Personal Finance

Need advice on buying a house

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  • Feb 4th, 2015 8:07 pm
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[OP]
Deal Addict
Sep 2, 2008
1303 posts
52 upvotes

Need advice on buying a house

I have asked similar questions before, but i need a serious advice here. I will need to make up my mind whether i buy property or end up renting. I have about a month to decide. Anyways, i have 30k saved up (total), i have 61k salary job which brings 3k net per month. There is a possibility of overtime which can bring net up to 4k a month, but it's just a possibility. I have an infant and a wife who will be sitting at home with the kid learning English and stuff. I have a good credit score and wonder if i should get a 250k condo/townhouse or end up renting for few years and then buy something. I am 25yo, and thing is that my wife will be immigrating here soon, and i don't want to end up buying a place and not being able to afford it. I have no debt other than 130$ a month for student loan, no car payments.

I need a serious advice here on what i should do, how, and most importantly how much things will cost me. I will greatly appreciate your input. I live in Edmonton BTW and work for Alberta Gov.
9 replies
Penalty Box
Apr 16, 2012
3565 posts
684 upvotes
Greely
3k net = 36k net per year...
Aka u bring home 60% net pay?
Sr. Member
Nov 17, 2014
715 posts
387 upvotes
Ontario
I would keep saving. Your mortgage wouldn't be too bad on its own, probably like $1000 a month but by the time you pay property tax, insurance and such (condo fees if you went that route) you're looking at around $1500 a month. That'd be half your net pay gone.
Deal Addict
User avatar
Jun 26, 2011
1675 posts
379 upvotes
So, with about 30k saved up total, how are you planning on obtaining more money for a downpayment? I assume this is a single income family, and with that in mind, I feel that a 3k/month salary will not be enough for mortgage/utilities/baby expenses/misc.
Deal Addict
Dec 3, 2006
1758 posts
565 upvotes
Vancouver, BC
so did you get married elsewhere and just moved to canada?
is she going to be working at all in the future?

you're 25 and already have an infant, that's pretty early nowadays to have kids.
does she have anything saved up?

based on your circumstances and only single income, i would just rent for now
Deal Fanatic
Dec 12, 2006
5140 posts
854 upvotes
calgary
I think there will be some great deals on houses later this year in the edmonton market... If you can wait that long I would buy, if you can find something in the 200k price range that will fit your family for the next 5 years.

If you are forced to buy in the next 2-3 months I would definitely look at renting.
Deal Addict
Dec 10, 2012
3291 posts
668 upvotes
Canada
How do you end up with 3k/month from a 60k job? (22% fed + 10% prov tax only...)

anyway, you should buy whenever you see a good deal as your life will become more affordable when your wife and kid come over. You'll get plenty of tax break and your disposable income will go way up (income split, child benefits, utilize your wife basic income and what not)
Deal Expert
User avatar
Jul 30, 2007
23670 posts
8642 upvotes
Toronto
Buy only if you can afford + you still have $ to cover saving, daily living expenses, contingencies ( esp wife + kid are coming soon)

You should not be living house poor. That will put extra stress on your family as a whole and this is no life to enjoy
[OP]
Deal Addict
Sep 2, 2008
1303 posts
52 upvotes
25 and a child, that's just a norm for our culture. I am a Citizen, my wife will be a PR by the time she gets here. Also, with that salary, minus all taxes, pension, and medical plans, that's 3k right there. My wife will not be working for at least a year until she figures out the life here and catches up on her language. My question is, if we start renting, wouldn't it be even more difficult to save for future home?
Deal Addict
Aug 14, 2012
1379 posts
175 upvotes
AB
I would buy for sure. edmontons an expensive rental market. you can rent someone else's condo and pay their mortgage, taxes and insurance plus put 200 in their pocket every month or buy your own and build your own equity. condos are cheap and rents expensive its a no brainer

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