Personal Finance

how Much house can I Afford?

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  • Oct 21st, 2012 6:21 pm
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Member
Oct 20, 2010
433 posts
104 upvotes

how Much house can I Afford?

hey guys,

I make $145k incl bonus which is guarantee + allowances

no debt (for poor and suckers)

$50000 savings in 5% accts overseas

My RE brokers says I can afford a 1.2mil home comfortably but that I should maybe go higher to 1.3-.4 and get something in the trump or ritz bc the markey for lux condos is heating up

ok?
55 replies
Deal Guru
Dec 11, 2008
13067 posts
3758 upvotes
how about buying something with 20% downpayment cause your agent is asking you to buy a home that is 10x your income and with luxury condos (def not hot), their maintenance fees are killer so that can eat up into the price tag you can afford

with a rough calculator for $1.3M in mortgage, 30 years amortization, your monthly payments are: $5500 roughly, your take home pay is roughly $8000. So you have about $2500 left over for maintenance fees, and your living costs; insurance, utilities, food, savings, vacation, car/transportation, entertainment etc.

are you in the GTA/Toronto area?
Deal Addict
User avatar
Jan 7, 2003
3055 posts
1185 upvotes
Ottawa
Save at least 20% down, 50k is barely enough for a 300k property let alone for something over a million.
Deal Guru
Dec 11, 2008
13067 posts
3758 upvotes
dux wrote: Save at least 20% down, 50k is barely enough for a 300k property let alone for something over a million.

+1

Wondering if OP is JUST making $145k per year or has been for a few years cause the $50k savings is peanuts based on his salary.
Deal Addict
User avatar
Jun 22, 2004
3048 posts
944 upvotes
Go for it! Your real estate agent has your best interest in mind. Don't worry, your life style won't change at all...
Newbie
Jun 14, 2006
39 posts
2 upvotes
JoeyMBA wrote: hey guys,

I make $145k incl bonus which is guarantee + allowances

no debt (for poor and suckers)

$50000 savings in 5% accts overseas

My RE brokers says I can afford a 1.2mil home comfortably but that I should maybe go higher to 1.3-.4 and get something in the trump or ritz bc the markey for lux condos is heating up

ok?

Hi Joey, you made the comment that debt is for the poor and suckers but you're thinking of taking out a 1.2M mortgage loan? In my books, that's still debt. I agree with the others though that you should save up for a 20% down payment.
Deal Expert
Oct 7, 2010
15536 posts
5790 upvotes
Did the OP just ask for educated opinions aka help, while insulting people (suckers/poor) for being in debt. It's totally uncool.

He turns around and tell us he ONLY has 50k of down payment while making 145k a year.
Deal Guru
Dec 11, 2008
13067 posts
3758 upvotes
spike1128 wrote: Did the OP just ask for educated opinions aka help, while insulting people (suckers/poor) for being in debt. It's totally uncool.

He turns around and tell us he ONLY has 50k of down payment while making 145k a year.

I know, I decided to help but agreed when I read it, pathetic. $50k savings on that salary :lol:
Deal Fanatic
User avatar
Nov 23, 2005
9005 posts
5728 upvotes
Definition of a sucker - individual buying property and only having 3-4% downpayment. :facepalm:
Member
Feb 20, 2011
460 posts
92 upvotes
I hope I'm understanding this correctly. You make $145K/year, yet only have $50K in savings (luckily a big shot like you knows to keep it overseas though). Your broker suggest you can afford a home up to $1.2M but you come on to RFD to ask us if you should spend that extra $100-200K and get a condo in the Trump Tower or Ritz Carlton. hhhmmm....... :facepalm: :facepalm: :facepalm:
Member
Aug 19, 2002
231 posts
24 upvotes
Troll post for sure .... made me laugh OP :lol:
Banned
User avatar
Dec 1, 2011
2427 posts
342 upvotes
Winnipeg
mastersak wrote: Hi Joey, you made the comment that debt is for the poor and suckers but you're thinking of taking out a 1.2M mortgage loan? In my books, that's still debt. I agree with the others though that you should save up for a 20% down payment.

+1
Banned
User avatar
Dec 1, 2011
2427 posts
342 upvotes
Winnipeg
bomba wrote: Troll post for sure .... made me laugh OP :lol:

I'm thinking so as well
Jr. Member
Feb 13, 2012
131 posts
7 upvotes
SCARBOROUGH
put as much as you can.. you will most likely double or triple your money in a few years.. you can't really go wrong with housing in Toronto

I have a feeling that Toronto will surpass Vancouver soon..
Deal Guru
Dec 11, 2008
13067 posts
3758 upvotes
BobJJones wrote: put as much as you can.. you will most likely double or triple your money in a few years.. you can't really go wrong with housing in Toronto

I have a feeling that Toronto will surpass Vancouver soon..

oh yeah that $1.2M luxury condo will be worth over $2M in no time
Jr. Member
Feb 13, 2012
131 posts
7 upvotes
SCARBOROUGH
speedyforme wrote: oh yeah that $1.2M luxury condo will be worth over $2M in no time

why not? Toronto luxury condos are still in its infantcy stage and has a lot of time to catch up with other major world cities
Deal Guru
Dec 11, 2008
13067 posts
3758 upvotes
BobJJones wrote: why not? Toronto luxury condos are still in its infantcy stage and has a lot of time to catch up with other major world cities

are they all sold out like hotcakes though?
Deal Addict
User avatar
Nov 26, 2009
1243 posts
28 upvotes
You're real estate agent is just trying make a quick sale. Everyone knows it's hard to sell condos that are more then 1+ den. Should defiantly invest in a house. Port Credit Area, Oakville, Thornhill, Richmond Hill.
Deal Expert
User avatar
Jan 27, 2004
52937 posts
18145 upvotes
ONTARIO
The idea of ultra expensive luxury condo's makes me mad.

Theres not enough affordable housing in Toronto. People who could afford $1+million for a home definately don't want to live in a Condo. It just seems like wasted space to me.
Especially considering theres $5-$10million dollar condo's in that tower. If someone is well off enough to afford that I doubt they'd be in a condo. This isn't NYC. You could afford a beautiful fully loaded home anywhere in Toronto with that, even rosedale if your heart desires.

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