Posted on: 11-01-08 09:46:32
Hi CDs,
I need your comments. I am 2.5 yr old immigrant. My spouse has job of 40000 and i am still struggling for a good permenent job. I can afford 10% down payment if I buy house up to 300,000. Do any body has experience what will be monthly expenses in house? I am paying $865 rent in apartment. Are OLD houses give appreciation?
Thanks in advance
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એક જ ટીપામાં હો જાણે સાત સમંદર,
એવા ઝંઝાવાત હજુ હૈયાની અંદર
Quote:
Originally posted by love_n_peace
Hi CDs,
I need your comments. I am 2.5 yr old immigrant. My spouse has job of 40000 and i am still struggling for a good permenent job. I can afford 10% down payment if I buy house up to 300,000. Do any body has experience what will be monthly expenses in house? I am paying $865 rent in apartment. Are OLD houses give appreciation?
Thanks in advance
In condo townhouse
@ 1500/month Mortgage and Brampton city tax
@ 250/month Hydro, water, Gas and condo townhouse maintenance (Average total year)
@ 300-500/month for grocery (2 adult, 2 kids)
@ 115 $/month one car insurance.
+ Extra as per your life style
Our other friends can add some points!
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"First they ignore you, then they laugh at you, then they fight you, then you win" - Mahatma Gandhi
With a 40K salaray, you may not qualify for a 300K house with 10% down in the first place. Talk to some mortgage consultant and see your borrowing limits. If you can't get the mortgage approved, may be all these exercises might go waste!
Quote:
Originally posted by love_n_peace
Hi CDs,
I need your comments. I am 2.5 yr old immigrant. My spouse has job of 40000 and i am still struggling for a good permenent job. I can afford 10% down payment if I buy house up to 300,000. Do any body has experience what will be monthly expenses in house? I am paying $865 rent in apartment. Are OLD houses give appreciation?
Thanks in advance
Hi,
Let me share my thoughts. As you have mentioned that you are still struggling, I would still advice you to hold on. Buying a house means not only the mortgage but a birth to many other heads, such as tax, home insurance, home protection plan, hydro, water, gas, security and all the other initial emotional expenses and regular recurring expenses. I strongly feel that if a family has more then 75 K income in Canada, they should think of buying a house. Or, in your case you may still think of buying a house with a separate basement and generate some income through rent. But then you will never be able to enjoy this house and it would never give you the feel of a HOME.
We bought our first home in exactly 19 months from our landing, but let me tell you, the monthly figure shot up so fast that before we could control, we were set to the new feel of owning. A monthly budget of $2000 (just for 2 of us)went up to $5000.
So, I am not trying to discourage you but talk to yourself about the sustainability and whether the right time has come or not. Just that many of our friends have bought, we should also buy, should not be the right thinking.
OR ELSE....
If you are a man of progressive thinking or in Sales, then go ahead. The by-product would be "GROWTH", believe me. I have been always spending first and then earning it and thats how I could reach 6 figures in Canada in just 2 years. PRESSURE MAKE US THINK MORE AND WE FIND AVENUES TO COPE UP!!! (This is my personal belief and may not be working for all)
I hope this would help you. If not just ignore t.
Regards,
Vj.
Quote:
Originally posted by love_n_peace
Hi CDs,
I need your comments. I am 2.5 yr old immigrant.
Wow, you must be one heck of a 2.5 year old to post stuff like this
.Given the parameters and also valuations, I would suggest to stay put in the aparment. At least hold off till you get a stable job yourself. Home ownership is great and this is from personal experience, but at the same time, as point by others, your expenses will sky-rocket.
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Are you there?
10% down means 270K mortgage. Add CMHC, Closing cost, minor expenses you are looking at 275K at the bare minimum.
Thats 1759 mortgage payement per month. at 6%/25 yrs
Assuming you are moving into a freehold unit (semi/detached/townhome)
250/month Water, Hydro, Heating
225/month property tax
Thats 2234/month just for the home.
Assuming that you make 35000 and wife makes 40000 thats total income of 75k. Generally that means take home income every 4 weeks of 2423
So thats leaves you $189/month for car insurance, car payment, gas, grocery, home improvement, cellphone, savings etc
Not a good idea.
I would suggest buying something in 200-225 range and ensuring that you have 20% down so there is no need to pay CMHC.
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Live and Let Live
Actually it is not the question rather the reply by VJ which has prompted me to give my input. Firstly, I agree with VJ's thoughts that if a family has more then 75 K income in Canada, they should think of buying a house. . ..... However, let me share my experience.
By the time I completed my two years as immigrant in Toronto, I started a job of approx 80K/yr, however, my wife was and still is a non-working house wife. I thought to be "House Owner" so made a purchase deal of a "New" house in Oshawa from builder at a purchase cost of 356K. Just before the completion of house, I got a better job in Kitchener so moved to Kitchener.
Drastic results were that I paid mortgage of vacant house for six months, till it was sold at original cost. So mortgage cost of six months plus sales agent commission at 4.25%, plus closing costs at purchasing & selling resulted in loss of 40K. Added to that was frequent travelling between Kitchenr and Oshawa, and loss of CMHC insurance (because I had purchased with 5% down payment) so in nut shell my total losses were almost $50K.
So brother, do not buy a house till the time you are sure that you will stay in the city for atleast next 5 years. As you are struggling so God knows where you find a good job opportunity. So my sincere advice is that just forget about buying house, and live comfortably. If you have extra money then spend on vacation, or move to a better apartment. House ia white elephant.
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A. Malik
