Money Talk (Mutual Funds, ETFs, Stocks & Bonds, Real Estate, Cryptocurrency, your cookie jar)

[coopaloop1234]

5 hours ago, RecoveringGoalie1 said:

\\"Currently, to save up for a down payment for an average Canadian home, buyers would have to save at a rate of 10 per cent for six years — or 69 months.

But in Toronto, where the average home costs approximately $1.2M, the time period required to save for a down payment is much longer.

In order to save enough money for a down payment for a home in Toronto, a resident making a yearly salary of $196,913, saving at a rate of 10 per cent, would have to do so for 26.5 years — or 318 months.

To afford a condo in the city under these circumstances, it would take just under five years, or 56 months."

$521,000 is now a down payment for a 1,200,000 house?

The expectation is to immediately walk into a detached home?

I understand things are tougher, I said that. But there's still a general path that's taken to get into larger homes through leveraging current properties value to afford the next step up. 

It's been this way forever. 

Edited October 4, 2022 by coopaloop1234

[MTH]

I live outside Philly. Houses in the city that are not crack houses are expensive as F. Thus why we bought a house outside the city.

Maybe live outside the city if possible. Commuting sucks but isn't bad. Buy a house where you can, sell it when you pay some of it off and it increases in value. Now you have more cash to put down on a house you like better.

Unfortunately, the market is banged up now. If I were looking for a house now, I'd have to hold a little longer until the prices come back down again. Sales are down (I see open houses every weekend) I imagine prices will creep back down too.

[MTH]

21 hours ago, CJ Boiss said:

I'm getting paid just over $40k before taxes, just under $30k after; roughly $2400 per month. Average rent in my city is $1500 right now, so about the same, but twenty years of inflation (~60% on the CPI since 2000) makes literally everything else more expensive. Utilities, phone and internet, groceries, gas and car insurance. The only reason I'm not in the red every month is because my brother and I are jointly paying a mortgage rather than rent.

You made a lot happen with very little, but people starting out now are facing steeper hurdles and worse starting conditions (I cannot even fathom the idea of being able to buy a new Wrangler just by delivering pizzas. Like, that's literally impossible these days). Same as you faced steeper hurdles and worse starting conditions than people in the early 80's did. It's not wallowing in self-pity to acknowledge that.

This is so true. My kids will be in college in a few years. I can't imagine what it will cost to live for them after. What can you do? I feel for you guys.

My 1995 base model Wrangler was $13,282 MSRP. I don't recall what the actual sale price was. I paid $250 month for 5 years plus $200 month for insurance (kid with Jeep). In today's dollars that's $25,811.96. A 2022 Wrangler starts at $29,995. Close. But a 2022 wrangler is light years better than a new 1995 wrangler.

My 95 didn't even have a radio, air bags, ABS or AC. No joke.