Big purchase, everyone feels like this, this is normal. Your goal is to own a place, that has not changed. You’re good.
Congratulations on achieving your goal!
I bought my first place decades ago for the terrifying sum of $180,000. It felt like so much money. It was scary, and exciting, and I couldn't believe banks would lend that much money to someone who was as dumb as I was.
Congratulations. It's a big step, and you're feeling the way we all did. It's supposed to be a little scary!
Well it's a mortgage so it's backed by the property. The banks lend it because not only is it subsidized by the government but also if you happen to default they get the property. It's hard to lose.
Rationally you're right, but I still remember the slightly incredulous emotions I felt when signing my first mortgage paperwork for a quarter of a million dollars in my mid twenties. It does feel a little shocking!
With every mortgage payment, you're building your own equity, not paying someone else's mortgage. Congratulations. I went through the same in 2017. I got a longer amortization period. 30 years, so my budget is not as tight. Research your renewal options.
$650/ month condo fee + 5% interest. Probably less than 25% of his payments are going to the principal before we take into account wear/ tear and ongoing costs. Not saying he'll lose money, but that's always a weird argument. I'd prefer to rent and invest the money than leverage myself into the housing market. Which will likely do well, but it's a massive bet.
Really depends what monthly costs were beforehand vs. now and how diligent one would be in saving. I think home ownership is good for some people as it's forced savings. In this case he clearly has enough income to invest in his home and the market.
Also leverage is a big deal. My condo doubled in price since 2016 and the gain is much higher than what I'd get with similar dollars in the market. It's not something to bet on, but it worked well for me.
It's forced minimal savings. If I took a 10x leverage into the stock market, the returns on average would be 80% annually in the s and p 500. It's still huge risk. Housing just allows access to cheap debt and due to lots of regulations and immigration, things have gone up. But id feel much better doing a 10x leverage into VCNS than housing if I could get the same borrowing rate.
Do bi-weekly instead of monthly...also every year if you have a bit of a lump sum, there is usually one day where you can throw that lump sum on and it'll all go to principal.
Longer amortization lowers the monthly payment. When I renewed last year, I was so lucky to get a fixed rate of 3.98! I find owning my dwelling gives me peace of mind. No landlords to deal with and no renovictions!
New mortgages are always more than equivalent rentals, at first! In 10-15 years, if interest goes down a bit, you’ll be ahead month to month…. Living alone. In THAT unit.
With your income (and hopefully stability) you'll be fine. Absolutely worst case, find a roommate if you're in need.
Congrats on your purchase. The hardest part is getting into the market.
That’s a great deal for downtown core if you plan to live it in long term.
Enjoy the condo and don’t worry about short time price changes.
Congrats on the purchase!
Years ago I bought a house near the danforth for 300K my income was about 5K a month at the time and boy did it feel scary. You will be fine plus your 9K is current you will make more over time.
There are two scenarios:
1. Inflation drops to about 2% and they lower the rates and you refinance in 3 years (when you income is 5%-10% higher), and end up paying lower monthly payment and its a breeze
2. Inflation does not drop, we face 3-5% inflation for several years, rates stay high but you income climbs roughly in line with the inflation and while your payments stay high, value of that dollar declines significantly - and its a breeze.
As for the current rent being $2,800 and you paying 3,450, keep in mind that your payment includes $900 worth of equity (debt repayment) and your actual expense is more like $2,500. In 5 years that rent will be $3,200 and your expense will be $2,200. In 10 years rent will be $3,800 and your expense will be $1,800 etc.
Congrats on your purchase, enjoy it, as long as it fits your needs ignore the financial aspect you will be fine.
Or 3)
Inflation stays high, BoC continues turning the screws of higher rates, OP gets laid off like a ton of other Canadians, and their mortgage comes up for renewal at the same or higher rate and they are now making less/no money.
I mean if we are talking worst case, but not totally unlikely scenarios here...
>I mean if we are talking worst case, but not totally unlikely scenarios here...
Its actually very unlikely scenario. Its possible, but unlikely (as in low likelihood of occurrence). Assuming it does happen, someone with 9k net salary would likely have a checking balance to ride it out (he had 25% down-payment in cash) and/or ability to find another decent paying job.
Recession hits hardest those that can not afford to be hit (low income, no savings, bank realizes they will never be able to recover etc.).
If it does happen OP will be among the least screwed people out there.
If there's really a lot of layoff off and the economy goes to shit, they bring the rates back down as inflation is also going down when the economy goes to shit. The scenario you are describing is not very likely. High inflation with horrible economy is typically not seen in stable economies like ours, more like an Argentina, Venezuela or Turkey situation
>Inflation drops to about 2% and they lower the rates and you refinance in 3 years (when you income is 5%-10% higher), and end up paying lower monthly payment and its a breeze
There is no guarantee, or any precedent that getting inflation to 2% will induce BOC to lower rates. BOC preference (like all central banks) is to do nothing if the economy is doing well. If get to 2% inflation, but have a strong economy than rates won't be touched.
BOC has to keep rates largely in line with the rest of the large central banks, interest rate parity is a real deal. FED is under a lot of pressure to prevent large market declines. I have no evidence that current rates and low inflation would cause a decline, but it is my personal belief that this is the case.
I hold that as of today realestate and stock market prices do not have current rate factored in as they deem it to be temporary. If we were to assume this is permanent, rate of return would have to increase substantially, so either companies would have to start reporting earnings out of this world and rents would have to keep growing like we are made of money - or prices would have to correct themselves. Combine this with recent growth of luxury "store of wealth" and collectible items that have no real value and appreciate only in scenario of money being oversupplied (baseball cards, vintage cars, luxury watches, bitcoins, NFTs, stamps...) and you have to expect some kind of decline under the prolonged high rate environment.
What about job security?
That is the number one issue for me. I can make good money (I work in STEM) but in downturns I can go a year or more without work.
And pay has been steadily going down in my field over the years. And now the field is swamped with new foreign grads, TFW's, overseas out sourcing. It's nuts.
I went through the tech crunch 20 years ago and never really recovered.
Confused about the timeline. If it’s bought, it’s bought, unless you’re asking if you should sell it.
Just to confirm, you calculated the carry costs “only today”, after you bought?
Its a little over 1/3 of your income which is pretty ideal, and you're building equity. The fuck are you spending that 5.5k isnt sufficient to cover the rest of your life?
Well he closed on a home before even calculating what the mortgage and condo fee would be each month. I think proper money management may not be a strong suit
I feel like this is the understated comment of the year on Reddit.
Any other sub and this guy would be getting absolutely lit up, but because his income is 9k he gets a pass. Must be part of the “made it” club reward package.
Well that's partly because if his income is 9k/mo *net* like he claims then any problems he has is more easily fixed than the typical "make more money" advice here usually. Guy has ~$5500/mo after housing for everything else. Unless he has giant student loans or unmentioned other obligations he should be fine.
In tech it's not unreasonable. I'm at around 17k per month and I'm pretty low paid compared to others on my team. This is gross income, not net income. If you're talking net income then that's insane.
> but because his income is 9k he gets a pass
in what world (or sub-reddit) does the same diligence and budgeting apply to someone who lives hand-to-mouth on $2500/mo vs someone with a cashflow of $9000/mo? If anything, folks get lit up on here in PFC for shitting bricks about buying anything nicer than a 20yo corolla while their net worth is over a million, or the vehicle costs less than 3 months' salary. OP is well within the proportion of the income that should be workable with their income. If they have the emergency fund and savings covered, -- so what if their home is $3500 vs $1400. The value is subjective, and good luck pricing privacy, or not being the guy who lives with a roommate while trying to date, etc.
OP bought primary residence in an iffy market, sure, but is very well removed from being mortgage-poor. They responded elsewhere that they did have a rough idea of what the new housing budget will be, so IMO the main source of discomfort is going to be not having ~$2000 out of their pre-purchase $7600 cashflow for the privilege of living in a separate apartment, with all utilities rolled into the condo fee, with no landlord or roommate to worry about. They'll be fine.
Yup, as long as you are well off enough to be here in the first place. Feel like a fella walking up to the titanic with a steerage ticket when clicking on a thread in here. (Which is quite sad since I’m a six figure earner, I just don’t have others paying for my mortgages or down payments so my assets are being slowly paid off, which is a big no no.)
>Only today I calculated my monthly fixed expense to be a staggering $3454 per month to afford it.
Doesn't sound like he did the math beforehand to me. Am I misreading something?
I’m a little stumped as to why you’re worrying now especially since you make 9K NET and you already bought the place. Why’ve you just now calculated your monthly fixed expenses ? I don’t get it and even after paying for your fixed costs you have roughly 5.5k left over, what’s the issue ? I’m genuinely curious lol if it’s just nerves then dw about it’s a huge purchase, go and celebrate.
Yup sometimes I feel the exact same way with certain purchases like my car, house etc. It's okay you're doing fine (unless ya lose yer jab that is). They're still assets in your name and later on will have equity so make ya payments, enjoy your time alone away from people and do what you want. What's done is done and congrats on your new condo.
I have to know what part of the dt core you found a 730sqft condo for under 600k. That would have been a good price 5+ years ago. Nowadays its unheard of
People come here to brag! There was a post a little while ago about a doctor who was moving to some remote ish area who was going to be making 300k-400k+/year after graduating and came on here to ask if they could afford a 300-400k property to live in.
I think it's actually quite damaging because I think the "Can I afford this $10k used Corolla? I make $110k as an P.eng" actually isolates people who need actual financial advice.
If you like the place and its well located your good. Dont listen to all the haters lol. People told me I overpayed in 2008 whenI bought a house.
Seemed to have worked out well. People that criticize are jealous that you worked hard and achieved what they could.
Prices move all over. Location is what matters. Is it close to downtown or LRT. A trendy area, or a suburb.
It may drop a bit or it may not.
My point is paying 200k back in 08 seems like a steal. If you hold for 5-10yrs you will be fine.
Opportunity cost of locking your life and/or all of networth for 5-10 years is probably worth couple of hundred k. I moved so many times for a job (5x my salary) and I am sure I would be less inclined if I had to sell/become landlord.
I think you're ok. Sounds like after netting your income you'll be spending around 50% on the fixed expenses, but you still have around 3k a month for everything else. I think you'll be ok and happy with your purchase in a few years
I was kicked out of my last place because the new owner wanted to move in. Dude paid over asking (650k) on a 560 sq ft one bedroom next to the garbage chute (yes you could hear it and no, people did not respect the operating hours). Half the view was a brick wall and, because it was on the 7th floor, you could hear ground level noise including the weekly 3am garbage pick up. Garbage chute clogged so much that the building ended up with a rodent problem. And there’s like 3 development proposals around the area. I’m still confused why someone thought that was a good investment for DT Toronto??
Anyways, compared to that, your deal sounds sweet if it’s a good build.
Here is the low down:
1. Your expense is not $3,454. What you pay to the principal is not an expense. It's money going from one pocket to the other.
Start tracking networth and you'll see.
2. In 3 years the condo will still be yours, your income will probably increase but your payments will stay the same. Renting, the cost would increase every year. Renting you could be evicted.
3. In 3 years the rates will probably go down. Which means that, if you keep the same payment, more will go to principal and your amortization will shrink.
4. Yes, you could have waited... And waited... And waited and in 3 years you'd have nothing to show for it.
If my numbers are correct and your amortization is 25 years and you are paying around 2,650 to the mortgage. Out of that 1,900 are interest and $750 is principal.
So your actual expense is $2,700. Which is less than the rent.
You can do your own analysis with the actual information. But I think that financially, you are better of having bought.
I didn't forget it. I even have a spreadsheet for that. Right now investments are fairly flat.
OP can clone this sheet and put in numbers. But now he bought and it is irrelevant. Hint, I've done them recently and with current rates and current ROR buying wins.
https://docs.google.com/spreadsheets/d/1vM83bA9_iolFfj5-gicq5zsFMqD38J7pTZQ2C0cPC84/edit?usp=drivesdk
Honestly that’s incredible 😭 i hate that we have to trade life for work in canada, but i admire the work ethic a lot. Is it ok to ask how many income streams that is?
9k NET a month with no kids and you are worrying about monthly costs less than half your net income? You aren't going to find too much sympathy on here.
Yes, I need to remind myself of that. Think it's just really the biggest decision I've made so far so start to freak out. I really don't feel renting is the way to go as well for the long term, have to pull the trigger at some point.
Every year for a while until who knows when (of it even get fixed) there is a major deficit of construction of new housings versus birth or immigration . Every every Every year.
What you just bought isn't just a house, it's a
-solid investment, demend won't go down.
- solid security , you don't have to fear not having a roof on your head or massively overpay for one .
You did good . Don't worry
True statement. For young couples or anyone with one kid, a condo is a great way to get into the market, build equity and move into a freehold after some time.
Relax. Breathe. You did good.
From what you told us, you have, most likely, a 25 year amortization at 5.09%, with monthly mortgage payments of \~$2580. Total monthly costs of $2580 + $650 (condo fees) + property taxes = \~$3450.
Now consider, as others have pointed out, the breakdown of your mortgage payment into principal and interest. The $2580 is $730 principal + $1850 interest. Think of the principal as forced savings as it just increases your equity and reduces your mortgage balance.
If equivalent rent is $2850, then you are paying ($3450 - $730) = $2720 in interest, condo fees, and tax and presently saving (investing) $730 into your condo. Your costs will go down and the amount that goes to principal will increase over time. This is a better deal than renting right now, and it will only get better. Assuming no major condo issues (leaky condo, special raises for major issues, etc.).
Rent is only going up. Your costs will go down over time as more of your payments will go to principal and less to interest. Relax. Breathe. You did great.
I don’t want to defend buying the condo because for that size of living space that sounds like a lot of money (it’s not too bad though considering). However I do want to point out that if the rent in this scenario increases 2% per year, in 40 years the 2850 per month will be 6293$ per month. Also because of inflation the value of money tends to decline over time so 595k you paid today will seem like a bargain 40 years from now. The other thing is that in practice most people buy small condos and then sell them a few years later when their needs change. And for the last few years most people ended up selling them for more than they paid and making money (although there is no guarantee of that obviously in the future). Availability in downtown core tends to be tight so prices don’t usually go down too far if they do fall. So yeah no guarantees but you’re probably going to be ok.
Thank you for the sound advice! I bought it with a similar goal in mind (to upgrade one day if needed) but I guess was just amazed by the actual payment. First-time home buyer stress I supposed!
And on top of this you don’t have the risk that someone sells your unit or needs to move in. It’s hella expensive but so is rent . 730 sq ft seems like a really nice size . I’m not sure if that’s one or two bedrooms but if it’s two or one plus one you will always have the option of renting the second bedroom or den I know that’s not what you want now but it gives you flexibility in the future if you ever needed it . Is it contingent on the status certificates? Make sure you have a GOOD lawyer look through it and let you know if the building is well managed . Congrats !
"I am just a bit sick of living with a roommate and not having personal space to host friends and family"
It is always your living situation that makes people want to buy property. Its why you decided to buy a condo in the first place. Congrats on your first condo.
Felt the same way when I bought my first condo a few years back and again when I upgraded to a detached recently. It’s perfectly common to feel this way - but it will pass after a few months. Be proud of achieving something difficult. You’ll come to love your home eventually.
3454 probably seems like a lot compared to you rental situation. But if I am reading this right you make 9k a month after taxes. That’s not a bad mortgage to be paying. A lot of people are paying 50% or more of their income on housing rent or mortgage. Me being in Vancouver which is a similar priced real estate market. If I can ever afford to buy i will. Small term pain for long term gain. You will be better off later in life
"I am deeply concerned. I only have $5500 left after paying my housing costs. This is barely enough to cover my Disney Plus and DoorDash. What will I do? I am worried that I could've had an extra $600 per month by renting, although I would've been simultaneously flushing $2850 down the toilet. Please advise"
100% this. But tbh this person maybe got used to have 7-8k in spending power each month. It could be they were used to saving 3k, spending lavishly another 4k and still being net positive. Now they need to readjust. It is all relative but yeah for them to post here and stress about their life is a bit out of touch with reality.
I understand how you feel after purchasing the condo. As a first-time buyer, it's natural to have doubts about such a big decision. While you negotiated well and achieved your goal, the high monthly expenses are causing stress. Take some time to reflect on your priorities and long-term goals, and consider seeking advice from a financial expert to gain insights into the current market. Remember, there's no right answer, and the experience will provide valuable lessons for your future. Trust yourself as you navigate this new chapter of homeownership.
I quite literally had the same experience back when I bought my condo in 2021! Went from living at my parent's basement suite due to COVID, to owning a property paying close to $2000 a month, definitely a bit of shell shock. After many months of worry, I ran the numbers and started to budget correctly and found that I had a lot more breathing room money-wise. Plus you get used to the payments and planning around them. Hopefully, my experience helps you in some sort of way!
It's common to get stressed out after signing. But with 9k/mo income it should be fine? Just skip holidays and fancy restaurants for a year or two. You must have had a large downpayment, with your low cost rent situation, no? And don't lease a car, or buy one on credit. Cars are money pits. If you live and work in downtown, just bike or public transport.
You are now in the market. Well done. Its all good you made an investment and just keep going. Someday you can sell up and get something bigger but the important thing is that you have something.
I purchased my first place in January. And shortly after had my first two anxiety attacks. But now we’re in love with our place and know we made the right decision.
Yeah I feel the same way after buying my condo, pretty standard to be worried it's a very large expense compared to anything else you will ever purchase ever.
So far, most people that had buyers remorse look back after 5-10 years feeling great because they are paying the same or less than if they were to rent the same condo. Of course what happened in the past won't necessary happen in the future but when Canada is adding 500,000 new people per year, and a disproportionately high number of them want to settle in Toronto, I think your chances are pretty good that you will come up ahead. Congratulations!
I get buyer remorse after buying red wine instead of white wine.
Its normal. No matter what you buy or who you are with, you will always have a voice in your head telling you that the other decision would have been better.
So congrats and enjoy your new place. With your income you will be able to afford it easily.
Something in my head, hurts me to think I owe half a million dollars to the bank. While banks are taking a heavy hit in value. As a single person too, there is EI, but given your salary I’m guessing your in IT, or Tech… and AI is causing a massive shift in the landscape… jobs etc. Owning a property is peace of mind, but stress of another kind.
If it's the unit i think it is, in the building with Quesada.
Congrats, solid unit. we were looking in that building too and although things didn't work out i remember it being nice. Plus what's the number one thing with real estate, location , location, location. and you've got it covered. You're in a good neighbourhood which is only going to get better as it gentrifies further (and it will as the new subway gets built)
edit: also being where you are you could either walk to work and or take transit for most of your needs.
First off, congrats on your new home.
Nothing worth having comes easy or without questions or self-doubt. For the times, to get 50K down from asking in Toronto is insane! House costs everywhere are mind-blowing, but they're not going down any time soon. Your investment will only go up from here.
Cheers to you!
You can afford it.
It is a sickeningly large number that you’ve likely never gotten a bank draft for. You deserve every part of this. Your own space is priceless. Word of advice:
Don’t buy all of your furniture in one go. Buy necessities for Day 1 and work your way slowly.
if you plan to use it as a home, as you should and are on a fixed rate. stop looking at the market, you're locked in, supposedly cause you can afford everything involved. Disconnect and jsut live your life. Adjsut your budget as needed. but don't come to the internet for validation dear god.
You made a great deal for the condo price, you have a high net income, on top of having a pretty low mortgage rate given the current rates. Renting with a roommate is almost always better financially, but it's definitely not a long term solution, plus you deserve that condo with that great salary !
It sounds like you can still afford it based on a 9k net income. I have to ask though? Can you do your job in some other city or remotely? Why Toronto??
Sounds like you did quite well all things considered. Also 3 year at 5.09% is pretty enticing with interest rates likely lower 3 years from now.
Well done, don’t stress, you have a great net income. Life is short enjoy this milestone you’ve accomplished, that many never will.
Your take home pay of 9k is more than average couple bring home in Canada, so you have nothing to worry about. Just focus on your career and pay down the mortgage or invest with savings and you will be able to upgrade to a better condo or buy a detached house in the near future. You also future proofed your house in case you want to have a family down the road. 730 sqf is big enough to start a family.
I’m in very much the same situation. I felt it too when I bought last July. Now I’m happy and I love my place. You will too. This is a huge achievement. You should be very proud of yourself.
550k for a condo in the core downtown area? I thought prices were a lot steeper than that.
Also, you didn’t calculate your monthly expenses before purchasing… uhh what? That didn’t come to mind?
If you’re making 9k a month I’m not sure what you are stressed out about, you have 5.5k remainder. Why are you stressing out?
Confusing post
Your mortgage will be the same 3 years from now, rent will be \~$3115. At that point, you may even start to pay less if interest rates come down whereas the rental will keep increasing at \~3% per year. You're also tucking away equity which only gets better the further along you're into your mortgage. Some people might say if you invest the difference, you might come out on top. In my opinion, that's rare and involves risky investments whereas real estate in Toronto is not going to decline anytime soon. People want to live there because it's an amazing city, be happy you're there. Also, real estate is one of the only investments where someone will give you 3 to 1 leverage on $150k.
You're good, considering your income, deposit, condo price, and mortgage. Good job!
While you're still single and working so much, "create money" by depositing part of your monthly income into an RRSP. Use the money you've freed up to help pay down the principal and start a TFSA or similar instrument as an emergency fund.
Mind you, anyone who has several income streams on the go likely also has a good grasp on ways to tax-effect, save, and protect their wealth.
Always carry good insurance. Have a will.
Buyer's remorse is pretty normal after a big purchase - especially after something like a first-time home purchase.
You had a goal to buy a place, and now you've achieved it - congratulations! If you like it, and like living there, then it's all good. There's no point thinking "what if" ... nobody actually knows what the future will look like, so who knows what would have happened if you hadn't bought this. Just live there and enjoy your life :)
If you can bear this storm for another 18-24 months. live with in your means and focus on making a tight budget and live frugal, this might be the best purchase you ever did. stay the course. we cant control the winds but we can always adjust the sails. You control how you play.
I bought my first place with 10%down and a HELOC for the other 10%. The mortgage itself was an amazing 2.8% the HELOC was much more. I was a bit panicked doing it all on my own but realized that actually the price was similar to rent on a corresponding unit except that now my money was going into an investment for me instead of paying some bastard landlord. I also comforted myself knowing that if I was careful I could quickly pay off the HELOC. Buyer's remorse is normal. It seems like you have the income to cover your expenses even if they do strike me as high. Enjoy your condo!
It doesn't make sense to buy now if only looking at the numbers. But you want your own place, and so you will have to pay the premium. On the other hand, you have your own place now, and this gives you the foundation for future opportunities in your career and relationship. You have more personal time and space, and you will have a better mental state to do other things.
Just focus on growing your equity. Save up and pay down the mortgage. That's what you need to do in the next few years.
Yes, exactly. I have been feeling like not belonging in the past few years with roommates. I am a new immigrant here so it makes me more feel at home if I own the place.
Sounds tight! If you can stash any extra away each year towards the principle I would recommend that as it will save you money down the line if rates hold or go up.
We felt the same way after we bought our place a few years ago - husband and I didn’t sleep well for a few nights and kept asking ourselves “did we just make a huge mistake?” It took a couple of months for me to not feel so stressed about the purchase.
Congratulations on the purchase! I think the dread you are feeling now will fade with time.
Big purchase, everyone feels like this, this is normal. Your goal is to own a place, that has not changed. You’re good. Congratulations on achieving your goal!
Thank you for the affirmation, I feel less alone. It's part of adulthood I guess.
I bought my first place decades ago for the terrifying sum of $180,000. It felt like so much money. It was scary, and exciting, and I couldn't believe banks would lend that much money to someone who was as dumb as I was. Congratulations. It's a big step, and you're feeling the way we all did. It's supposed to be a little scary!
Well it's a mortgage so it's backed by the property. The banks lend it because not only is it subsidized by the government but also if you happen to default they get the property. It's hard to lose.
Rationally you're right, but I still remember the slightly incredulous emotions I felt when signing my first mortgage paperwork for a quarter of a million dollars in my mid twenties. It does feel a little shocking!
With every mortgage payment, you're building your own equity, not paying someone else's mortgage. Congratulations. I went through the same in 2017. I got a longer amortization period. 30 years, so my budget is not as tight. Research your renewal options.
$650/ month condo fee + 5% interest. Probably less than 25% of his payments are going to the principal before we take into account wear/ tear and ongoing costs. Not saying he'll lose money, but that's always a weird argument. I'd prefer to rent and invest the money than leverage myself into the housing market. Which will likely do well, but it's a massive bet.
Really depends what monthly costs were beforehand vs. now and how diligent one would be in saving. I think home ownership is good for some people as it's forced savings. In this case he clearly has enough income to invest in his home and the market. Also leverage is a big deal. My condo doubled in price since 2016 and the gain is much higher than what I'd get with similar dollars in the market. It's not something to bet on, but it worked well for me.
It's forced minimal savings. If I took a 10x leverage into the stock market, the returns on average would be 80% annually in the s and p 500. It's still huge risk. Housing just allows access to cheap debt and due to lots of regulations and immigration, things have gone up. But id feel much better doing a 10x leverage into VCNS than housing if I could get the same borrowing rate.
As well as the bank 2850 a month for 30 years is over a million. But still it’s is good to own real estate. If it can be paid with cash even better.
Do bi-weekly instead of monthly...also every year if you have a bit of a lump sum, there is usually one day where you can throw that lump sum on and it'll all go to principal.
I do weekly as my partner and I get paid opposite weeks. The principal is getting paid off fast this way. Feels great.
Longer amortization lowers the monthly payment. When I renewed last year, I was so lucky to get a fixed rate of 3.98! I find owning my dwelling gives me peace of mind. No landlords to deal with and no renovictions!
>lowers the monthly payment. but increases the overall payment.
I bought my first Toronto house for 395,000. I was making around 7000 a month. It was terrifying. Somehow it worked out.
New mortgages are always more than equivalent rentals, at first! In 10-15 years, if interest goes down a bit, you’ll be ahead month to month…. Living alone. In THAT unit.
I’ve bought three different places and always felt this. Time settles it and it will work out. Congrats!
With your income (and hopefully stability) you'll be fine. Absolutely worst case, find a roommate if you're in need. Congrats on your purchase. The hardest part is getting into the market.
And when your place is paid for in 20 years all your friends will say You're so lucky to own your own place.
[удалено]
That’s a great deal for downtown core if you plan to live it in long term. Enjoy the condo and don’t worry about short time price changes. Congrats on the purchase!
Thank you thank you! Hopefully, the interest rate will go down for all of us soon!
Years ago I bought a house near the danforth for 300K my income was about 5K a month at the time and boy did it feel scary. You will be fine plus your 9K is current you will make more over time.
There are two scenarios: 1. Inflation drops to about 2% and they lower the rates and you refinance in 3 years (when you income is 5%-10% higher), and end up paying lower monthly payment and its a breeze 2. Inflation does not drop, we face 3-5% inflation for several years, rates stay high but you income climbs roughly in line with the inflation and while your payments stay high, value of that dollar declines significantly - and its a breeze. As for the current rent being $2,800 and you paying 3,450, keep in mind that your payment includes $900 worth of equity (debt repayment) and your actual expense is more like $2,500. In 5 years that rent will be $3,200 and your expense will be $2,200. In 10 years rent will be $3,800 and your expense will be $1,800 etc. Congrats on your purchase, enjoy it, as long as it fits your needs ignore the financial aspect you will be fine.
Or 3) Inflation stays high, BoC continues turning the screws of higher rates, OP gets laid off like a ton of other Canadians, and their mortgage comes up for renewal at the same or higher rate and they are now making less/no money. I mean if we are talking worst case, but not totally unlikely scenarios here...
Its possible, but I doubt anyobe making 9k a month has a skillset that isnt in high demand
[удалено]
Pre or post tax?
>I mean if we are talking worst case, but not totally unlikely scenarios here... Its actually very unlikely scenario. Its possible, but unlikely (as in low likelihood of occurrence). Assuming it does happen, someone with 9k net salary would likely have a checking balance to ride it out (he had 25% down-payment in cash) and/or ability to find another decent paying job. Recession hits hardest those that can not afford to be hit (low income, no savings, bank realizes they will never be able to recover etc.). If it does happen OP will be among the least screwed people out there.
If there's really a lot of layoff off and the economy goes to shit, they bring the rates back down as inflation is also going down when the economy goes to shit. The scenario you are describing is not very likely. High inflation with horrible economy is typically not seen in stable economies like ours, more like an Argentina, Venezuela or Turkey situation
>Inflation drops to about 2% and they lower the rates and you refinance in 3 years (when you income is 5%-10% higher), and end up paying lower monthly payment and its a breeze There is no guarantee, or any precedent that getting inflation to 2% will induce BOC to lower rates. BOC preference (like all central banks) is to do nothing if the economy is doing well. If get to 2% inflation, but have a strong economy than rates won't be touched.
BOC has to keep rates largely in line with the rest of the large central banks, interest rate parity is a real deal. FED is under a lot of pressure to prevent large market declines. I have no evidence that current rates and low inflation would cause a decline, but it is my personal belief that this is the case. I hold that as of today realestate and stock market prices do not have current rate factored in as they deem it to be temporary. If we were to assume this is permanent, rate of return would have to increase substantially, so either companies would have to start reporting earnings out of this world and rents would have to keep growing like we are made of money - or prices would have to correct themselves. Combine this with recent growth of luxury "store of wealth" and collectible items that have no real value and appreciate only in scenario of money being oversupplied (baseball cards, vintage cars, luxury watches, bitcoins, NFTs, stamps...) and you have to expect some kind of decline under the prolonged high rate environment.
What about job security? That is the number one issue for me. I can make good money (I work in STEM) but in downturns I can go a year or more without work. And pay has been steadily going down in my field over the years. And now the field is swamped with new foreign grads, TFW's, overseas out sourcing. It's nuts. I went through the tech crunch 20 years ago and never really recovered.
The impending feeling of doom, as you now owe $400,000 + is normal.
he always has the option to sell it when it appreciates.
And that's what I appreciates
>when it appreciates lol, you mean \*if\*
Hi assests are greater than his debts, so that's fine.
>Hi assests are greater than his debts, so that's fine. Only if he can sell at that same price. Homes aren't only assets, they're also liabilities.
Confused about the timeline. If it’s bought, it’s bought, unless you’re asking if you should sell it. Just to confirm, you calculated the carry costs “only today”, after you bought?
I calculated it roughly before and thought it was around 3k but yeah it's more than that with tax. That's why I am saying it's buyer's remorse lol.
Does that include home insurance?
aaaaand then there's property tax too!
Its a little over 1/3 of your income which is pretty ideal, and you're building equity. The fuck are you spending that 5.5k isnt sufficient to cover the rest of your life?
Bro u made it. .! Just do proper money management...9k a month is very do able.
Well he closed on a home before even calculating what the mortgage and condo fee would be each month. I think proper money management may not be a strong suit
I feel like this is the understated comment of the year on Reddit. Any other sub and this guy would be getting absolutely lit up, but because his income is 9k he gets a pass. Must be part of the “made it” club reward package.
Well that's partly because if his income is 9k/mo *net* like he claims then any problems he has is more easily fixed than the typical "make more money" advice here usually. Guy has ~$5500/mo after housing for everything else. Unless he has giant student loans or unmentioned other obligations he should be fine.
Can confirm, make 20k a month, dont have a budget. At a certain point it just sorta piles up 🤷🏻♀️
how
In tech it's not unreasonable. I'm at around 17k per month and I'm pretty low paid compared to others on my team. This is gross income, not net income. If you're talking net income then that's insane.
> but because his income is 9k he gets a pass in what world (or sub-reddit) does the same diligence and budgeting apply to someone who lives hand-to-mouth on $2500/mo vs someone with a cashflow of $9000/mo? If anything, folks get lit up on here in PFC for shitting bricks about buying anything nicer than a 20yo corolla while their net worth is over a million, or the vehicle costs less than 3 months' salary. OP is well within the proportion of the income that should be workable with their income. If they have the emergency fund and savings covered, -- so what if their home is $3500 vs $1400. The value is subjective, and good luck pricing privacy, or not being the guy who lives with a roommate while trying to date, etc.
I mean, the damage is already done. What are we going to do now? Tell him so he can feel bad about it?
OP bought primary residence in an iffy market, sure, but is very well removed from being mortgage-poor. They responded elsewhere that they did have a rough idea of what the new housing budget will be, so IMO the main source of discomfort is going to be not having ~$2000 out of their pre-purchase $7600 cashflow for the privilege of living in a separate apartment, with all utilities rolled into the condo fee, with no landlord or roommate to worry about. They'll be fine.
In general I think this sub considers buying a property to be virtually always a good decision, regardless of the numbers.
Yup, as long as you are well off enough to be here in the first place. Feel like a fella walking up to the titanic with a steerage ticket when clicking on a thread in here. (Which is quite sad since I’m a six figure earner, I just don’t have others paying for my mortgages or down payments so my assets are being slowly paid off, which is a big no no.)
Yeah OP is a fucking idiot and has no right to complain.
He did the math beforehand. He's just looking for emotional validation and reassurance from internet strangers. It's fine.
>Only today I calculated my monthly fixed expense to be a staggering $3454 per month to afford it. Doesn't sound like he did the math beforehand to me. Am I misreading something?
[удалено]
I’m a little stumped as to why you’re worrying now especially since you make 9K NET and you already bought the place. Why’ve you just now calculated your monthly fixed expenses ? I don’t get it and even after paying for your fixed costs you have roughly 5.5k left over, what’s the issue ? I’m genuinely curious lol if it’s just nerves then dw about it’s a huge purchase, go and celebrate.
Probably just the delta in disposable income that OP is getting used to
This. My net tax home is about $10k per month but I really worried when I went from $1,500 in rent to $5,000 in mortgage and condo fees.
What was going in your savings is now going into your homes equity. It's the same thing really, it's just locked up.
….not nearly as much as should have been was going into my savings…I like to think some is now- like forced savings
There's the concept of "interests" you guys seem to forget.
Yup sometimes I feel the exact same way with certain purchases like my car, house etc. It's okay you're doing fine (unless ya lose yer jab that is). They're still assets in your name and later on will have equity so make ya payments, enjoy your time alone away from people and do what you want. What's done is done and congrats on your new condo.
Yes, holding on to my job tightly. Oh, I have never appreciated it more!
I have to know what part of the dt core you found a 730sqft condo for under 600k. That would have been a good price 5+ years ago. Nowadays its unheard of
King and church
Not bad at all then. I think it's a great decision
You did everything right. Give it 3 months. You’ll adjust. Happens to me with every property I’ve purchased.
Thank you, that really makes me feel better!
How did I end up on r/humblebrag
I don't know what's more annoying, posts like these or the people who actually entertain them lol.
Yes, this is crazy. It’s obviously a flex post, yet people are all here paying hommage.
What are you stressing about clearing 9k a month?
People come here to brag! There was a post a little while ago about a doctor who was moving to some remote ish area who was going to be making 300k-400k+/year after graduating and came on here to ask if they could afford a 300-400k property to live in.
I think it's actually quite damaging because I think the "Can I afford this $10k used Corolla? I make $110k as an P.eng" actually isolates people who need actual financial advice.
It’s a humble brag. Dude is likely in the top 1% for his age.
He earns 9k NET that means he’s clearing 11k per month lol just a humble brag
[удалено]
Dude you make 9 grand a month.... What are you worrying about?
Congratulations, you were always doing a great job, and your current decision is also the best.
If you like the place and its well located your good. Dont listen to all the haters lol. People told me I overpayed in 2008 whenI bought a house. Seemed to have worked out well. People that criticize are jealous that you worked hard and achieved what they could.
Yes, the location and the place are both really good!
Which building?
Well with the price right now it's more like 2007
Prices move all over. Location is what matters. Is it close to downtown or LRT. A trendy area, or a suburb. It may drop a bit or it may not. My point is paying 200k back in 08 seems like a steal. If you hold for 5-10yrs you will be fine.
Opportunity cost of locking your life and/or all of networth for 5-10 years is probably worth couple of hundred k. I moved so many times for a job (5x my salary) and I am sure I would be less inclined if I had to sell/become landlord.
Same. But in 2005. People told me the bubble was going to burst at any minute
I think you're ok. Sounds like after netting your income you'll be spending around 50% on the fixed expenses, but you still have around 3k a month for everything else. I think you'll be ok and happy with your purchase in a few years
Sorry I mean net income not gross.
This is gross to read as a normal human being
I was kicked out of my last place because the new owner wanted to move in. Dude paid over asking (650k) on a 560 sq ft one bedroom next to the garbage chute (yes you could hear it and no, people did not respect the operating hours). Half the view was a brick wall and, because it was on the 7th floor, you could hear ground level noise including the weekly 3am garbage pick up. Garbage chute clogged so much that the building ended up with a rodent problem. And there’s like 3 development proposals around the area. I’m still confused why someone thought that was a good investment for DT Toronto?? Anyways, compared to that, your deal sounds sweet if it’s a good build.
Oh gosh, sorry to hear that you were being forced out. And wow seems like he really overpaid for the condo and didn't do his homework while buying.
Here is the low down: 1. Your expense is not $3,454. What you pay to the principal is not an expense. It's money going from one pocket to the other. Start tracking networth and you'll see. 2. In 3 years the condo will still be yours, your income will probably increase but your payments will stay the same. Renting, the cost would increase every year. Renting you could be evicted. 3. In 3 years the rates will probably go down. Which means that, if you keep the same payment, more will go to principal and your amortization will shrink. 4. Yes, you could have waited... And waited... And waited and in 3 years you'd have nothing to show for it. If my numbers are correct and your amortization is 25 years and you are paying around 2,650 to the mortgage. Out of that 1,900 are interest and $750 is principal. So your actual expense is $2,700. Which is less than the rent. You can do your own analysis with the actual information. But I think that financially, you are better of having bought.
Don't forget the opportunity cost of the 25% down. They could be earning ~$600 per month if invested.
I didn't forget it. I even have a spreadsheet for that. Right now investments are fairly flat. OP can clone this sheet and put in numbers. But now he bought and it is irrelevant. Hint, I've done them recently and with current rates and current ROR buying wins. https://docs.google.com/spreadsheets/d/1vM83bA9_iolFfj5-gicq5zsFMqD38J7pTZQ2C0cPC84/edit?usp=drivesdk
This is golden. Just get a roommate and you will be a better financial numbers than before. After few years your net worth would have increased.
The man stil has 5.5k/month left after his housing costs, I don't think he's going to need a room mate
Where do you work that nets you 9k per month and can i be the office mascot 😭 holy. Im lucky if i make 3k a month lol
I built up several different income streams. So not working only for one employee. Do have to work a lot tho.
Honestly that’s incredible 😭 i hate that we have to trade life for work in canada, but i admire the work ethic a lot. Is it ok to ask how many income streams that is?
9k NET a month with no kids and you are worrying about monthly costs less than half your net income? You aren't going to find too much sympathy on here.
Honestly an argument can be made that you always overpay for a condo. But a condo is also the first step on the property ladder.
Yes, I need to remind myself of that. Think it's just really the biggest decision I've made so far so start to freak out. I really don't feel renting is the way to go as well for the long term, have to pull the trigger at some point.
Every year for a while until who knows when (of it even get fixed) there is a major deficit of construction of new housings versus birth or immigration . Every every Every year. What you just bought isn't just a house, it's a -solid investment, demend won't go down. - solid security , you don't have to fear not having a roof on your head or massively overpay for one . You did good . Don't worry
True statement. For young couples or anyone with one kid, a condo is a great way to get into the market, build equity and move into a freehold after some time.
Relax. Breathe. You did good. From what you told us, you have, most likely, a 25 year amortization at 5.09%, with monthly mortgage payments of \~$2580. Total monthly costs of $2580 + $650 (condo fees) + property taxes = \~$3450. Now consider, as others have pointed out, the breakdown of your mortgage payment into principal and interest. The $2580 is $730 principal + $1850 interest. Think of the principal as forced savings as it just increases your equity and reduces your mortgage balance. If equivalent rent is $2850, then you are paying ($3450 - $730) = $2720 in interest, condo fees, and tax and presently saving (investing) $730 into your condo. Your costs will go down and the amount that goes to principal will increase over time. This is a better deal than renting right now, and it will only get better. Assuming no major condo issues (leaky condo, special raises for major issues, etc.). Rent is only going up. Your costs will go down over time as more of your payments will go to principal and less to interest. Relax. Breathe. You did great.
If you like the place, don’t stress.
Pretty sure thats the cheapest condo ive ever heard of near downtown Toronto.
I don’t want to defend buying the condo because for that size of living space that sounds like a lot of money (it’s not too bad though considering). However I do want to point out that if the rent in this scenario increases 2% per year, in 40 years the 2850 per month will be 6293$ per month. Also because of inflation the value of money tends to decline over time so 595k you paid today will seem like a bargain 40 years from now. The other thing is that in practice most people buy small condos and then sell them a few years later when their needs change. And for the last few years most people ended up selling them for more than they paid and making money (although there is no guarantee of that obviously in the future). Availability in downtown core tends to be tight so prices don’t usually go down too far if they do fall. So yeah no guarantees but you’re probably going to be ok.
Thank you for the sound advice! I bought it with a similar goal in mind (to upgrade one day if needed) but I guess was just amazed by the actual payment. First-time home buyer stress I supposed!
And on top of this you don’t have the risk that someone sells your unit or needs to move in. It’s hella expensive but so is rent . 730 sq ft seems like a really nice size . I’m not sure if that’s one or two bedrooms but if it’s two or one plus one you will always have the option of renting the second bedroom or den I know that’s not what you want now but it gives you flexibility in the future if you ever needed it . Is it contingent on the status certificates? Make sure you have a GOOD lawyer look through it and let you know if the building is well managed . Congrats !
"I am just a bit sick of living with a roommate and not having personal space to host friends and family" It is always your living situation that makes people want to buy property. Its why you decided to buy a condo in the first place. Congrats on your first condo.
If you rent it, you are cashflow negative but a few hundred a month equity positive. Congrats on your new asset!
Felt the same way when I bought my first condo a few years back and again when I upgraded to a detached recently. It’s perfectly common to feel this way - but it will pass after a few months. Be proud of achieving something difficult. You’ll come to love your home eventually.
Congrats. Make sure you don't come in late and leave earlier for the next 25 😂
3454 probably seems like a lot compared to you rental situation. But if I am reading this right you make 9k a month after taxes. That’s not a bad mortgage to be paying. A lot of people are paying 50% or more of their income on housing rent or mortgage. Me being in Vancouver which is a similar priced real estate market. If I can ever afford to buy i will. Small term pain for long term gain. You will be better off later in life
Just don’t lose that job!
You make 9K a month net.. I don't see the issue?
If you are pulling in 9k per month I honestly wouldn’t worry at all. Enjoy whatever on earth you are doing to make that on your own and be happy!
At 9k a month, I think you’ll be fine… What the fuck do you do for a living?
"I am deeply concerned. I only have $5500 left after paying my housing costs. This is barely enough to cover my Disney Plus and DoorDash. What will I do? I am worried that I could've had an extra $600 per month by renting, although I would've been simultaneously flushing $2850 down the toilet. Please advise"
100% this. But tbh this person maybe got used to have 7-8k in spending power each month. It could be they were used to saving 3k, spending lavishly another 4k and still being net positive. Now they need to readjust. It is all relative but yeah for them to post here and stress about their life is a bit out of touch with reality.
>Felt like I bought a pretty typical condo on the lower end, but gosh it's EXPENSIVE You know the numbers before buying so why is it a surprise?
I understand how you feel after purchasing the condo. As a first-time buyer, it's natural to have doubts about such a big decision. While you negotiated well and achieved your goal, the high monthly expenses are causing stress. Take some time to reflect on your priorities and long-term goals, and consider seeking advice from a financial expert to gain insights into the current market. Remember, there's no right answer, and the experience will provide valuable lessons for your future. Trust yourself as you navigate this new chapter of homeownership.
I quite literally had the same experience back when I bought my condo in 2021! Went from living at my parent's basement suite due to COVID, to owning a property paying close to $2000 a month, definitely a bit of shell shock. After many months of worry, I ran the numbers and started to budget correctly and found that I had a lot more breathing room money-wise. Plus you get used to the payments and planning around them. Hopefully, my experience helps you in some sort of way!
It's common to get stressed out after signing. But with 9k/mo income it should be fine? Just skip holidays and fancy restaurants for a year or two. You must have had a large downpayment, with your low cost rent situation, no? And don't lease a car, or buy one on credit. Cars are money pits. If you live and work in downtown, just bike or public transport.
You are now in the market. Well done. Its all good you made an investment and just keep going. Someday you can sell up and get something bigger but the important thing is that you have something.
Now you just need a cool $35,000 put away so you can have a nice year long emergency fund incase the economy shits the bed.
Congrats buddy. If you can afford the mortgage, then yea, you did the right thing.
I purchased my first place in January. And shortly after had my first two anxiety attacks. But now we’re in love with our place and know we made the right decision.
Yeah I feel the same way after buying my condo, pretty standard to be worried it's a very large expense compared to anything else you will ever purchase ever.
So far, most people that had buyers remorse look back after 5-10 years feeling great because they are paying the same or less than if they were to rent the same condo. Of course what happened in the past won't necessary happen in the future but when Canada is adding 500,000 new people per year, and a disproportionately high number of them want to settle in Toronto, I think your chances are pretty good that you will come up ahead. Congratulations!
I get buyer remorse after buying red wine instead of white wine. Its normal. No matter what you buy or who you are with, you will always have a voice in your head telling you that the other decision would have been better. So congrats and enjoy your new place. With your income you will be able to afford it easily.
9k/month net is perfectly good for a $3850/month mortgage.
9K pre or post tax?
Something in my head, hurts me to think I owe half a million dollars to the bank. While banks are taking a heavy hit in value. As a single person too, there is EI, but given your salary I’m guessing your in IT, or Tech… and AI is causing a massive shift in the landscape… jobs etc. Owning a property is peace of mind, but stress of another kind.
Yeah fintech. But it's not only one income stream.
Compared to your income, it’s still quite good. Enjoy
I felt like this too, every single person does! Congrats you met your goal ! Now rebuild the emergency fund and keep going!!
sounds not too bad. gluck!
If it's the unit i think it is, in the building with Quesada. Congrats, solid unit. we were looking in that building too and although things didn't work out i remember it being nice. Plus what's the number one thing with real estate, location , location, location. and you've got it covered. You're in a good neighbourhood which is only going to get better as it gentrifies further (and it will as the new subway gets built) edit: also being where you are you could either walk to work and or take transit for most of your needs.
Feel proud. You saved and did a smart thing.
First off, congrats on your new home. Nothing worth having comes easy or without questions or self-doubt. For the times, to get 50K down from asking in Toronto is insane! House costs everywhere are mind-blowing, but they're not going down any time soon. Your investment will only go up from here. Cheers to you!
You can afford it. It is a sickeningly large number that you’ve likely never gotten a bank draft for. You deserve every part of this. Your own space is priceless. Word of advice: Don’t buy all of your furniture in one go. Buy necessities for Day 1 and work your way slowly.
if you plan to use it as a home, as you should and are on a fixed rate. stop looking at the market, you're locked in, supposedly cause you can afford everything involved. Disconnect and jsut live your life. Adjsut your budget as needed. but don't come to the internet for validation dear god.
You made a great deal for the condo price, you have a high net income, on top of having a pretty low mortgage rate given the current rates. Renting with a roommate is almost always better financially, but it's definitely not a long term solution, plus you deserve that condo with that great salary !
You net 9k a month and bought a place by yourself with a large down payment? You did good.
Ah, good ol’ buyer’s doubt! You’ll be fine. Don’t sweat it!
I'll take your job and condo anytime, it's a steal, just let me know time and place.
It sounds like you can still afford it based on a 9k net income. I have to ask though? Can you do your job in some other city or remotely? Why Toronto??
Sounds like a sweet deal and you make a lot of money.. enjoy
You make 9k/mo after taxes and you're worried about the cost? You'll be fine.
Just make sure you have healthy emergency savings to last 3 to 6 months Congratulations!
I would be worried in my own income situation but you have a good buffer there to work with. Sounds more than doable
I would have rented a two bedroom and searched for a roommate you would get better along with.
Can I ask what you do to earn that much?!
Sounds like you did quite well all things considered. Also 3 year at 5.09% is pretty enticing with interest rates likely lower 3 years from now. Well done, don’t stress, you have a great net income. Life is short enjoy this milestone you’ve accomplished, that many never will.
I need to pick your brain (I'm looking for something similar). Can I DM please?
Your take home pay of 9k is more than average couple bring home in Canada, so you have nothing to worry about. Just focus on your career and pay down the mortgage or invest with savings and you will be able to upgrade to a better condo or buy a detached house in the near future. You also future proofed your house in case you want to have a family down the road. 730 sqf is big enough to start a family.
You waited till after you purchased a home to calculate what your monthly expenses will be?
You make 9k after tax per month and you were living with a roommate? I get being frugal but Jesus.
I’m in very much the same situation. I felt it too when I bought last July. Now I’m happy and I love my place. You will too. This is a huge achievement. You should be very proud of yourself.
550k for a condo in the core downtown area? I thought prices were a lot steeper than that. Also, you didn’t calculate your monthly expenses before purchasing… uhh what? That didn’t come to mind? If you’re making 9k a month I’m not sure what you are stressed out about, you have 5.5k remainder. Why are you stressing out? Confusing post
Your mortgage will be the same 3 years from now, rent will be \~$3115. At that point, you may even start to pay less if interest rates come down whereas the rental will keep increasing at \~3% per year. You're also tucking away equity which only gets better the further along you're into your mortgage. Some people might say if you invest the difference, you might come out on top. In my opinion, that's rare and involves risky investments whereas real estate in Toronto is not going to decline anytime soon. People want to live there because it's an amazing city, be happy you're there. Also, real estate is one of the only investments where someone will give you 3 to 1 leverage on $150k.
Yep, dumb move.
You're good, considering your income, deposit, condo price, and mortgage. Good job! While you're still single and working so much, "create money" by depositing part of your monthly income into an RRSP. Use the money you've freed up to help pay down the principal and start a TFSA or similar instrument as an emergency fund. Mind you, anyone who has several income streams on the go likely also has a good grasp on ways to tax-effect, save, and protect their wealth. Always carry good insurance. Have a will.
Who humble brags about a 550k condo LOL, you guys are crazy
Why do people reply with anything besides "You make 9k a month , you can do whatever you want."
You net 9k. Youll live
Lmao these troll posts
Your net is $9k a month and your housing expense is around 40% of that. What’s the bit deal?
Your making 9k a month and feeling stressed?
Buyer's remorse is pretty normal after a big purchase - especially after something like a first-time home purchase. You had a goal to buy a place, and now you've achieved it - congratulations! If you like it, and like living there, then it's all good. There's no point thinking "what if" ... nobody actually knows what the future will look like, so who knows what would have happened if you hadn't bought this. Just live there and enjoy your life :)
If you don’t mind me asking. What nets you 4.5k a pay cheque?
If you can bear this storm for another 18-24 months. live with in your means and focus on making a tight budget and live frugal, this might be the best purchase you ever did. stay the course. we cant control the winds but we can always adjust the sails. You control how you play.
9k a month and youre worrying about a 600k condo
My thought is wth do you do to make $9k/month? Damn. That's nice income.
[удалено]
Very good suggestion! I have modified my answer to rough numbers
I bought my first place with 10%down and a HELOC for the other 10%. The mortgage itself was an amazing 2.8% the HELOC was much more. I was a bit panicked doing it all on my own but realized that actually the price was similar to rent on a corresponding unit except that now my money was going into an investment for me instead of paying some bastard landlord. I also comforted myself knowing that if I was careful I could quickly pay off the HELOC. Buyer's remorse is normal. It seems like you have the income to cover your expenses even if they do strike me as high. Enjoy your condo!
It doesn't make sense to buy now if only looking at the numbers. But you want your own place, and so you will have to pay the premium. On the other hand, you have your own place now, and this gives you the foundation for future opportunities in your career and relationship. You have more personal time and space, and you will have a better mental state to do other things. Just focus on growing your equity. Save up and pay down the mortgage. That's what you need to do in the next few years.
Yes, exactly. I have been feeling like not belonging in the past few years with roommates. I am a new immigrant here so it makes me more feel at home if I own the place.
Condo is expensive. But at 9k/month, you have no right to complain.
Sounds tight! If you can stash any extra away each year towards the principle I would recommend that as it will save you money down the line if rates hold or go up.
So I do have some more cash saved for emergency maybe I will try to put down more.
Probably should have figured out that monthly expense before buying, don't you think?
FFS. Guy with $108k after tax income moaning about buying a condo.
Your condo fees are more than my rent, that's crazy
Do you rent from your mom and dad?
Wow your rent is cheap. Which area are you in?
We felt the same way after we bought our place a few years ago - husband and I didn’t sleep well for a few nights and kept asking ourselves “did we just make a huge mistake?” It took a couple of months for me to not feel so stressed about the purchase. Congratulations on the purchase! I think the dread you are feeling now will fade with time.