I have been renting an apartment for last three years. I have saved down payment 5%. I have very small family wife & son. I want to buy a house or free hold town house.
I dont know can I affordable in this salary. Can anybody suggest me what should I do. I waiting for your best suggestion. I dont want to live in rent. My take home salary $2200/m only. I am paying $870 now and living in Toronto
Thanks.
Location: God's own country
Posted on: 17-01-09 20:01:01
Adnan,
It is not at all advisable for a person like you with this salary to buy anything anywhere (You also have not given the location as to where you stay).
take for example a house / townhouse selling for 250K. Your mortgage will be atleast 1500 (@ 600 per 100K of mortgage). then you will have to pay for insurance, 5 % brokerage fee when you sell through MLS, Hydro, house furnishing, property tax, Garbage tax, closing costs (one time) and land transfer fee (if applicable). This will easily top $2000 a month...
With your salary you should not even think about it.
alternatively, you can look at employment for your wife, Doing 2 jobs, buying one house and sharing it with another family etc....
All the best in acheiving your dreams and the promise of NA to Desi immigrants.
Peace by TK
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I am a Gents and not a Ladies.
Other than the advice of people here, you really have nothing to lose in speaking with a real estate agent. Personally I would do that first.
With a take home salary such as yours, it might be a stretch. But nothing's impossible and a professional may be able to give you some options at least.
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If you have a gun, you can rob a bank.
If you have a bank, you can rob everyone.
- Bill Maher
Adnan
Go to your home branch(bank) & ask them to give you a figure of what you can afford(if you want more detail on that pm me)....as far as I understand, if you are comfortable paying the current rent & with the other expenses at home, then say you get a 5% int rate, which actually should be lower than this at present time for 5 yr fixed(which I would recommend for a person like you, unless you are ok by a $50-$100 increase, you can go variable) you should be able to afford something around $175000 but a freehold TH or house in that price????...I doubt it. Now this is assuming you pay your own utilities, but if that's included in your rent then your afforadble figure will go even lower.........so best thing to do is go to your bank & ask them.....I did that too before I started looking at houses to buy, so that I don't waste time in looking at something I cannot afford.
Best of Luck
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Pooja
Try to invest some money and time in higher education for you and your wife and then go in the 100,000 $ income bracket.
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You know you are a desi when ........ You spew forth the virtues of India, but don't want to live there...............You've never had a tanning salon membership
Quote:
Originally posted by adnancanada
I have been renting an apartment for last three years. I have saved down payment 5%. I have very small family wife & son. I want to buy a house or free hold town house.
I dont know can I affordable in this salary. Can anybody suggest me what should I do. I waiting for your best suggestion. I dont want to live in rent. My take home salary $2200/m only. I am paying $870 now and living in Toronto
Thanks.
Adnan,
With a take home of $2,200 you should NOT be spending more than 35% on housing expenses, in my opinion. This leaves you with $770 (to spend on mortgage, property taxes and utilities).
You seem to be better of renting for some more time.
Hey, you have done a great job with your savings. Keep it up!
P.S. You said you saved 5% of down payment. Five percent of what amount? Not that my advice will change with your answer, but I am just making a point.
Regards,
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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/
I agree with Amit.
If you keep your eye and ear open about economy, job market, recession news then it does not matter you have 5% or 50% down payment, its not a right time to buy.
It's all about perception when mostly people keep sheep mentality. Here is my personal experience with current sheep's perception.
I'd say at the beginning about 1 in 10 people I ever spoke with about real estate had similar bearish views to me. Now, it's probably closer to 5 of 10. 4 of those 5 don't want to talk about real estate and the 1 left usually keeping a positive outlook.
We've seen a lot of discussion and reports of people sitting on the sidelines lately. The real estate industry wants us to believe that sitting on the sidelines is a mistake and that if you're waiting for prices to come down drastically, you're wasting valuable "equity-building time."
Last year, after the 2006 census, we learned that Canadians had reached an all-time high of home ownership. Over 68% of the 12.5 or so million Canadian households owned their own homes. I'm guessing that number continued to increase in 2007 and early 2008, if only slightly.
That leaves about 32% of Canadian households as renters. Industry is targeting this market precisely because these are the necessary components of continued market growth. There will always be players exiting the market, they must be replaced if balance is to be maintained.
In 2006, the census also told us that roughly 7% of Canadian households live below the poverty line. I think it is safe to assume they are not sitting on the sidelines waiting to buy. So our total sideline percentage is down to 25% or so. Considering that you need a minimum household income of $55-$60K to own cheapest house, that leaves a very small percentage left sitting on the sidelines here, if the national census numbers translate evenly to the local ones.
Annual sales are forecast to be somewhere around 170,000-180,000 across Canada in 2009, down from somewhere around 220,000 in 2008.
How many of these will be to new entrants? Just how big is the segment of households that are apparently just sitting on the sidelines waiting to get in to absord over-build inventory?
Are we different from USA?
Quote:
Originally posted by amit kalia
You seem to be better of renting for some more time.
Hey, you have done a great job with your savings. Keep it up!
Regards,
