Real Estate

Buying a house at 30. Realistic?

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  • Oct 4th, 2020 8:10 am
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[OP]
Newbie
Sep 27, 2020
4 posts
1 upvote

Buying a house at 30. Realistic?

I’m 25 years old and I have about $30,000 saved up. I make about 30,40K a year. And I can probably save about 15-20K per year for the next 5 years. Would it be realistic for me to think I can have have my own house at age 30? What I plan to do is put about $20,000 down and get a house in like Barrie area. Put the house for rent and live in the basement of the same house I’m renting out. Would this be realistic? What would be a smart way for me to grow my money in the next 5 years?
27 replies
Deal Addict
Jun 20, 2011
1934 posts
767 upvotes
VANCOUVER
I bought my first place when I was 30-31. It is not out of the question. Set your goals and work towards it.
Deal Addict
Jan 1, 2017
1293 posts
1134 upvotes
dorimoh wrote: I’m 25 years old and I have about $30,000 saved up. I make about 30,40K a year. And I can probably save about 15-20K per year for the next 5 years. Would it be realistic for me to think I can have have my own house at age 30? What I plan to do is put about $20,000 down and get a house in like Barrie area. Put the house for rent and live in the basement of the same house I’m renting out. Would this be realistic? What would be a smart way for me to grow my money in the next 5 years?
How much do you think the house will cost? Do you think you can grow your income in these 5 years by training/education/job experience?
Deal Fanatic
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Oct 16, 2008
7922 posts
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Maple
Depends on where you are.
[OP]
Newbie
Sep 27, 2020
4 posts
1 upvote
ProductGuy wrote: How much do you think the house will cost? Do you think you can grow your income in these 5 years by training/education/job experience?
Aiming for 400-500K. I might be able to move from a Barista position to a management position. I also have hair styling training so I might be able to move up to a Salon that pays and tips more.
[OP]
Newbie
Sep 27, 2020
4 posts
1 upvote
teoconca wrote: Depends on where you are.
I'm currently in Richmond Hill, but this area is out of question. Housing is such crazy here. Same with Toronto. So I was thining Barrie might be a good option but again Barrie in 5 years might be just like Toronto today.
[OP]
Newbie
Sep 27, 2020
4 posts
1 upvote
DDHLeigh wrote: I bought my first place when I was 30-31. It is not out of the question. Set your goals and work towards it.
If you don't mind me asking how much did you have saved and how much were you making?
Deal Addict
Jun 27, 2005
2929 posts
273 upvotes
Good for you for planning ahead. That is the first step.

The answer to your question is yes, of course it can be done. Lots of people have done it including myself.

My best advice to you would be that, use your age as leverage. You’re young, use that to your advantage to increase your training/education which can hopefully lead you to higher salaries. This is the best ROI you can do for your life.

Good luck.
Toronto Illusionist and close-up Magician.
Deal Addict
Jun 20, 2011
1934 posts
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VANCOUVER
dorimoh wrote: If you don't mind me asking how much did you have saved and how much were you making?
I was 30 and girlfriend, now wife was 27 at the time of the purchase. During that time we were around 50k each annually.
We paid 315k for a detached rental in Port Coquitlam, BC in 2004. 25% down. No help from family. We sold it in 2006 for a nice gain and bought a place in east Vancouver in 2007 for 606k which is our current primary residence. Along the way we bought and sold some pre-sales.

You are 25 so there is lots of time to reach your goal. However, there are many things that can change in 5 years like wife, kids, inheritance, job/salary, lotto lol, etc. Some things that can be out of your control. So the only thing you can do is plan the best you can. Educate yourself. Jump at opportunities (not get rich quick schemes). Make sure you expand your network of friends and people you know. Remember, sometimes it really is who you know. You've taken your 1st step already to be interested in the purchase and asking questions on how to make it happen.
Deal Addict
Nov 23, 2003
1931 posts
470 upvotes
DDHLeigh wrote: I was 30 and girlfriend, now wife was 27 at the time of the purchase. During that time we were around 50k each annually.
We paid 315k for a detached rental in Port Coquitlam, BC in 2004. 25% down. No help from family. We sold it in 2006 for a nice gain and bought a place in east Vancouver in 2007 for 606k which is our current primary residence. Along the way we bought and sold some pre-sales.

You are 25 so there is lots of time to reach your goal. However, there are many things that can change in 5 years like wife, kids, inheritance, job/salary, lotto lol, etc. Some things that can be out of your control. So the only thing you can do is plan the best you can. Educate yourself. Jump at opportunities (not get rich quick schemes). Make sure you expand your network of friends and people you know. Remember, sometimes it really is who you know. You've taken your 1st step already to be interested in the purchase and asking questions on how to make it happen.
Those were different times as far are real estate is concerned. The pace at which real estate prices are increasing, it is very hard to predict the right amount of dp that will be needed in 5 years and to actually save it.
Newbie
Sep 14, 2020
54 posts
61 upvotes
Invest in yourself first: Figure out how you can get to an 80-100K+ income in 5 years
Put the money in index funds and let them grow (Something like XUU or VFV for Canadian dollars)
Continue strong savings habits and you should get there

But at this age I would highly stress increasing your income, I was around 30K a year in early 20s, 100K+ by 25 and it made saving much easier.
Member
Oct 28, 2013
254 posts
186 upvotes
Toronto
I agree that you need to look at a way to increase your income over the next several years. You've done a great job of saving but you'll be hard pressed to afford a mortgage, taxes, bills, etc on $30-$40k a year.
Sr. Member
Mar 2, 2017
813 posts
1438 upvotes
Toronto
dorimoh wrote: I’m 25 years old and I have about $30,000 saved up. I make about 30,40K a year. And I can probably save about 15-20K per year for the next 5 years. Would it be realistic for me to think I can have have my own house at age 30? What I plan to do is put about $20,000 down and get a house in like Barrie area. Put the house for rent and live in the basement of the same house I’m renting out. Would this be realistic? What would be a smart way for me to grow my money in the next 5 years?
Have you considered doing this a bit different? What's stopping you from investing in yourself over the next 5 years to increase your income in many multiples giving you a lot more options then and over the long run? Many ways to get to home ownership by 30, just offering a different perspective as strictly saving is one way - albeit slightly outdated now. You need to save, but the low hanging fruit is doubling down on your earning potential.
Realtor, Investor, CPA
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Oct 16, 2008
7922 posts
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Maple
dorimoh wrote: I'm currently in Richmond Hill, but this area is out of question. Housing is such crazy here. Same with Toronto. So I was thining Barrie might be a good option but again Barrie in 5 years might be just like Toronto today.
It's good that you have saving plan to buy a house at 30. I am afraid you have to re-plan. Your saving will not be enough for real-estate increases. You income is so low and not stable, banks will not approve mortgage; if they do you will struggle. You still can buy a house but it will take longer.

I bought 1st condo when I was 32. We bought 1st house when I was 37 but our family income was > $100K and jobs were very stable. It was 20 years ago.
Last edited by teoconca on Sep 29th, 2020 11:18 am, edited 1 time in total.
Sr. Member
User avatar
Jan 21, 2017
859 posts
258 upvotes
I did it at 29. So totally doable.

1. Keep price point $300-450k though.
2. Find ways to increase your salary. To help save and get bigger mortgage
3. Save money, it’s fine to enjoy life. just don’t make it a habit to drop $200 on bars , clubs or restaurants every weekend. (We’ve all done it in our 20s.)
4. Invest. Index funds are fine but you need an accelerator for your saving. The 1% saving account won’t do it
5. You can go super frugal if you want but I think it’s bonus. Super frugal : roommates , or live at home, cook your own meals , bike instead of drive etc. again you don’t need to but it helps
Newbie
Oct 28, 2018
40 posts
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Cooking your own meals is considered super frugal?

If I ate out all the time we'd lose our house haha.
Member
Jun 15, 2015
355 posts
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Thornhill, ON
Look for a girlfriend with rich parents :-)
Deal Addict
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Apr 12, 2013
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Markham
DDHLeigh wrote:
I was 30 and girlfriend, now wife was 27 at the time of the purchase. During that time we were around 50k each annually.
We paid 315k for a detached rental in Port Coquitlam, BC in 2004. 25% down. No help from family. We sold it in 2006 for a nice gain and bought a place in east Vancouver in 2007 for 606k which is our current primary residence. Along the way we bought and sold some pre-sales.

You are 25 so there is lots of time to reach your goal. However, there are many things that can change in 5 years like wife, kids, inheritance, job/salary, lotto lol, etc. Some things that can be out of your control. So the only thing you can do is plan the best you can. Educate yourself. Jump at opportunities (not get rich quick schemes). Make sure you expand your network of friends and people you know. Remember, sometimes it really is who you know. You've taken your 1st step already to be interested in the purchase and asking questions on how to make it happen.
This is very good advice OP, keep your money working as hard as you are.
Singh_21 wrote: Those were different times as far are real estate is concerned. The pace at which real estate prices are increasing, it is very hard to predict the right amount of dp that will be needed in 5 years and to actually save it.
Its hard to go in with that mentality, if you do so you will never win. I am sure in 2004 600k for a house was bizarre too.
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Koodo, Public Mobile, Lucky Mobile Customer
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Jun 13, 2009
766 posts
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Toronto
I agree with the posters who suggested you invest in yourself. There is no way you will be able to buy anything without a high enough income. That bar has been raised drastically over the last 10 yrs. I suggest you do this even if you don't want to buy a home. It makes the most sense to do it while you are young while you are in better health, and with less responsibility.

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