Rising costs of living, how are you dealing with it?

[nns]

Firstly, I'd like to say this is a serious topic, so serious responses only please.

With the rising costs of living, how are some of you handling it? I'm sure there are a lot of 20-somethings in here who live in the GVRD, notorious for it's high cost of living. With your salary, how do you guys manage to plan for the future? Do you see yourselves moving out of the lower mainland? Are you contemplating changing professions just to increase your income? Is renting a place in your foreseeable future, or is buying in your horizon? If you plan on buying, how are you accomplishing that?

I guess I'll start with my details,
Age: 20s
Annual income: in the 40s
Field of employment: telecommunications, full-time
Where do you live? South Vancouver.
Single/couple/married? Single.
Renting/own? Rent paid to my mom, and I pay my own general expenses (car, cell, etc).
Investments: none

My current situation:
I would absolutely like to own my own place. Preferably an apartment in Vancouver. Although I've saved up a good amount of money, I'm nowhere near enough to buy my own place. Renting is my only choice. I find myself looking at jobs that may not make me very happy in the long term, but would pay a lot more than what I make now just to help me achieve my goal of owning my own property. I'm someone who always wants to achieve more with my sight set high. I feel my personal development has stalled and is constrained due to my income.

If you guys could share how you're doing it all, what sort of plans you've got, etc. I'm making this post because I want to get some honest insight. For you guys who were in this situation before, but over came it, how did you do it?

[punkwax]

Bro. No offense. @ 40k per year you aren't buying anything in Vancouver proper. You either have to look at the burbs or wait until you start making some decent coin... you're still young so time is on your side.

[TurboFC3S]

If your living @ home you got nothing to worry about especially if your parents aren't pressuring you to move out... Living @ home and saving for a apartment is E-A-S-Y ... Just live at home as long as possible and if your serious about getting a apartment put 60% of your paycheques in TFSA or savings if that's maxed, and don't spend money on dumb things. Then put a downpayment on a apartment that's not built yet and you could even rent it out for a while once its done to pay off some of the morgage..

You can always keep trying to upgrade your job too nothing wrong with that.. Since your in telecom sector you may want to consider switching to union side if your non union. That way you won't have to start a new career.

I'm 23 and renting on my own but I'm a good saver / money manager for myself.. I have a union job and I just never let myself get into debt and keep most my money in my TFSA / savings account so I can't see it / touch it too easily I could have easily put a downpayment on a apartment but I want a HOUSE.. Need a big garage for all my toys
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[wouwou]

I will be 30 by the end of this year. I spent two years in HK doing horrible hours, and the way to deal with GVRD cost of living?

I move the fuck away to Ontario.
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[nns]

Ok, maybe I should clarify. I don't want to live at home. I want to aim towards getting out of here. Hence why I made this post, to see what sort of options there are. Yes, living at home and saving is an option. However, I'd like to pursue other avenues if they are available. Avenues that maybe I haven't thought of. Some people are cool with slumming it at home well into their 20s/30s - me, not at all.

But thanks TurboFC3S, your reply is the type of posts I'm looking for. I don't know much about TFSA, but I'll definitely look more into it now.

[TheKingdom2000]

This is a tough call as i'm sure you LOVE Vancouver as much as I do. But, I think it might be a good option for you to move somewhere else.
ie. up north and get dirty to make a lot of cash. There is a thread on it somewhere on RS. Do that for a couple years and you'll save up enough cash to rent an apartment and then reapply to a telecom job after that.

Or go to Alberta or Onterrible to get a job that pays more. Save up and then move back.

If you can deal with that then I honestly think that is the best idea.
Vancouver is just not affordable for anyone right now. Especially since our job market is terrible.

You're young so moving away for a couple years may not seem like a bad idea. Giving it a shot now might make all the difference later on. Especially since you're single.

I think you should seriously think about moving away for just a little while and see how it goes. Honestly, Toronto isn't that bad. I prefer Vancouver obviously, but Toronto is a pretty amazing city.

[AWDTurboLuvr]

So, your end goal is to buy property in the next 3-5 years? (What are your approx. savings?)

As someone who did what you wanted to do in my early 20's, if I didn't make as much money as I did off the skyrocketing property values, I probably would go back in time and not make that purchase. I would rather have the luxury of being able to have travelled more when I was younger and have an easier way of moving to different jobs abroad, instead of having to take care of property back home.

What I'm trying to say is that, I believe personal growth in your early years, are much more important than buying a condo/house at that point in time.

However, if you are hell-bent on trying to buy a house, like what turbo said, invest/save in a TFSA and yeah, I would consider taking an extra job or a different one to make more money. Do you parents have any savings? You could always lump some together for a larger initial investment.

BTW, do you feel like you just want to move out? Renting is a waaay better option than the current housing situation...I'm jettisoning my rental unit right now.

[Narayan]

Maybe look at moving farther out? Fraser Valley has some good starting points for your first home... I.e. Langley and Abbotsford.

I live in Langley and there is a new condo development going up in the heart of town that starts at around 190,000. With 5% down your mtg payment would be under $800 per month to own your own place.

You may have your heart set on Vancouver but I think there maybe better options for you?

I'm 30 make just over 70M a year and have 3 kids with my wife working part time. We own our own house and get by just fine... If anything someone in my life stage should be bitching about cost of living trying to support a family of 5 with my food bill reaching over 1000-1200 per month, kids in numeros activities etc.... hahahahha

If you're in your early 20's making 40+ a year you should be proud man... you're ahead of the curve.

[dinosaur]

How am I dealing with it?

I bitch about it and talk about moving....but I won't because there is really nowhere to go.

Such is life.

[EmperorIS]

move to the burbs get ur self a nice car and enjoy the commute

[yot065]

age 20s :'(
annual income 20K<
location east side yooo lulz
single and ready to mingle
live with my mommy :'(
investments: school for a brighter future :'(

[top_dyl]

wait it out for another few years live at home and ask daddy to put a down payment for you and pay your mortgages.

by living at home, you're essentially saving 40k every year. If you move out making 40k on a job that's like working for nothing

if your parents make 500k or so yearly before taxes, a year or two of waiting is like another million without ever really working!

[Bonka]

Originally Posted by top_dyl

wait it out for another few years live at home and ask daddy to put a down payment for you and pay your mortgages.

by living at home, you're essentially saving 40k every year. If you move out making 40k on a job that's like working for nothing

if your parents make 500k or so yearly before taxes, a year or two of waiting is like another million without ever really working!

Get your own shit together first. You should be the last person to give advice in regards to finances.

Just saying

[Slifer]

Originally Posted by top_dyl

wait it out for another few years live at home and ask daddy to put a down payment for you and pay your mortgages.

by living at home, you're essentially saving 40k every year. If you move out making 40k on a job that's like working for nothing

if your parents make 500k or so yearly before taxes, a year or two of waiting is like another million without ever really working!

[niu99]

.

[bballguy]

^
this guy a lil' mad at asians right now...

[Iceman-19]

Is everyone too gay to follow the formula?

Age: late 20s
Annual income: 120k+
Field of employment: Heavy duty equipment maintenance
Where do you live? Coquitlam
Single/couple/married? Single.
Renting/own? Rent a room from a friend
Investments: stocks, small tfsa saved, a bit in an rrsp.

I'm in the same boat as OP. I rent because I can't justify paying a large rent payment when I'm gone most of the month. I want to buy ASAP. Where are those condos for 190k? Might look into that when I get home next week.

To OP, not sure what field of telecoms you are in (you could sell cell phone accessories for all we know), you want a house bad, look for work up north. You could guarentee to double your current yearly wage immediately. If you want to get a head start, it's what I suggest. It's tough to fathom going back to work for real world money after though, I'll warn you now....
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[MindBomber]

Originally Posted by Narayan

Maybe look at moving farther out? Fraser Valley has some good starting points for your first home... I.e. Langley and Abbotsford.

I live in Langley and there is a new condo development going up in the heart of town that starts at around 190,000. With 5% down your mtg payment would be under $800 per month to own your own place.

You may have your heart set on Vancouver but I think there maybe better options for you?

I'm 30 make just over 70M a year and have 3 kids with my wife working part time. We own our own house and get by just fine... If anything someone in my life stage should be bitching about cost of living trying to support a family of 5 with my food bill reaching over 1000-1200 per month, kids in numeros activities etc.... hahahahha

If you're in your early 20's making 40+ a year you should be proud man... you're ahead of the curve.

Good advice.

People view Abbotsford, Langley, Surrey as some sort of major step back in life. People fixate on Newton and Whalley, and look at Surrey as a terrible place to live, not acknowledging White Rock and Morgan Creek. People seem to think living in Abbotsford or Langley would mean they're surrounded with nothing but Christians and farmers, but while the proportions are higher it's not noticeable at all. It's not the sixties, anything East of the Fraser isn't like Hope.

I live here in Abbotsford, before that Langley, I saved $400 a month on rent moving another fifteen minutes East. It doesn't bother me one bit, it's quiet at night, there's less traffic during the day and everything I could want in Vancouver is basically here, especially with the new mall coming soon. I go to Vancouver most weekends, it takes maybe 45 minutes to get DT. The majority of the time, especially as you get older, you only go out on weekends anyway.

Originally Posted by Iceman-19

Is everyone too gay to follow the formula?

Age: late 20s
Annual income: 120k+
Field of employment: Heavy duty equipment maintenance
Where do you live? Coquitlam
Single/couple/married? Single.
Renting/own? Rent a room from a friend
Investments: stocks, small tfsa saved, a bit in an rrsp.

I'm in the same boat as OP. I rent because I can't justify paying a large rent payment when I'm gone most of the month. I want to buy ASAP. Where are those condos for 190k? Might look into that when I get home next week.

To OP, not sure what field of telecoms you are in (you could sell cell phone accessories for all we know), you want a house bad, look for work up north. You could guarentee to double your current yearly wage immediately. If you want to get a head start, it's what I suggest. It's tough to fathom going back to work for real world money after though, I'll warn you now....
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They're really nice actually, decent location too. You get the Langley feel, not the feel you get in the lower priced areas of Surrey.

Five minutes from the highway, Willowbrook mall, Costco and the general urban sprawl. There's a couple new condo buildings in Langley, but these are probably the best.

http://marcon.rtrk.ca/?scid=75420&kw...id=17769827992

[hk20000]

Originally Posted by Iceman-19

Is everyone too gay to follow the formula?

Age: late 20s
Annual income: 120k+
Field of employment: Heavy duty equipment maintenance
Where do you live? Coquitlam
Single/couple/married? Single.
Renting/own? Rent a room from a friend
Investments: stocks, small tfsa saved, a bit in an rrsp.

I'm in the same boat as OP. I rent because I can't justify paying a large rent payment when I'm gone most of the month. I want to buy ASAP. Where are those condos for 190k? Might look into that when I get home next week.
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Condos in Surrey in 190k class are aplenty no joke.

[Iceman-19]

Originally Posted by MindBomber

Good advice.

People view Abbotsford, Langley, Surrey as some sort of major step back in life. People fixate on Newton and Whalley, and look at Surrey as a terrible place to live, not acknowledging White Rock and Morgan Creek. People seem to think living in Abbotsford or Langley would mean they're surrounded with nothing but Christians and farmers, but while the proportions are higher it's not noticeable at all. It's not the sixties, anything East of the Fraser isn't like Hope.

I live here in Abbotsford, before that Langley, I saved $400 a month on rent moving another fifteen minutes East. It doesn't bother me one bit, it's quiet at night, there's less traffic during the day and everything I could want in Vancouver is basically here, especially with the new mall coming soon. I go to Vancouver most weekends, it takes maybe 45 minutes to get DT. The majority of the time, especially as you get older, you only go out on weekends anyway.



They're really nice actually, decent location too. You get the Langley feel, not the feel you get in the lower priced areas of Surrey.

Five minutes from the highway, Willowbrook mall, Costco and the general urban sprawl. There's a couple new condo buildings in Langley, but these are probably the best.

Marcon (Langley,BC)

Nice lookin place, of course every corner unit is sold haha.
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[Slifer]

Originally Posted by Iceman-19

Is everyone too gay to follow the formula?

Age: late 20s
Annual income: 120k+
Field of employment: Heavy duty equipment maintenance
Where do you live? Coquitlam
Single/couple/married? Single.
Renting/own? Rent a room from a friend
Investments: stocks, small tfsa saved, a bit in an rrsp.

I'm in the same boat as OP. I rent because I can't justify paying a large rent payment when I'm gone most of the month. I want to buy ASAP. Where are those condos for 190k? Might look into that when I get home next week.

To OP, not sure what field of telecoms you are in (you could sell cell phone accessories for all we know), you want a house bad, look for work up north. You could guarentee to double your current yearly wage immediately. If you want to get a head start, it's what I suggest. It's tough to fathom going back to work for real world money after though, I'll warn you now....
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How much are you paying for rent up at Fort Mac? I assume its fly in/fly out?

[spoon.ek9]

OP it seems like i'm in a similar situation like you except i have some funds in TFSA and RRSP.

if renting at home is what you want to get away from, then look for an affordable place to rent. there are many homeowners that rent out private suites that are part of their homes. i think this is the best compromise as you get some freedom and will continue to save a good amount.

[Iceman-19]

Originally Posted by Slifer

How much are you paying for rent up at Fort Mac? I assume its fly in/fly out?

0, I rent a room in coquitlam.
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[iEatClams]

To the OP:

Why is it a bad thing to rent?
Seriously, I feel as though soo many people feel renting is bad and "wasting" money away. When property prices are soo high, I think it makes sense to rent.

Lets say you have a mortgage of $1,400 a month. The interest portion of that payment is probably $800, with $600 going to equity. You are paying $800 bucks in interest payments to the bank, and $600 is going to the principal/equity in your house. This is the same thing as paying $800 rent, and saving the $600 in a savings or investing account and earning interest on that $600.

With renting you don't have to worry about maintenance/strata fees/property taxes and that's associated with owning a property. Also not to mention the very real risk of a correction in property prices and thus having your property lose it's value.

Also if you are renting you are not tied down to specific location like you would be if you are owning a property. This helps if you get a new job or want to move to a different city etc.

If you don't want to live your parents and you want that freedom and independence, I think this is the way to go.

[TurboFC3S]

Originally Posted by Iceman-19

To OP, not sure what field of telecoms you are in (you could sell cell phone accessories for all we know), you want a house bad, look for work up north. You could guarentee to double your current yearly wage immediately. If you want to get a head start, it's what I suggest. It's tough to fathom going back to work for real world money after though, I'll warn you now....
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Yep thats true.. After the first paycheque your hooked lol. Working out of towns not everybody's cup of tea though I personally love it.

I suppose ill do one of these also..


Age: 23
Annual income: 50k-100k++ (Depends how the year goes)
Field of employment: Industrial union heat & frost insulator
Where do you live? surrey
Single/couple/married? couple
Renting/own? Rent a basement suite
Investments: TFSA, RRSPs, General savings account, pension