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dirtyjeffer
Lest We Forget
Premium
join:2002-02-21
London, ON
 ·Rogers Hi-Speed
| reply to Snickerdo
Re: Show Us Your Papers
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. | |
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. | |
Snickerdo
Premium
join:2001-02-28
Niagara Falls, ON
1 edit | 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. | |
dirtyjeffer
Lest We Forget
Premium
join:2002-02-21
London, ON
·Rogers Hi-Speed
| 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. | |
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. | |
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! | |
dirtyjeffer
Lest We Forget
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. | |
NCRGuy
join:2008-03-03
Ottawa, ON
| 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. | |
dirtyjeffer
Lest We Forget
Premium
join:2002-02-21
London, ON
·Rogers Hi-Speed
| 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. | |
NCRGuy
join:2008-03-03
Ottawa, ON
| 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.  | |
Snickerdo
Premium
join:2001-02-28
Niagara Falls, ON
| reply to digitalfutur
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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