Real Estate

Buying a house at 30. Realistic?

  • Last Updated:
  • Oct 4th, 2020 8:10 am
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Deal Addict
Jul 29, 2006
4104 posts
919 upvotes
so many factors here that can change the trajectory of you reaching your goals:

- would u be married within the next 5 years
- kids?
- housing prices
- income growth potential
- career change
- back to school?

just to name a few...
Jr. Member
Jun 1, 2019
169 posts
186 upvotes
It will be challenging to buy a house on a single-person income, given where you're at right now.

The "easiest" way, from a financial perspective, to achieve home ownership in 5 years would be to find a partner (that also has a job). Even if your personal $30-$40K per year jumps to $50-$60K per year in 5 years, you will still at the very bottom of the housing market at that time, if not totally out of the housing market. If you have a partner in 5 years, and your combined income is ~$90-$100K per year, you would be in a far stronger position than the position you would be in on your own. So I would suggest not just to focus on your financials, but also consider what it would take to find a desirable partner.
Full Service Realtor
Niagara / Hamilton-Burlington
Sr. Member
Nov 22, 2017
641 posts
371 upvotes
General rule of thumb is you'll qualify for a mortgage of around 5 to 6 times your wage. So you'll only qualify for less than 300k. Keep in mind affordability in GTA has become impossible so a lot of people are looking at areas outside or places serviced by Go Trains. Barrie is one of these areas which prices could increase by a much higher rate than the GTA. Right now detached houses are around $550k and townhomes $450k on average. Factor in that 5 years from now real estate in Barrie will probably be more expensive (topic for discussion). So with a $400k budget you are now looking at small townhouses or condos as being realistic buy.

Things to think about: Can you find a better job in Barrie that is within a manageable commute? Can you increase your salary somehow? Have you thought about sharing ownership with a partner or spouse? Have you thought about another city. There's houses in Windsor or London that go for around 300k which is much more realistic.

Concentrate on increasing your earnings because a 20k+ savings per year is already stretching you thin enough and its generally easier to increase earnings much quicker than savings due to fixed needed expenses.
Member
Jan 29, 2007
274 posts
57 upvotes
Markham
DisneyKruze wrote: Look for a girlfriend with rich parents :-)
this comment is underrated. it's the best thing you can do.
Deal Addict
Aug 14, 2007
2352 posts
212 upvotes
Waterloo
Bought my house at 25. But houses have doubled in price since then, if I was 25 now, no way I could do it.
At 30k / year, I dont think it is feasible without being extremely house poor., all money will be going to youur house plus food with nothing left over.
Also, while it is awesome you can save that much money, unless there is some market correction, the prices of homes are going up faster than the amount you can save.
Deal Expert
User avatar
Nov 28, 2016
18244 posts
2311 upvotes
Out west
Bought mine when I was 24, but I was also a father by then to. So in theory, it depends on who you are and the stage of your life. Some people still live with their parents at 25, so there is no correct answer
Sr. Member
Jul 28, 2008
837 posts
213 upvotes
Toronto
Impossible to give you a definite answer. There's no way of knowing how fast house prices are going to rise over the next 5 years. Even if you put aside half of your income, if a $500k property appreciates 10% per year, you'll be perpetually priced out of the market. Only thing you can do is save as much as possible / keep an eye on prices / always have a good idea of how much you can afford based on your income. You also have to set aside money for closing costs which can be substantial (land transfer tax, legal fees etc).
Deal Addict
User avatar
Feb 23, 2005
2147 posts
2776 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?
depends what you are willing to give up. ur friends might show up with bmws and fancy toys... would you be tempted?

40k a year is a beginner salary... you should be able to make more as the years go on. plus, with all the clubs and bars closed, everyone saving a ton more money! If you go on dates, its cheap now lol, don't have to spend money on fancy restaurants cause they all closed.

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