Quote:
Originally Posted by nah
You mentioned that they're looking to have kids soon. Have they thought how they're going to pay the mortgage when one of them goes on maternity leave for a year? The max income is $537 or $30,000 a year.
I don't know, the numbers don't make sense to me. Earning $100k and buying a $1.5M house, there's something missing, like an inheritance of some sort.  |
Most public sector workers get a top-up payment while on maternity/parental leave. In some cases, organizations will top up payments to 100% of their pre-leave salary.
After year 1, they will likely have child care from their parents which is a significant tax-free benefit.
Quote:
Originally Posted by 4444
hang on a minute. are you saying the amount of debt someone takes on is irrelevant?
In the very short term, you are correct, but mortgages are usually 25-30 year debts - that's a long time to suggest debt amount (akin to purchase price) is irrelevant
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One could argue that buying housing in this market is almost a hedge on security of tenure at this point. The rental market has changed since you've been in town - owner/landlords are selling because the returns are at historical highs. The investors who are buying in their place are simply forcing existing tenants out by flouting the regulations in the RTA. Reasonable, legal housing at reasonable prices in the rental market is increasingly difficult to find. Lots of people are thinking the same thing - sell, invest the difference, and rent.
The couple in question has relative security of employment and the security that their parents are likely going to downsize and help them out if shit really hits the fan.