Discussion in 'Real Estate - Individual Project Threads' started by Edward Skira, Nov 14, 2011.
120-130 Harbour (Tridel, 75s, Wallman)
I'm looking to buy is this building and our agent told us they got word VIPs will be able to buy in early June. Anyone else heard anything?
havent heard anything, but please post if you do...im also interested in buying here
anyone know any word on this condo?
I am looking at buying. Currently finishing up my masters degree. Starting work at a big four accounting firm at the end of the year. Parents will pay for 20% down for the condo. I will need to cover the mortgage payments once they begin in 2017.
Let's say I get a unit for $700,000, how much would I have to take in/year pre tax by move in (2017) to be able to afford the unit?
Would a $80k pre tax salary be enough?
Id say this building will be finished more likely sometime in 2016....you definitely will have to be making well over 100 grand a year if you want this and have a half decent lifestyle here in Toronto....Cheers
You have a masters and work at a big four accounting firm, and yet ask an internet forum how much of a mortgage you can afford? Seriously?
Yea... that's a weird one.
I audit corporations, not financial planning for individuals. On top of that I'm a first time buyer so I have very little practical experience. Just looking for advice from more experienced buyers.
Thanks for any helpful advice.
as FYI for deranged, you will have a $560K mortgage with 20% down on $700K unit.
your affordability will be highly dependent on interest rates;
however, with a $80K pre-tax salary the mortgage will be 7x income (and almost 9x income purchase price), so you can figure out if it's a wise financial decision or not, when historically the typical mortgage was 3.0-3.5x income
deranged, I think you will find that most lenders today will not approve a loan amount for much more than 5x's your gross annual income (household income), and that is if you have excellent credit...for sure you should get pre-approved before you make any offers..
Thanks for all your help everyone. Let me explain my assumptions and estimations so that you can better help me.
I'm trying to gauge the affordability of a 2 bedroom unit at the moment.
-I'm assuming my salary in 2017 to be ~80k. ~90k in 2018. ~100k in 2019. (based on 12% raises which is standard for CAs)
-I don't think getting a mortgage would be a problem. I can get the loan under my parents' names and pay them mortgage.
-I was thinking of getting a 2bdrm and renting one of the rooms out until I can afford the place myself/ get married.
$3,000 --> A 500k loan at 5% interest amortized over 25 years would cost 3k a month in mortgage payments.
$500 --> Condo fees would be approx $500 assuming 1000sq ft at $0.50.
$500 --> Food/entertainment would be approx $500 a month.
($1,000) --> I was hoping I can rent the extra room out for $1000/month.
$3,000 --> That would cost me net $3,000 a month to live.
$3000 x 12 months = 36k / year.
If I made 80k a year and was taxed at an avg rate of 40% I would have $48k after tax income.
12k for savings/ other costs.
I didnt count property tax because I'm not sure how it works for condos -1% on fair market value of the unit?
Do you think my approximations are reasonable?
How are you guys budgeting for your condo living? What type of costs do you pay that I haven't anticipated?
Again thanks for all your help. This forum is great!
Our mortgage is less than 4 times our gross income and it is still punishing us as far as expenses go. Take that into consideration. Also, renting out a room for $1000 seems to be stretching it when you can get a 1-bedroom around town for $1200ish. 1% for prop. tax is reasonable, which is another 5-7k. So now you're disposable income is down into 4 figures.
To be honest, on an $80k income the most I'd spent on real estate is about $350,000. That would still cost you nearly $1800 a month + condo fees plus prop. taxes.
* electricity and heat are probably metered separately >>> $100-125/m average
* property insurance >>> $30-40/m
* condo fees are realistically $0.60 psf >>> so 20% more than your estimate, so add another $100/m
* property taxes range from 08-1.0% of purchase price >>> $450/m
* cable tv, telephone, internet, mobile, etc >>> $200/m
around $900/m in additional costs, which almost takes up the remaining discretionary income
ps ... your mortgage of 5% only lasts for 5-year term of your 25-year amortization.
odds are the rate will be at least 8% for the long-term average.
I think he might not have factored in the phantom rent and condo closing fees into his costs.
Also 500k over 25 yrs requires 20k/yr repayment I think? Plus 25k/yr interest assuming 5% interest. That's $3750/month mortgage.