Buying a condo in GTA . Maintenance cost. total monthly cash outflow on housing

[fakenoob]

I was browsing through the property listing in GTA through realtor.ca website. and i see that apart from the very high property value they have a caveat that there always is very high maintenance cost plus i am guessing some property taxes to be paid on yearly basis.

particularly for example look at this listing.
http://www.realtor.ca/propertyDetails.aspx?PropertyId=15399292

This will cost me 450000 in total. that will roughly translate to the monthly mortgage of $2400 . Now this is really high. half of the in-hand income will go away in the mortgage payment ( assuming i will make at least 5000 per month) .
Plus there is maitance cost of about $550 per month.

so total expense towards housing is $3000 . thats 60% of what i plan to earn if things go well. this seems really high. i know that Canadian real estate is overpriced specially in Toronto. but how can first time afford this? or do we wait for housing crisis in Canada just like it happened in the US ?

 

[scylla]

Keep in mind you'll also have to pay property taxes six times a year - as well as land transfer tax of around $10K when you first purchase the property. There's also insurance. So make sure you factor in the total cost of ownership before you leap.

There are endless debates on online real state sites regarding Toronto's housing market and whether the prices will remain where they are or dip. I think expecting a crash akin to the US is probably unrealistic. However at some point prices could certainly soften (likely when mortgage rates shift and borrowing becomes more expensive). At the same time, Toronto's population is expected to continue to grow - which will continue to push demand up. So it's really anyone's guess what will happen.

One option is to keep your costs lower is to purchase outside of the city.

 

[fakenoob]

I find it unrealistically expensive to own a house there in GTA with expected 100K of income. Never anywhere seen maintenance cost . that high wow.

does anyone have their personal experience to share as to how they have managed to own a house and how much of the burden they feel.

 

[scylla]

I used to own a 2 bed / 2 bath loft/condo in downtown Toronto (King & Spadina area). Sold this a few years ago and moved to a small house just north of Bloor (near Bathurst). Yes - it's very expensive and your money doesn't buy you much. Just around the corner from me a 100 ft by 20 ft empty lot (i.e. lot with no house) recently sold for $700K.

I don't really know what to say - except that it's very important to buy within your means and not over leverage yourself in terms of your debt load. Before you buy, it's important to sit down (either on your own or with your partner/spouse) and look at your finances and monthly expenditures in detail to understand what you are comfortable buying / paying - and what you are or aren't willing to give up in terms of your lifestyle.

Good luck.

 

[fakenoob]

I used to own a 2 bed / 2 bath loft/condo in downtown Toronto (King & Spadina area). Sold this a few years ago and moved to a small house just north of Bloor (near Bathurst). Yes - it's very expensive and your money doesn't buy you much. Just around the corner from me a 100 ft by 20 ft empty lot (i.e. lot with no house) recently sold for $700K.

I don't really know what to say - except that it's very important to buy within your means and not over leverage yourself in terms of your debt load. Before you buy, it's important to sit down (either on your own or with your partner/spouse) and look at your finances and monthly expenditures in detail to understand what you are comfortable buying / paying - and what you are or aren't willing to give up in terms of your lifestyle.

Good luck.

Thanks for sharing your personal experience. really appreciate it.. it looks difficult even with the best case scenario ( 100K income ) when i plan to settle there. now i hear vancouver is even more expensive..

It makes me now think i should get married just to own a house. ( double the income and share the room !!! )

the monthly expense i will have to make there in maintenance, taxes etc apart from the mortgage is more than the mortgage i would pay in the part of the world i am living ( south Asia)

makes me think sometimes i need to radically do different. starting business etc or something .

 

[steaky]

This will cost me 450000 in total. that will roughly translate to the monthly mortgage of $2400 . Now this is really high. half of the in-hand income will go away in the mortgage payment ( assuming i will make at least 5000 per month) .
Plus there is maitance cost of about $550 per month.

By making a considerable downpayment, even a first time homebuyer (especially those immigrated to Canada recently) can be paying a monthly expense less than $2000.

 

[steaky]

the monthly expense i will have to make there in maintenance, taxes etc apart from the mortgage is more than the mortgage i would pay in the part of the world i am living ( south Asia)

Funny thing is the monthly expenses here in Vancouver apart from the mortgage is less than the mortgage and maintenance I would have to pay in the part of the world I was living (East Asia).

 

[steaky]

I find it unrealistically expensive to own a house there in GTA with expected 100K of income. Never anywhere seen maintenance cost . that high wow.

Some day, you should visit some major cities in East Asia which housing prices and maintenance costs are even less affordable than GTA and Vancouver.

 

[fakenoob]

Funny thing is the monthly expenses here in Vancouver apart from the mortgage is less than the mortgage and maintenance I would have to pay in the part of the world I was living (East Asia).

Where? singapore?

 

[scylla]

Where? singapore?

Tokyo (for example) is horrendous and makes Toronto look cheap.

 

[zardoz]

The other option is live outside the GTA and commute in on the Go Train. Lots of obvious alternatives in Milton, Cambridge, the K-W area to the west...

 

[fakenoob]

The other option is live outside the GTA and commute in on the Go Train. Lots of obvious alternatives in Milton, Cambridge, the K-W area to the west...

Thanks thats one of the option i am keeping open. What do you guys think is better a) buying a condo out of the city area or b) buying an independent house/ row house. i think the maintenance fees in condos/apartments are similar to an independant house. i dont know about the taxes and other things that has to be paid. so if total outflow is same for condos and houses then i would obviously go for houses. i wont mind driving or taking public transport to work in Toronto. Toronto is where i plan to work.

 

[scylla]

I would assume the maintenance output for a house is going to be higher than the maintenance costs of a condo. Taxes on a house will be more. Insurance will be more as well.

 

[fakenoob]

I would assume the maintenance output for a house is going to be higher than the maintenance costs of a condo. Taxes on a house will be more. Insurance will be more as well.

Thanks .

and thanks a lot for your positive contribution to this forum that is of immense help to people like me. Really appreciate it

 

[ALRIVAS]

Hello fakenoob I like to point out some things that you are not aware of.
1 If you live in a condo you don't pay insurance as is included in the maintenance fee is simply the law,you can get content insurance to protect your belongings is just an option.

2 As a first time home buyer you have a tax rebate of $2000 from the province and 3725 for Toronto so if you buy a property in Toronto for 400k you only pay $475 land transfer tax.

3 The average maintenance fee per sq foot is 50 cents.

4 Click on the link below I searched some apartments for less than 370k and condo fees less than $470 per months I'm a Realtor and have been playing this game for almost 13 years, some people on this blog try to help scaring new immigrants not to buy real estate.
Do your homework before you come to the country my best advice hire a realtor we will help you at no cost to you as we are paid by the seller and is the same case if you need to lease, for more info on the process check my site alrivas. com.



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