Saving For Condo Down-payment and Not Buying Car - Am I On Right Track ? - Page 2
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Thread: Saving For Condo Down-payment and Not Buying Car - Am I On Right Track ?

  1. #11
    Senior Member
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    Nov 2015
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    396
    Quote Originally Posted by Gujju View Post
    I think it as if I am paying $1200 per month for rent or $1200 per month for mortgage, at-least I am slowly owning a real estate in 2nd case.

    House prices are not in my reach currently and I don't think so they will be in my reach even after 6-7 years. I get your point about owning the land. Do you think I should hold longer and may be go for a small freehold townhouse instead of going for condo ? I am not sure even if I wait for 4-5 years, I would be able to save for 20% downpayment for freehold townhouse.

    Thanks!
    The problem is, it's not $1,200K rent vs $1,200K mortgage, it's rent vs (mortgage payment + property taxes + maintenance fee + difference in utilities if any of yours included right now + higher insurance, though condo insurance is still pretty cheap) relative to home insurance)


  2. #12
    Senior Member
    Join Date
    Apr 2009
    Posts
    319
    I'm not sure whether a condo is a great investment (that's a decision you should make closer to the date), but greatjob on saving money and planning ahead.

    When I was starting to plan on buy a property I tried to figure out my costs, mortgage, insurance, maintence, etc. I then set aside that amount into a bank account for savings. You'd obvioulsy take out of that amount the rent you pay.

    The great thing about this was a) it allowed me to save more than I would normally and b) when I did buy a place I knew I could 'afford' to live how I wanted.

    If you are waiting a few years to save money you can figure out what you like, where you want to live in the city etc. My biggest suggestion would be to save as much as you can (while still living a fun life) so that you'll have lots of options when you do decide.

  3. #13
    Member
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    Feb 2017
    Location
    EDM, Alberta
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    32
    24 and same $ situation, and also deciding what to do. My needle seems to be on the rent side right now a) don't want to be tied down by a "property" just yet b) still have things to sort out with career, etc. c) lots of garbage properties out there I've found so far for my budget, and I don't want to rush into something just because I can afford it right now.

    I'm beating the proverbial dead horse over and over in my own head about renting VS owning, and with either scenario I don't feel I'd be getting "ahead". I've read a lot on forums about RE and while it's mostly GTA and other hot major Canadian cities, a lot of people like on here are knowledgeable and give very good advice that I've been able to form my own conclusions for myself and my situation.

    Definitely wish I had saved more, I would have a solid $50k by now. On the other flip of the coin, people would say they wished they had "lived" their life "better" or YOLO.

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  5. #14
    Junior Member
    Join Date
    Mar 2017
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    21
    $1200 a month won't get you very far with paying off any piece of real estate in Toronto. Unless you're looking at kipling and Dixon.

    purchase price $180,000
    20% down : 36K
    land transfer tax for 1st timer: $0
    interest rate ( all time low) 2.7%
    taxes $1600
    condo fees (yearly) $4800

    monthly payment $1192

    i'd stick with the $300/month rental and look into mawer funds.
    real estate is tricky right now.

  6. #15
    Member
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    Apr 2016
    Location
    Barrie
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    77
    I was in a similar situation and what I did was moved to Barrie. Had I stayed in Toronto I would have been limited to a condo but in Barrie I could afford a house.

    You mention you have a long commute - isn't the whole point of living in Toronto to avoid having to commute? You could live in Barrie (or Hamilton or Kitchener or Peterborough) and commute to Toronto by Go Train. Or better yet find a job outside Toronto.

  7. #16
    Senior Member
    Join Date
    Mar 2012
    Posts
    3,657
    If you're going to buy a condo, make sure you take the extra step and join the condo board. Many people spend hundreds of thousands of dollars on a condo, then abdicate the control of that investment for others to run for the better or, more often, the worst.
    I'm not JustAGuy (without spaces), or Donald, or <insert name here>.

  8. #17
    Senior Member
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    Sep 2016
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    549
    I heard that if someone buys a condo to rent out in Toronto they will lose money. If that is true better off to rent

  9. #18
    Senior Member
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    Sep 2016
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    549
    Buy mobile home trailer in mobile home park is another cheap option till home prices drop & you get more established. On financial survival network last week interview an owner of 18 mobile parks said rent was $300 a month

  10. #19
    Senior Member My Own Advisor's Avatar
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    Sep 2012
    Location
    Ottawa
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    4,920
    "Thus, I thought it would be better to save as much as possible for Condo Down-Payment which would be $60k (20% of $300k) and try to own it. I know condo will have very high maintenance fees but I am not in a position to save for house down payment which could be at-least $120k-150k (20% of 600k-750k)."

    Agreed, $60K is a pretty good downpayment. Definitely 20-25% is something to strive for.

    Hidden Content - Working on a $1 million portfolio and $30k per year from it.

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