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Originally Posted by westopher
Do you have more savings you’d put into the down payment? That just seems very tight to me.
We have about 300k equity in our condo. Our household income is just shy of 200k. No day care, no debt, no kids. We are trying to save quite aggressively as this income is pretty new to us, and money was tight before.
I couldn’t imagine taking on more than a 5-600k mortgage, but I’m pretty risk averse, also we like to take lots of trips over the course of a year, albeit small ones. Budgeting tightly like that is really scary to me, as things pop up, people move jobs, need time off for a multitude of reasons. I understand peoples priorities are different however, but I just can’t make those sacrifices for an address without a unit number in front of it. If we worked from home, or could I think my thinking would be different.
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We have another 20k or so of rainy fund lying around. Otherwise everything went into the mortgage. Honestly unless you have 6 figures just lying around doing nothing, it's not going to make much of a dent on a 7 figure home.
Is 10k a year of surplus too tight for you? 10k surplus is something like 18k pre-tax income.
We took lots of trips before too, covid and a young child kind of makes that impossible. We don't foresee really being able to travel again until early 2022.
People do move jobs, but moving jobs for both of us would only be up unless tech takes a massive shit(doubt it). Wife took a sizable paycut for her current job because of a career move and also for flexibility. Our 200k right now can probably be 250k in 5 years or so.
Your last line really hammered it home. We both work from home and we are feeling the space crunch. Things are a little better now that the little one is at daycare, but the little guy easily takes up more space that both of us combined.
The other financial things are really about even in terms of property tax and insurance and strata fees.
The big benefits we are looking for is a) having a yard, b) having a garage, c) more privacy.
Like some one else posted here, our parents sucked it up and only travelled once every 3 years or so, drove a base Dodge Caravan, and we ate cheap so they can afford a house. Obviously times are different, but we have two BMWs, we live well. Sucking it up and tightening it a little doesn't seem like such a bad tradeoff.
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Originally Posted by is350
^to hoard all the junk lmao.
Seriously though, to provide your children with more wealth when you pass it down. Or even if you don't have children, you will retain more $$$ when you are in your elderly ages, and you can downgrade to a condo and use the extra $ for what you need.
My parents realized that the condo that they bought back in mid 2000s (was around 230k at the time) is only worth 370k-400k recently, meanwhile a house that they could had bought in East Van at the time (420k) was just sold for 1.7m at the end of 2020. Thankfully they bought a couple years ago, the mortgage has been stressful and they don't have a lot of extra $ to spend on themselves, but that goes for a lot of immigrant families.
And to all the car enthusiast on here, who doesn't wish you can park multiple cars in your own garage and on your own driveaway, and best of all, wash and detail your cars on your driveaway as well
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The garage want is real. The bit about parking wealth is also real. We are risk averse in terms of investments. This is a slow but safe place to park our money. I don't see the same kind of insane gain we saw in the last 20 years, but hey who knows, no one saw those gains coming either.
We went through the whole "we have space and we'll fill up that space with shit" ordeal already. I think we are done with accumulating junk. If anything we are getting rid of junk.