Quote:
Originally Posted by westopher
300k with say a 50k down payment (which is a reasonable down payment to expect gets you a 350k apartment. So lets just say for the sake of my breakdowns its a 650 square foot place in fairview.)
1200 for mortgage
280 condo fees
130 in taxes
$1610 total
$1600 would get you more or less the same place for rent
I'm in NO WAY saying that everyone who buys a place has no money other than credit for left over expenses after a mortgage. I have no idea how you could have taken that from what I said. I'm saying when people max out what mortgages they can get approved for in an income bracket that allows them into entry level condo ownership in this city, when you add up:
food
mortgage
condo fees
taxes
car
insurance
gas
We are now getting dangerously close to taking up ALL of this hypothetical new homeowners budget. Being that almost anyone thinks they are entitled to that $3000 vacation per year and eating at nice restaurants a few times every week. We are talking all of those things going on credit. I'm not talking about mathematical equations here. I'm talking about observations on how people in this city really work.
I'm interested in hearing how much needed to be put down for you to have a 1200 dollar mortgage to have a place that would cost 2400 a month to rent. 2400 a month in this city can get you quite a nice place. Also, a mortgage is not your only cost of that home ownership. Taxes, and condo fees should be included in that cost of living that would add to your mortgage payment when comparing to rent.
I'm not saying you are better off either way, as I don't know your situation, but I'm replacing you in your housing situation with the average new homeowner in this city.
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I'm interested in UFO's numbers, if he feels comfortable sharing, is because what he says seems like close to what we are looking at right now. Granted he has said 30 years, so he might have gotten the mortgage before they tightened it down to 25 years. They might have also bought a $500k unit which puts them at a better position loan-to-value wise and a better interest rate. $1200 a month definitely won't be renting you a 500k apartment that's for sure and he has a decent case for buying. But that also furthers my point of not buying until you have 40% down.
I am looking to borrow $225k on a $300k condo. Its just under $1100 a month for mortgage, not including strata fees ($224/m), property taxes ($170/m), mortgage insurance, home owners insurance, and utilities. Let's say we discount the utilities part, I am still looking at $1500 a month all said and done for a 688sqft 1 bedroom 1 den that I can rent for $1200.
Granted, this is based on a comfortable level of spending. We aren't sacrificing any luxuries in our lifestyle, if we cut back a bit I am sure we can contribute a fair amount towards the principle.