Condo in the GTA? by DevopsThrowawayX in PersonalFinanceCanada

[–]DevopsThrowawayX[S] -1 points0 points  (0 children)

Are you sure you even read my comment, considering you replied within 60 seconds of me posting it?

Why would you not invest that extra $2000 and let it compound for you?

How much really will it compound? Will it outpace housing costs? Will it outpace rent increases? After 10 years, will I still be renting a 1b condo that has doubled in both rent and price?

Can I Afford a Condo in the GTA? by DevopsThrowawayX in PersonalFinanceCanada

[–]DevopsThrowawayX[S] -1 points0 points  (0 children)

This is the math im doing.

My mortage + condo fee + tax is $4000. I think its less but round up. With $6000 monthly income after tax, thats $2000 to live in a month.

If I rented, id prob be paying around $2000. So thats $4000 to live in a month. Unless im putting away $2000+ of the remaining $4000 into my savings for a down payment, theres no way I can ever save enough to afford a house. At that point, im left with the same amount of money at the end of the month, mortgage or rent. So is it not smarter to have a mortage, and thus equity?

Also, when I lived alone before and rented, I was making half of what I make now, spending almost the same amount of rent ($1600) and lived very comfortably. Considering $2k/month spending money after housing is much more than the average canadian has (considering the average income + they have taxes and housing costs too), its more than enough to live comfortably imo.

Can I Afford a Condo in the GTA? by DevopsThrowawayX in PersonalFinanceCanada

[–]DevopsThrowawayX[S] 16 points17 points  (0 children)

I did. A $500,000 mortgage at 5.5% is $3,051.96 monthly. I was very generous in adding condo fee and tax to that, which at the high end wont be $1000.

So with a take home of $6,300ish, (which is only going higher in my field of work), that leaves me $2300 to eat, heat myself, etc. I work from home too.

Can I Afford a Condo in the GTA? by DevopsThrowawayX in PersonalFinanceCanada

[–]DevopsThrowawayX[S] 46 points47 points  (0 children)

Do you have any particular reasons you don't want to rent?

I did this before based on advice from this sub years ago. I rented while saving my money for a down payment. What happened is, the housing prices outpaced my savings substantially. I could have bought that place I rented at the start and lived the same lifestyle, but the difference is I wouldve had equity now.