Real Estate

Can we Afford this House?

  • Last Updated:
  • Sep 21st, 2020 10:40 pm
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Newbie
Aug 23, 2011
41 posts
39 upvotes
VANCOUVER
Oscar6220 wrote: Talking about not be able to afford a place, we net less than half of you and still decide to get this 1.3m presale. Someone should stop us lol
unless you have a big down payment (50%+) i'd be a little nervous if i were you lol. even at 50% dp, not sure if you can get approved for a 650k mortgage.
Newbie
Jun 30, 2018
8 posts
1 upvote
the current plan is to sell it before completion if we can't get the mortgage part done, possibly the biggest gamble in my life just yet lol
Deal Fanatic
Feb 9, 2009
9308 posts
6911 upvotes
Oscar6220 wrote: Talking about not be able to afford a place, we net less than half of you and still decide to get this 1.3m presale. Someone should stop us lol
Dude you better pray cause if there is even a small correction you probably are done for...and im being nice...
Deal Addict
User avatar
Oct 26, 2007
1982 posts
933 upvotes
YYZ
Sanyo wrote: God damn maybe i should move to edmonton lol. that st albert house would be easy over 2.5 mil in mississauga.
easy 2.5

if its on Mississauga road / certain areas you're looking at 4
Licensed Full Service Realtor
Newbie
Jun 30, 2018
8 posts
1 upvote
Sanyo wrote: Dude you better pray cause if there is even a small correction you probably are done for...and im being nice...
Mid to late 20s’ people tend to make riskier decision perhaps.
:)
Deal Fanatic
Feb 9, 2009
9308 posts
6911 upvotes
Oscar6220 wrote: Mid to late 20s’ people tend to make riskier decision perhaps.
:)
Lol well your younger... did the same thing at your age in 2008 it paid off. Good luck
Member
Jan 29, 2007
262 posts
53 upvotes
Markham
Oscar6220 wrote: the current plan is to sell it before completion if we can't get the mortgage part done, possibly the biggest gamble in my life just yet lol
why not sell not while the market is still hot, pocket the gains, and buy something you can actually afford?
Sr. Member
May 3, 2013
643 posts
199 upvotes
Toronto
Throwaway55 wrote: My partner and I are looking to upgrade our house in Edmonton. We've found a great $950k house but it'll need a lot to work. Probably 200k. We're okay with renovating it slowly though.

I've always been a frugal guy so I am weary about spending a million bucks on a house. It would be hard for me to spend that money even if I were a millionaire.

Together we net about 11600 a month in base salary. Estimated total house expenses (mortgage, property tax, water/heat, insurance) come out to be roughly 4500 monthly.

Am I crazy to think that we might be able to afford this home? By by the rental rule of 28% and 32% both seem to come out ok.
I would just go to a lender and see if they would approve you based on your expenses. The lender will do their due diligence, the lender won't lend you the money if they don't think you can afford it, they got skin in the game.
Newbie
Aug 23, 2011
41 posts
39 upvotes
VANCOUVER
Oscar6220 wrote: the current plan is to sell it before completion if we can't get the mortgage part done, possibly the biggest gamble in my life just yet lol
if you sell, do you pocket at least 700k?
Deal Fanatic
User avatar
Jun 11, 2001
8687 posts
878 upvotes
Haha! That house looks amazing... this is what $1.2 buys on danforth, LOL https://www.realtor.ca/real-estate/2236 ... e-corridor

OP, a thing you should consider as well is how stable is your cashflow/jobs etc. Are you able to land on your feet quickly again if either of you get laid off? Are you in a niche sector that you may need to move? Things to consider.
Sanyo wrote: God damn maybe i should move to edmonton lol. that st albert house would be easy over 2.5 mil in mississauga.
...zzz...zzz...zzz...

www.heatware.com
Newbie
Jun 30, 2018
8 posts
1 upvote
ooops123 wrote: if you sell, do you pocket at least 700k?
How do you pocket 700k on a 1.3m purchase please teach :)
Newbie
Aug 23, 2011
41 posts
39 upvotes
VANCOUVER
Oscar6220 wrote: How do you pocket 700k on a 1.3m purchase please teach :)
read your previous message wrong. thought you were selling an existing property to buy your 1.3m presale, but you are looking to flip the 1.3m presale for a profit. good luck to you!
Sr. Member
Jun 7, 2017
935 posts
673 upvotes
BC
Surely you are joking. You can buy the Taj Mahal in EDM for $750k. The market is cratering. Shop around.
Newbie
Jun 30, 2018
8 posts
1 upvote
ky.antz wrote: why not sell not while the market is still hot, pocket the gains, and buy something you can actually afford?
I think there's a grace period of some sort, can't sell until end of 2020 or jan 2021

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