Snickerdo
Premium
join:2001-02-28
Niagara Falls, ON
| reply to digitalfutur
Re: Show Us Your Papers
I've already done the calculations. I can afford a mortgage, I can afford the taxes and I can afford the utilities. The issue is that I can't save up for a downpayment, and purchasing capital items such as appliances for the kitchen and laundry room would be difficult as well.
My plan is to buy the house, renovate the basement into a separate apartment and then rent it out. That will pay the mortgage and the taxes. All I'd need to pay would be my utilities. I'd end up significantly financially better off than I am now, it's just logistically difficult difficult difficult to get to that place.
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I swear that I will be faithful and bear true allegiance to Her Majesty Queen Elizabeth the Second, Queen of Canada, Her Heirs and Successors, and that I will faithfully observe the laws of Canada and fulfil my duties as a Canadian citizen. |
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NCRGuy
join:2008-03-03
Ottawa, ON
| reply to dirtyjeffer
said by dirtyjeffer  :from your post, i thought you meant something different, and i wasn't suggesting Snickerdo go out and buy a 10 room house. i just meant that if you pay $800 for rent, don't go out looking for a house that will have an $800 mortgage payment, because you will need to factor in things like taxes, condo fees (if it is a condo), etc...if you find that $800 to be affordable, you may need a house with $550 mortgage payment, $200 for taxes (or alter the numbers a bit if condo fees need to be covered in there)...perhaps you need to adjust if your current rent includes utilities as well...that's what i meant. Sounds like we were making the same point.  |
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dirtyjeffer
Oh Yeah
Premium
join:2002-02-21
London, ON
 ·Rogers Hi-Speed
| reply to NCRGuy
from your post, i thought you meant something different, and i wasn't suggesting Snickerdo go out and buy a 10 room house.
i just meant that if you pay $800 for rent, don't go out looking for a house that will have an $800 mortgage payment, because you will need to factor in things like taxes, condo fees (if it is a condo), etc...if you find that $800 to be affordable, you may need a house with $550 mortgage payment, $200 for taxes (or alter the numbers a bit if condo fees need to be covered in there)...perhaps you need to adjust if your current rent includes utilities as well...that's what i meant.
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Today's motto: Dearly beloved, We are gathered here today to bid farewell to personal responsibility and accountability. |
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NCRGuy
join:2008-03-03
Ottawa, ON
| reply to dirtyjeffer
said by dirtyjeffer :said by NCRGuy :Also, when you look at what you can afford to pay in rent, it's easy to say, "Well, that's one hell of a mortgage payment I could be making." That's all well and good if the mortgage payment was the only cost you had to worry about. Add on property taxes, common expenses if you buy a condo or similar type development, and utilities that may have been included in your rent, it can add up quickly. yea, but all those costs are already factored in your "rent"...if you rent a condo for $1000/month, that already includes the condo fees and any other associated costs that the owner has to pay...they don't rent the place out for the same as their mortgage payment and eat the rest of the fees...they cover all the costs of the dwelling, and add a little for "profit", which helps cover any repairs and wear and tear maintenance that may need to be covered (and a security deposit can also help cover and damages). for example, there is a place for sale near the University here (a block away, prime location for student rentals)...the 10 bedroom, two bathroom unit is listed for $449,000 (a little overpriced, but forget that part for now)...your mortgage payment would be about $2100/month P&I...the place is currently fully rented, and brings in $4500/month in rent...the tenants pay their utilities, but you still need to pay for taxes and any repairs/maintenance of the unit...i don't know what the taxes would be, but they are probably about $500/month...provided you can keep the place rented, you can make some pretty decent money. DJ,
I'm really not sure what you're trying to say. Yes, when you rent a condo, the owners expenses are factored in, and taxes and condo fees are included in the rent. How that's relevant to my point I don't know.
My point is that when you rent and then move on to ownership, there are more costs than the mortgage to worry about. While yes, the rent on a condo would incorporate all of the owners expenses, a mortgage is not a fixed amount, and depends on the owner. Depending on the size of one's mortgage payments, it may not even be possible to recoup one's costs. The rent set is not just an addition of all the costs, it also has to be competitive in the current rental market.
As to the 10 bedroom home, again, I'm not really sure of your point. Yes, landlords make money, but I think transitioning from a tenant in one room of a 10-room house to property owner would be an even bigger financial challenge. |
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dirtyjeffer
Oh Yeah
Premium
join:2002-02-21
London, ON
·Rogers Hi-Speed
| reply to NCRGuy
said by NCRGuy :Also, when you look at what you can afford to pay in rent, it's easy to say, "Well, that's one hell of a mortgage payment I could be making." That's all well and good if the mortgage payment was the only cost you had to worry about. Add on property taxes, common expenses if you buy a condo or similar type development, and utilities that may have been included in your rent, it can add up quickly. yea, but all those costs are already factored in your "rent"...if you rent a condo for $1000/month, that already includes the condo fees and any other associated costs that the owner has to pay...they don't rent the place out for the same as their mortgage payment and eat the rest of the fees...they cover all the costs of the dwelling, and add a little for "profit", which helps cover any repairs and wear and tear maintenance that may need to be covered (and a security deposit can also help cover and damages).
for example, there is a place for sale near the University here (a block away, prime location for student rentals)...the 10 bedroom, two bathroom unit is listed for $449,000 (a little overpriced, but forget that part for now)...your mortgage payment would be about $2100/month P&I...the place is currently fully rented, and brings in $4500/month in rent...the tenants pay their utilities, but you still need to pay for taxes and any repairs/maintenance of the unit...i don't know what the taxes would be, but they are probably about $500/month...provided you can keep the place rented, you can make some pretty decent money.
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Today's motto: Dearly beloved, We are gathered here today to bid farewell to personal responsibility and accountability. |
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urbanriot
join:2004-10-18
St Catharines, ON
·Cogeco Cable
| reply to Snickerdo
said by Snickerdo :Unlike a lot of other kids my age who actually have managed to pull off buying a house, I don't have the benefit of crawling to Mommy and Daddy and getting a $15,000 interest-free loan that I probably would never have to pay back. Well, yea, that was kind of the other point I was making. Instead of kids going out and working their asses off to pay for school, buy a house, whatever... they're growing up slower, leeching off of Mommy and Daddy more than ever. You don't have that benefit, I never had that benefit, but almost every single person I know partied it up through university and had a blast. Many of them still live at home! |
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NCRGuy
join:2008-03-03
Ottawa, ON
| reply to Snickerdo
said by Snickerdo :I can totally afford to pay for a mortgage right now. That's not the problem. The problem is saving money for a decent downpayment in any reasonable sort of timeframe. That's much more difficult, especially when you have other debt and expenses that also need to be dealt with. Unlike a lot of other kids my age who actually have managed to pull off buying a house, I don't have the benefit of crawling to Mommy and Daddy and getting a $15,000 interest-free loan that I probably would never have to pay back. This is it -- the downpayment. Also, when you look at what you can afford to pay in rent, it's easy to say, "Well, that's one hell of a mortgage payment I could be making." That's all well and good if the mortgage payment was the only cost you had to worry about. Add on property taxes, common expenses if you buy a condo or similar type development, and utilities that may have been included in your rent, it can add up quickly. |
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dirtyjeffer
Oh Yeah
Premium
join:2002-02-21
London, ON
·Rogers Hi-Speed
| reply to Snickerdo
do you have any RRSP's?
you can withdraw them (no penalty) to use as your down payment, interest free, for 15 years (you have to start paying them back after year 3 or declare that year's "portioned payment" as "income").
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Today's motto: Dearly beloved, We are gathered here today to bid farewell to personal responsibility and accountability. |
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Snickerdo
Premium
join:2001-02-28
Niagara Falls, ON
1 edit | reply to peterboro1
I can totally afford to pay for a mortgage right now. That's not the problem. The problem is saving money for a decent downpayment in any reasonable sort of timeframe. That's much more difficult, especially when you have other debt and expenses that also need to be dealt with. Unlike a lot of other kids my age who actually have managed to pull off buying a house, I don't have the benefit of crawling to Mommy and Daddy and getting a $15,000 interest-free loan that I probably would never have to pay back.
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I swear that I will be faithful and bear true allegiance to Her Majesty Queen Elizabeth the Second, Queen of Canada, Her Heirs and Successors, and that I will faithfully observe the laws of Canada and fulfil my duties as a Canadian citizen. |
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peterboro1
join:2006-11-03
Peterborough, ON
| reply to Snickerdo
said by Snickerdo : Hell, I'm 26 and I've got a ways to go, and I live on my own and take care of myself otherwise. Like DJ says you're paying rent anyways might as well be a mortgage.
I remember my landlord pulling up in a new Grand National telling me about his upcoming trip to Florida and I said screw this I am buying.
I was 26 in University with a family and a job. So I bought the cheapest house on the biggest lot in a good neighbourhood.
I split with my brother on it and bought him out several years later. Where there's a will there's a way. |
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dirtyjeffer
Oh Yeah
Premium
join:2002-02-21
London, ON
·Rogers Hi-Speed
| reply to Snickerdo
well, that really depends on the kind of home you want to buy...remember, if you are paying rent, you are paying a mortgage, just not your own.
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Today's motto: Dearly beloved, We are gathered here today to bid farewell to personal responsibility and accountability. |
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Its a Secret
Whatever
Premium
join:2008-02-23
U B Funny
·Shaw
| reply to Snickerdo
said by Snickerdo : It's not so much about work ethic as it is being able to get a good high-paying job right out of high school where you can afford to blow your money on all sorts of useless stuff, AND buy a house. That's what the marketer's tell you, and is not the reality of life.
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"In the future, that which is not mandatory will be illegal"
"Nobody knows the age of the human race, but everybody agrees that it is old enough to know better" - Anonymous |
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Snickerdo
Premium
join:2001-02-28
Niagara Falls, ON
| reply to urbanriot
said by urbanriot :How many 22 year olds today have the work ethic to do that today? If I wasn't a complete fuckup when I was 22, I could have easily picked up a mortgage and bought a house with a healthy down payment. If my parents raised me the same way their parents raised them, I probably would have. It's not so much about work ethic as it is being able to get a good high-paying job right out of high school where you can afford to blow your money on all sorts of useless stuff, AND buy a house.
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I swear that I will be faithful and bear true allegiance to Her Majesty Queen Elizabeth the Second, Queen of Canada, Her Heirs and Successors, and that I will faithfully observe the laws of Canada and fulfil my duties as a Canadian citizen. |
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urbanriot
join:2004-10-18
St Catharines, ON
·Cogeco Cable
1 edit | reply to Snickerdo
said by Snickerdo :My father bought his first home when he was 22. How many 22 year olds today can afford to do that? Hell, I'm 26 and I've got a ways to go, and I live on my own and take care of myself otherwise. How many 22 year olds today have the work ethic to do that today? If I wasn't a complete fuckup when I was 22, I could have easily picked up a mortgage and bought a house with a healthy down payment. If my parents raised me the same way their parents raised them, I probably would have. |
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Mark Z
Premium
join:2002-10-14
 ·TekSavvy Solutions..
·Bell Sympatico
·Primus Telecommuni..
| reply to urbanriot
said by urbanriot : I don't believe bubble wrapping children and locking down teenagers is helping... Right on!  |
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Snickerdo
Premium
join:2001-02-28
Niagara Falls, ON
| reply to urbanriot
said by urbanriot :"life-long job?" Both my parents and grandparents often go on about how many jobs they had while trying to raise their families. Hell, my Dad's mentioned so many different jobs that he had that it sounds like he's been alive 200 years, rather than 60 or so. I don't know that job stability or the job market has anything to do with it... well, or the cost of education... My grandparents were involved in various aspects of wars, so I don't know what education would have cost then. My father... hmm, he worked a full time, evening job while going to school to feed the family, so I don't know about that one either... My father has had precisely two major jobs during his life - Hayes Dana (where he was laid off), and General Motors (where he took a buyout that he now won't be getting because of Chapter 11, but he's still got his pension). His father was a boiler engineer when they lived in Venezula, then he worked at a mine in Timmins, then when they moved to St. Catharines he worked for Ferranti-Packard, and then he retired. My mom's dad came to Canada in 1952, got a job with Otis in Hamilton, drove from St. Catharines to Hamilton for over 30 years, and had that job until he retired. I have a hard time believing that everyone who raised me was the exception to the rule.
said by urbanriot :You might be right about social values though. I don't know that people have any less capabilities or options now than generations prior, but something's definitely changing. I don't believe bubble wrapping children and locking down teenagers is helping... My father bought his first home when he was 22. How many 22 year olds today can afford to do that? Hell, I'm 26 and I've got a ways to go, and I live on my own and take care of myself otherwise.
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I swear that I will be faithful and bear true allegiance to Her Majesty Queen Elizabeth the Second, Queen of Canada, Her Heirs and Successors, and that I will faithfully observe the laws of Canada and fulfil my duties as a Canadian citizen. |
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elwoodblues
Elwood Blues
join:2006-08-30
Toronto, ON
| reply to urbanriot
My dad had (to the best of my knowledge) 3 jobs in his life (not including the farm work he had to do when he immigrated here).
I on the other hand (and it's partly me because I get bored after a couple of years) since I was a kid well over a dozen different jobs. The longest I stayed anywhere was 7yrs, on average its 2-3yrs (man it's tough to keep to 2 pages on my resume with my history)
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It's 106 miles to Chicago, we got a full tank of gas, half a pack of cigarettes, it's dark, and we're wearing sunglasses. |
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urbanriot
join:2004-10-18
St Catharines, ON
·Cogeco Cable
| reply to Snickerdo
"life-long job?" Both my parents and grandparents often go on about how many jobs they had while trying to raise their families. Hell, my Dad's mentioned so many different jobs that he had that it sounds like he's been alive 200 years, rather than 60 or so. I don't know that job stability or the job market has anything to do with it... well, or the cost of education... My grandparents were involved in various aspects of wars, so I don't know what education would have cost then. My father... hmm, he worked a full time, evening job while going to school to feed the family, so I don't know about that one either...
You might be right about social values though. I don't know that people have any less capabilities or options now than generations prior, but something's definitely changing. I don't believe bubble wrapping children and locking down teenagers is helping... |
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Snickerdo
Premium
join:2001-02-28
Niagara Falls, ON
| reply to urbanriot
said by urbanriot :But don't we have that problem now? With every generation it seems the age of 'adult' is going up, and this isn't the fault of each latest generation. That's more a result of the job market and cost of education and living than social values, though. If kids could still go out and get a life-long job that can buy a house and feed a wife and kids at 18, I'm sure it would still be happening.
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I swear that I will be faithful and bear true allegiance to Her Majesty Queen Elizabeth the Second, Queen of Canada, Her Heirs and Successors, and that I will faithfully observe the laws of Canada and fulfil my duties as a Canadian citizen. |
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urbanriot
join:2004-10-18
St Catharines, ON
·Cogeco Cable
| reply to Snickerdo
said by Snickerdo :True, children lack the same mental capacity and ability to grasp consequences as adults, but that doesn't mean that they should be locked away and not allowed to explore their ability to make choices and decisions. If we did that, we'd end up with some very fucked up and naive children who wouldn't know how to function as adults. But don't we have that problem now? With every generation it seems the age of 'adult' is going up, and this isn't the fault of each latest generation. |
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