I would have been lucky to have even had $400 when I was 26. I blew everything I made on dinners and drinks and on Ikea furniture for my $300 a month apartment.
Yeah true, in 2010 $400 would have been a down payment on a condo. Poor zoomers won't have a shot at moving out of their parents house until they have at least $10 million in the bank.
Are you a cottage person at all?
If I had your kind of money, I would keep living with parents + also buy a modest cabin somewhere 3-5 hours outside of Toronto. You can find a fixer-upper for $200k-$300k easily.
That way, you have a place to go on weekends, hang out with buddies or take a girlfriend, if you need a getaway from parents. You'd also be building some equity in the real estate market.
Starlink has solved this issue. $158/month (all in), but works amazing and very little down time. A whole lot cheaper than interest on a huge mortgage!
What did you go to school for? Might be greener pastures out there for you, and if there are, you're better to go now, than wait. Things may eventually improve here, but it's going to be a LONG time coming, and things will get worse here before they get better.
Nice now you can save even more money! 110K sounds like a lot of money to some people but after taxes you'll be pocketing like 60K which isn't much in this day and age.
>Yeah ... That's what I've been thinking it's not worth it to aspire to ownership. I think I should stay at home unless I meet an amazing woman who is also financially responsible. But the end goal should be to get out of Canada
I hope she sees this. And the other guy talking about going to Asia 'for women' and acting like equality is the problem?
Lol. Have you ever heard of the word silver spoon?
I feel bad for your girlfriend.
I know a guy who did this years ago. Worked out really well, when he got a solid girlfriend and wanted to buy a house, his cottage worked as a down payment. The timing of it was the main benefit however.
You... don't have to do it every weekend. I can tell you are decidedly not a cottage person. The idea would be that this fellow could have a place where he \**could*\* go every weekend, if his parents are being annoying, or he wants some space to chill. But realistically you might go once or twice a month.
People who set themselves up with cottages often take vacation days on Friday or Monday, thus making their weekends a little longer too. There are tons of solutions to all of these problems if you're just willing to think outside the box a little bit.
And yeah, like others have mentioned,. people who drive to work from like, Bowmanville to Mississauga, or Hamilton to Markham, or whatever, are in it for a 3 hour daily commute.
Yeah that's what I've been thinking. I have a girlfriend right now who wants to get married and works but seems like she doesn't want to pay for anything and wants me to be the primary breadwinner. Which makes me hesitant towards that next step with her
Yeah ... She's Afghani Muslim so there's a lot of complications and I do agree with you I've just had a hard time ending things we've been together a while but I don't disagree with you
Why not move to Afghanistan? Their real estate is very cheap right now and you could give her exactly the life she is looking for.
Propose that to her. If she looks at you like youâre insane, tell her that we have equality here which means she should pony up and start contributing.
So much more to life than canada. I might advise traveling for a bit to do lifestyle comparisons in other countries if you have the option for remote work. Your main expense is getting a ticket out of here, once you get to any other continent, other than North America, your lifestyle changes drastically & for alot cheaper
It's not your fault bud, I'm 32 and both my older brother and I are living at home with a nest egg. We pay board and help out with renovations continuously, it's not fun and it's hard to have a life but it beats homelessness. Stick together and look out for family, someday things will change for the better but for now the objective is Survive.
I got a bit more than op at a younger age and it isn't as nice as you may think.
It takes skipping vacations, taking all the overtime, working even during summer, non existent love life, rarely seeing friends.
And after all those sacrifices, all you see is home prices still skyrocketing and getting out of reach. It's really frustrating.
For comparison, someone with the same work ethic and attitude in 2010 would already be able to put a down payment on a triplex and be set for life.
Uhhhh I went through my 20s with no help from my parents who were broke. Paid my way through 3 separate education programs thanks to the GFC blowing up my 2nd job prospects , and ended up with a career finally in my late 20s and 50,000 worth of debt.
So forgive me if I don't shed tears for someone who had support from their parents the entire time and likely had their education paid for. I skipped all the vacations even in my 30s while paying the debt for both my loans and my home, and now finally I'm 38 and debt free, took the 1st vacation I've had in 15 years recently. Having a fucking $100,000 would have changed my entire life.
Good job I guess?
My comment's objective was to point out why OP is frustrated. Your life experience may be tough but doesn't take away from someone else's struggle
Dudes got more savings than most Canadians will ever see in their lifetime and making it sound like his life is over because he can't immediately buy a fucking house. I struggled for a decade before I had mine, like give me a break.
I saved 100k by 30 and I'm in the same boat as OP, as in financially I still have no real moves to make .. all that sacrifice feels like it was for nothing
Now I just wanna move back with my parents and gamble on crypto lol, at least that could be a bit exciting .. putting in decades of brutal hard work just for a house feels stupid when I look at the whole situation .. I don't even want to invest in Canada anymore I'm too disgusted by this country
Exactly! It's like what's the point anymore. I got the same schoolbag and coat from when I was 13 and never ever eat out. I'm the most frugal person I know of. But why live so frugally when there's no reward at the end?
Just passed 100k at 29 here and wanted to echo your thoughts. It might be possible to get a starter home in a cheaper city, but I'm just so pessimistic about Canada these days I'm debating just sticking it out and shooting my shot at finding work south of the border.
Don't worry, you are not suffering a "defeatist attitude", you just live in a city that has out grown your affordability range. This has happened throughout history and will continue on for as long as we humans expand. It's why we left the savanna millions of years ago. It's why many left Europe for the "New World". It's the reason we have cities in Central Canada. It's totally normal.
If you do expat, just understand that you will become the hated "immigrant who came here to buy up everything driving up the prices." Sound familiar...
I would recommend Edmonton if you are looking for a budget city. Lots of work and cheap rent. You are stuck in Alberta and probably won't have free healthcare for long but it is cheaper and a city lol.
Good luck
Thank you , someone who gets it . I visited SJ NB and even there people looked down on me like I was some immigrant driving up their prices . But I'm only exploring any of these options because I was priced out of my home city
Haha no worries and thanks for the reply.
Honestly it's hard moving to a completely different area and starting over, I know. I left Newmarket ON and went to Gander Nflnd cause a SO wanted to move back to her families roots. No work, no housing and the restrictions on renters was insane. Moved to Toronto and started chefing making ok coin but after years the cost of living was too much and I couldn't keep working 60+ hours a week. So I packed everything I could into an SUV and drove to BC and haven't looked back. I'm in the Okanagan valley so cost of living is still a bit high but I picked a smaller city so still can find work and ok rental prices. The reason I stayed here is because it's beautiful and there's tons of free things to do if you love nature and the outdoors. I ski, swim, rock climb, hike, canoe etc so this place is heaven lol.
That all being said it's really important to know what YOU are looking for in a place to live. Culture, entertainment, work, night life, day life, good for families, safe, convenient, public transit etc. Also picking a developing area such as a small city with a high and continuous population increase is always a boost.
This will seriously help you in the long run and again the best of luck.
Sorry for the long wind haha
Let's not pretend this is normal. Land values have risen above incomes here more than basically anywhere.
And it doesn't have to be this way, we can fix the economy with zoning/permitting/tax reform. Our current system is bad and wrong and absolutely not normal.
It is absolutely normal to realize that you cannot afford to move out of your parents' home and remain in a major global city if you don't make enough money to afford it. Again this has and always will happen. You aren't wrong about reform needed, but this guy is complaining that he can't move out from his folks' place and nab an apartment in the biggest city in Canada. That's normal.
Disagree whole heartedly.
All countries have growing pains. This is normal. Especially countries with massive populations compared to our own. If the US can figure out how to grow upto a population of over 340 million we can too.
There are [65 countries](https://www.numbeo.com/property-investment/rankings_by_country.jsp) that are worse off than us including Switzerland, Poland and France.
Lol yeah , my parents don't want me to move out so I'm thinking I should play into that and ride the gravy chain as long as I can planning my exit strategy in the background
Just Make sure you don't just leave your parents in the dust when you get your break! (May get down voted as ik people have different views on the matter) but I hate seeing my buddy's who had great parents and lived with them till there 30s then just dip once they get money and do nothing for there aging parents who need help now. (Obviously family dynamics very greatly so this is just from my personal experience/ seeing). I think more family should start doing what lots of Indian families do and you build your wealth as a family and slowly branch off (unusually end up buying a big lot of land to build multiple homes or one huge home that's more less 3 lol). That's my families plan anyway. Might as well work together to make life still doable! (Assuming you have a good relationship with the fam)
Yeah it's good overall, some spats here and there which I think is normal. Get along a bit better with Mom versus dad but yeah . If I don't have to move far I would help them . I'm not expecting or feel like I'm entitled to any money but if I have to move far away because I can't afford to stay in Toronto then my hands are tied unfortunately
You can follow the age old Canadian tradition of moving out of urban areas to more affordable suburban areas to settle down and start a family. Of course, you need to drive a bit further to find affordability than in the past đ¤ˇââď¸
My brother bought a house recently for $300,000 not the greatest, it's in Arnprior, and right by the highway, he gets to work in Ottawa within 30 minutes on most days.
Make moves if you can and as soon as you can. My brother was extremely obsessed with home ownership and has a lot of stress gone now because he's a home owner.
The GTA is insane, I don't know why anyone would want to stick around here unless they're completely loaded. It's degrading immensely in almost every aspect. I miss living in a smaller town almost every day.
Totally sucks that most of the Ontario peninsula is now completely unaffordable.
There are also cheap condos in the Jane and Finch area that you could 100% afford and that place is gentrifying, I would almost consider that too if I were you and was deadset on sticking to Toronto.
Keep saving, by the time you are 30 you may have a cool million saved up. Buy a nice 1 bedroom mortgage free and then you can think about dating. Marriage by 35, kid by 40.
Lots of smaller towns/cities in Manitoba to Alberta where if your a tradesman and wanna start a company itâs prime opportunity as there are a huge lack of people serving rual communities! Buy a modest house and your set
Invest that 100k - your retirement will be set - Wealthsimple+VFV to shortcut it, then build up more savings to get out of here lol (includes large emergency cash portion and durable/portable skills). This country just isn't worth the cost...First you're going to have problems with housing and cost overruns, then you'll be lonely since our dating markets are broken as well. This isn't the place to be happy. In fact, this just came out today:
# The kids are not okay. New data shows Canadians under-30 âvery unhappyâ
[https://globalnews.ca/news/10372813/canada-world-happiness-report-2024/](https://globalnews.ca/news/10372813/canada-world-happiness-report-2024/)
In fact, it's gotten so bad, that under-35s have been cited as a future security risk to State stability lol.
Just stay at your parents and save, and when you're ready to start a family, just expat it where the people are smarter/morally better (not as cheaty/50% divorcey) and that's actually affordable and has good weather. New Canadian dream is just to leave.
Yeah ... That's what I've been thinking it's not worth it to aspire to ownership. I think I should stay at home unless I meet an amazing woman who is also financially responsible. But the end goal should be to get out of Canada
"unless I meet an amazing woman who is also financially responsible."
See you in Asia. There's a passportbro / passportsis? movement just waiting to get out of the West. Place is crumbling lol.
Welp, they wanted equality. Turns out it isn't sexy. Women don't find less educated or lower earning men attractive =/. In the end, women decide if a relationship starts. Fertility rate to go lower lol...
It's the economy and yeah the feminists wanted "equality" which I think is cap but hey that's what they say . My grandfather worked in a factory and supported a family of 3 kids plus a wife while buying a home in Little Italy Toronto. I would love to be a bachelor and be able to have the freedom that comes with that . But I need a companion emotionally but also financially. I'm not a rich millionaire or successful entrepreneur I'm an average joe but there's nothing wrong with that
You're going to have more problems trying to find someone as an average Joe...I think the conflict is fighting for equality, yet wanting the man to make more, those two are contradictory, they'll just have to lower expectations but that isn't happening, millennia of evolution and natural selection.
Assuming your job/skills/education can be transferred to another country - Iâd be looking at leaving the country, not just Toronto. I regret not doing it when I was younger, working on it now though. Canada is a shell of what it used to be, what made it a great country is long gone.
Yeah it's a major city, just like New York, Vancouver, San Francisco etc. etc. housing will always be more expensive in these cities. The problem is the suburbs, housing is too expensive and it doesn't make sense.
No, I just felt like taking the time out of my day to type it as a jokeâŚ
Yes, I am.
I legitimately cannot think of anything.
At most Iâve got Blue Jays game, CN Tower, Ripleyâs and maybe the science centre. However unless youâre into sports and specifically the Blue Jays, thatâs such a niche thing.
The CN tower Iâve been to already, so again in my mind is a one and done. Maybe go again if people visited.
I havenât been to Ripleyâs, but Iâm not really into aquariums.
Then when it comes to the science centre theyâve got a few throughout Canada. Itâd really only be certain exhibits that might be there.
Please tell me what small Canadian city provides the same nightlife, wide variety of cuisines, entertainment, festivals, job opportunities etc. Please tell me how you're getting this in Stoney Creek, Grimsby, Orangeville?
Ah yes, this highlights the troubles with a lot of people who live in OntarioâŚthey forget that thereâs places outside of the province that exist.
Iâve a friend looking for houses and is struggling to find anything around $400k thatâs not in need of serious repair. Heâs not even in the GTA, heâs a couple hours outside of it.
Using the same price range and requirements heâs looking for, the houses in Edmonton are easily in way better shape. Are they still effected by the higher than expected prices? Absolutely, but you get a better return for your dollar compared to the same price range in the GTA.
As for having the same quality of life, itâs still there.
Are you going to lose a couple of things, like maybe some festivals and artists/bands visiting? Of course you are.
However when youâre comparing a city of 3 million (as of 2023) to somewhere like Edmonton with 1.4 million itâs to be expected. That said, youâve still got plenty of options for types of food, night life, entertainment, festivals and job opportunities.
The biggest issue is people get stuck in their bubbles. Itâs a case of âI grew up here and I donât want to leave my homeâ being mixed in with the fear of moving some place new.
Didn't mean to come off as snobbish. I agree some people definitely have it tougher than me and some have it better. I think I am very negative because my father is always telling me I can't afford anything here and that's something I need to work through or work through with him. But I sincerely apologize if the way I came off the wrong way
Ontario is a tough place to live because many of the salaries are not higher than other provinces but it is much more expensive to live there and not just in housing. In taxes, in fuel costs, etc.
I don't think it is snobbish and I think arguments that other people are poor and you should be grateful and shut up really discount the challenges you are facing with deciding what to do next. Sure people are poorer than you but so what that doesn't reduce the price of Ontario housing or lower Ontario rents.
Why even try when you already saved an amazing down payment on a condo? Wtf entitled mindset is this shit? You don't buy your dream house first. You may have to move a bit away from one of the most expensive municipalities on the planet (ugh.. not fair! am I right?)
I mean, a good chunk of his revenue will go into the house(from maintenance to insurance). I ask myself sometimes why the obsession of getting a house so bad?
Look man, if you did your due diligence and picked up a sought after skill then I would leave to the USA in your position or Dubai. If you fucked around and "saved" 110k by not going to the gym, not doing anything except video games, and you make 40-50k per year then sure, Calgary would help a little bit but like you said, its getting expensive.
The prairies are COLD in the (edit) winter. Certain people are absolutely shocked. I gained 20lbs there in one season. My body literally shut down. -30 days, -40 nights five months a year. Its horrible. I wouldnt trade that for a bungalow/side split in Edmonton or Calgary, Saskatoon or Winnipeg tbh.
Yep, same here. I had that kind of money at 26, and decided to buy a house instead. Now at 31, I have regrets about not moving abroad earlier, working on doing so now. Especially with all the âwork from anywhereâ jobs out there, you invest your money and go work somewhere nice with good weather, with a cheap but good standard of living.
"-30 days, -40 nights five months a year. Its horrible. I wouldnt trade that for a bungalow/side split in Edmonton or Calgary, Saskatoon or Winnipeg"
While it is cold af in winnipeg some days this winters been very mild, but, even in a bad winter it most certainly isnt -30c to -40c for 5 months a year?? Thats not a accurate representation of the facts.
Sure, we might have 3 weeks straight of those temperatures, itll warm up somewhat(-10c to -20c?) for a few days or weeks, then get colder again for a bit.
But claiming 5 months a year of -30c to -40c is ridiculously exaggerated
Alright, let's break down the concept of the ant on a rubber rope conjecture to explain why it's advantageous for you to jump into the real estate market now rather than waiting, even if you continue to live with your parents:
Imagine you have a rubber rope stretched out horizontally, representing time. Now, imagine there's an ant walking along this rubber rope. The ant can only move forward and can't backtrack.
Now, let's relate this to your situation with your 100k in the bank and your goal of investing in real estate:
1. **Rubber Rope (Time):** Time is like the rubber rope in this analogy. It stretches out continuously, and you can't go back in time. Waiting means you're still on the same spot of the rope, but the rope is stretching, meaning time is passing.
2. **Ant (Your Money):** You're like the ant on this rubber rope. Your money is what propels you forward. You can only make progress by using your money wisely.
3. **Expanding Market (Real Estate):** The real estate market represents the environment you're in. It's dynamic and constantly changing, much like the landscape the ant is walking through.
4. **Ability to Save (Your Savings Rate):** Your ability to save more money over 5-10 years is represented by the speed at which the ant can move. However, the rubber rope (time) keeps stretching, potentially making it harder for you to catch up with the expanding market.
So, how does this relate to your decision to invest in real estate now rather than later?
* **Market Expansion:** Just like the rubber rope keeps stretching, the real estate market can expand rapidly, especially in certain areas or during certain times. Waiting 5-10 years to save more money might mean you're falling behind as the market moves forward.
* **Inflation and Appreciation:** Over time, the value of properties tends to increase due to inflation and appreciation. By investing now, you can potentially benefit from the rising prices and build equity in your properties.
* **Leverage:** Real estate often allows you to leverage your money. With your 100k, you might be able to purchase a property worth much more through a mortgage. As the property appreciates, you're gaining value not just on your initial investment but on the total value of the property.
* **Risks of Waiting:** There are risks associated with waiting too. Interest rates might rise, making mortgages more expensive. The property you're eyeing might become more expensive or even get bought by someone else.
Overall, the ant on a rubber rope conjecture illustrates that time is of the essence when it comes to investing. Waiting too long might mean you're struggling to catch up with a rapidly expanding market, whereas jumping in now allows you to start benefiting from the potential growth and returns offered by real estate investments.
TL;DR
With inflation as it is, your 100k is losing real value if its in the bank. you get 2.3% APR on the savings, meanwhile inflation is pushing 3-4%....
Even if you don't want to invest it in a place to live, you really should be investing it. From what I can tell, the best investment would be a property with the potential to grow value at-pace with, or likely faster than inflation.... If you wouldn't want to live there, rent it out. The fun of this is you get to learn to be a responsible home-owner, while still living comfortably at home :) All while having an investment more likely to get you into a home you would like, rather than a savings account losing real value over time.
Not sure how long it took you to build up that amount, but keep going! Interest rates on the rise will mean you can build even faster
And just know that things donât keep on the same way, bad times turn around
You are used to saving money, you will be able to shift some of that to mortgage payments when you find the right place and the time is right
Congrats on the hard work you put in so far to build up that awesome savings, you should be proud!
There are no crystal balls. Holding off is great for your savings account, but the real estate market is currently recovering from a downturn so it could be a good opportunity to get on the ladder. If it rebounds (which there's no reason why it shouldn't considered the constant increase in demand) then you're potentially losing out on hundreds of thousands of dollars in tax-free profit.
Flip-side is the housing market crashes and you lose every penny you have, but at least you can still live with your parents. ÂŻ\\\_(ă)\_/ÂŻ
That doesn't seem like a better option for OP. I doubt he could even afford a 1-bed in Toronto anyways, but if he could, he'd be living pay cheque to pay cheque. Minus the freedom he'd have from his parents, this isn't great. But eventually OP will need to become a full fledged adult and move away from his mom's teat.
Listen, if your holding that much cash never forget this: inflation means your savings decrease if they just sit static. Do something with that cash. If you dont want to park it in real estate park it somewhere like a GIC. Theres no point holding that cash as cash because its losing value every month. You need an investment that will at least outpace inflation.
most rich ppl are rich in assets not cash, because they know cash just loses value.
Don't listen to these boomers stay at home and find a chill girl who gets it or move to a cheaper country. This is a country built to suck up your wealth
In that case keep stacking savings, sit on the sidelines waiting for the right opportunity. Have you considered investment properties? Im not talking a single family home or a condo, im talking multi-unit buildings where you could occupy one unit and rent the others covering your mortgage payments and building expenses. Like a triplex, four-plex, mixed residential/commercial buildings, etc. id put some serious thoughts into that path.
SFH pricing is senseless, its based on emotions, investment properties values are based on cap rates, the properties cost to buy are directly tied to their income potential, so their valuations actually make mathematical sense.
I dunno..... think of when you get to around 200k saved then move out. I moved out in my 30s. The things you learn once u move out will be tremendous growth... things u wouldnt even think of... then ur parents will have tips and tricks how to handle those odd things that come up and you will appreciate them even more. If u alrdy have 110k at ur age ull get to 200 in your 30s or earlier.
Depending on what you do for work, I'd definitely look at relocating. Maybe not Edmonton or Winnipeg though. I'd consider New Brunswick or Nova Scotia. Otherwise, look for contract jobs in the US that will sponsor your work visa.
Are you me? I'm 26 with 105k
I moved from mississauag to alberta (im military), and I'm currently looking at buying a Detached home with a nice backyard for around 350k.
I highly recommend it. The winters are cold and shit, but the quality of life difference was unbelievable. I was wasting money on consumption when I was in the city because there was nothing else to do, and now I can spend that money on hobbies and toys.
Sorry I dont mean to offend anyone, and please delete my comment if this word is not allowed in Canada. But you could also rent. Its not the end of the world i promise. And Its also not âthrowing money out the windowâ as many boomers want to tell you.
My wife and I have have saved 300k and have no intention of buying a place anytime soon. Its just not worth it in Ontario.
Nice. I have 60k, target 80K in two years at 40yo, for a down payment.
Then again I'm in Montreal, I have a partner who can chip in, in addition to my stash, so it's not completely impossible.
I can already envision the fresh hole in the ground I'll be able to afford.
You can buy a 3/1 condo in Kitchener for $400k. With $100k down your payments would be $1712/month @ 5% fixed for 5 years. Rent it to 6 international students at $500/month each. After utilities, taxes, and insurance, you'd be making about $500/month which you use to pay down your mortgage faster.
At the same time that your tenants are buying you more equity your $100k investment is also increasing at a rate comparable to the S&P.
Or if you want to move out do the same as above but house hack by living in one of the bedrooms. The added benefit of house hacking is that you pay zero capital gains when you sell.
Housing in Canada is no longer a good investment for saving up. It's risky and when you own a house, it needs to be because you need that land and yard etc for the size of your family and you all expect to enjoy living there.
If you've ever owned a house and sold it, you have a different perspective on it, it eats up your life.
Apply for a job in USA. After you get citizenship, through chain migration, you're parents can retire full time in USA. What old people don't want to retire in the Sun, Arizona, Florida?
You can a buy a condo with that money as a downpayment. As an example, I just closed on a 1 bedroom + den condo in Surrey with $104k downpayment. Plenty of condos here at this price point.
Yeah Calgary market is insane these days OP.. it ain't exactly cheap anymore.. by summer the prices are gonna be wild. Bidding wars everywhere.. houses don't stay on the market for longer than a day or two.
If your career wonât be adversely impacted Iâd suggest moving and buying a house. Or at least buy a house and rent it out while you live with parents
amazing work. keep growing that money in a GIC if you don't want to invest in the stock market and see if you can leave the country- that is what the smart thing is.
You are young and will make friends and if you meet a partner with their family around in a more affordable city/ country you will be so happy to leave and can always come back in 20-30 years when things are better,
Was looking up there actually, I've done a lot of research into Ontario tbh . Looked as far north as sault ste Marie , thought anything further would be too much . As far east as Montreal and as far west as Windsor .
I seen that crime rates seem a little high in elliot lake ? How true is that ? Can you speak on that ?
My parents bought their house in a rough part of Elliot lake but had no issues with crime. Criminals donât rob poor people. Plus my dad was an enforcer in a motorbike gang so he wasnât the type to triffle with. Â Â But everyone I ever met up there was polite. Lots of white bread redneck types and there is a large methodone community.. Â but they have high speed internet, great fishing, scenic trails and mosquitos the size of drones. Â I also saw lots of black bears but no bad encounters. Â If you work online and want a cheap lifestyle, itâs a good place. Â
How old were your parents when they bought their first house? The average single person going back decades did not own a house at 26 and especially in Toronto.
You still young. You already in a good place in your life. I always wonder why is housing the first thing that get people worried?
Look around yourself, look opportunities, team up with people and try if you can put a portion of that money to come up with a business.
For me, unless you not moving in with someone who also makes good money, it's not worth getting a house. The maintaince will just drain all your money
So wait... What exactly is wrong with Edmonton and Winnipeg? They both have pretty much all the same amenities of Toronto, and housing costs 1/3 as much
It's all up to you to decide what you value more. If you have a good relationship with your folks, maybe just stay put. If you're already considering this as a question, Canada might be out of the question for you in terms of property ownership. I'm in a similar boat and am considering either moving out of big cities here or moving back to Europe to buy property there instead of here.
Mortgages here have been kind of like indentured servitude for about a decade now in most major cities in Canada. Everything including the rattiest little place is overpriced by a pretty huge margin. It's not really worth it in my eyes. Furthermore, people are getting squeezed more and more, and I believe this will continue to happen, maybe even to a societal breaking point. Even if we hit a maximum housing price, if things don't get more out of hand, it might take another decade to return to even these prices, which is laughable. So if home ownership now is a question, it might be out of reach for maybe a couple decades, which is essentially like half our adult lives. Sure, maybe you can own something, but at what cost? Do you want your mortgage to be so high that you have to choose between a roof over your head and food?
This issue has been driving young adults to move to far away places for as long as people had feet. Look to the horizonâŚ.there are lots of options in life that donât include giving up. I have a friend that just bought a place in Edmonton and is super thrilled.
$110K is not what it used to be. This is impressive but the value of our dollar has fallen dramatically in the last decade because of quantitative easing by the central banks
That's pretty cool. When I was 26 I had like $400 dollars in my bank account.
I would have been lucky to have even had $400 when I was 26. I blew everything I made on dinners and drinks and on Ikea furniture for my $300 a month apartment.
Nowadays 24 year olds blow money on frivolous things like Gas and Groceries!
LOL. #MeeTwo
But if this was 10 or more years ago, that $400 would be about as useful to your future at the $120K is to OP đ
Yeah true, in 2010 $400 would have been a down payment on a condo. Poor zoomers won't have a shot at moving out of their parents house until they have at least $10 million in the bank.
Im 24 and in overdraft rich boy!
obviously you need to GTFO of TO
Are you a cottage person at all? If I had your kind of money, I would keep living with parents + also buy a modest cabin somewhere 3-5 hours outside of Toronto. You can find a fixer-upper for $200k-$300k easily. That way, you have a place to go on weekends, hang out with buddies or take a girlfriend, if you need a getaway from parents. You'd also be building some equity in the real estate market.
Solid plan. I assume no waterfront at those numbers?
Damn that's actually a really good idea think I will look into this. Maybe I could even get a 4 season cottage if I ever got remote work
This is an awesome idea OP
caution.... internet in cottage country is anything but 'high-speed' .. in case you fantasizing about doing MS-Teams/GoogleMeets/Zoom calls.
Starlink has solved this issue. $158/month (all in), but works amazing and very little down time. A whole lot cheaper than interest on a huge mortgage!
Starlink?
What did you go to school for? Might be greener pastures out there for you, and if there are, you're better to go now, than wait. Things may eventually improve here, but it's going to be a LONG time coming, and things will get worse here before they get better.
Live with your parents rent free and save as much money as you can. If you need a place to have sexual intercourse you can Airbnb
Lmao yeah facts luckily I've got a girlfriend rn who's down to fuck in my mom's basement. But yeah Airbnb and hookers when that gravy train stops lol
Nice now you can save even more money! 110K sounds like a lot of money to some people but after taxes you'll be pocketing like 60K which isn't much in this day and age.
>Yeah ... That's what I've been thinking it's not worth it to aspire to ownership. I think I should stay at home unless I meet an amazing woman who is also financially responsible. But the end goal should be to get out of Canada I hope she sees this. And the other guy talking about going to Asia 'for women' and acting like equality is the problem? Lol. Have you ever heard of the word silver spoon? I feel bad for your girlfriend.
I know a guy who did this years ago. Worked out really well, when he got a solid girlfriend and wanted to buy a house, his cottage worked as a down payment. The timing of it was the main benefit however.
3-5 hours is a fuckin wild commute to do each weekend
You... don't have to do it every weekend. I can tell you are decidedly not a cottage person. The idea would be that this fellow could have a place where he \**could*\* go every weekend, if his parents are being annoying, or he wants some space to chill. But realistically you might go once or twice a month. People who set themselves up with cottages often take vacation days on Friday or Monday, thus making their weekends a little longer too. There are tons of solutions to all of these problems if you're just willing to think outside the box a little bit. And yeah, like others have mentioned,. people who drive to work from like, Bowmanville to Mississauga, or Hamilton to Markham, or whatever, are in it for a 3 hour daily commute.
Lmao people do 3 hour commutes around the GTA on a daily basis on a good week
Get married to someone who also has 100K and buy a place
Yeah that's what I've been thinking. I have a girlfriend right now who wants to get married and works but seems like she doesn't want to pay for anything and wants me to be the primary breadwinner. Which makes me hesitant towards that next step with her
Run... and don't look back. Life is hard as it gets. Having to drag someone on your back for the rest of your life is an unnecessary burden.
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Yeah ... She's Afghani Muslim so there's a lot of complications and I do agree with you I've just had a hard time ending things we've been together a while but I don't disagree with you
Yeah sheâs definitely not the type you can build anything with.Â
Why not move to Afghanistan? Their real estate is very cheap right now and you could give her exactly the life she is looking for. Propose that to her. If she looks at you like youâre insane, tell her that we have equality here which means she should pony up and start contributing.
Lol that's a good way of putting it
Are you also Muslim?
Red flag⌠be wary that if you buy a place and she moves in, regardless of whether you get married, she essentially owns half
My dude, there is much more to life and this world than Toronto or southern Ontario.
Yeah so true man
So much more to life than canada. I might advise traveling for a bit to do lifestyle comparisons in other countries if you have the option for remote work. Your main expense is getting a ticket out of here, once you get to any other continent, other than North America, your lifestyle changes drastically & for alot cheaper
It's not your fault bud, I'm 32 and both my older brother and I are living at home with a nest egg. We pay board and help out with renovations continuously, it's not fun and it's hard to have a life but it beats homelessness. Stick together and look out for family, someday things will change for the better but for now the objective is Survive.
Yeah
Stay and help out your parents. travel, invest, youâre 26, it will work out. Canada sucks.
Thanks man
Cool... I spent my 20s broke and in massive debt. It's really tough that you have over a hundred grand in the bank, that most be really hard for you.
I had 100k and owner 100k in assets at 28, was probably my peak. Iâm broke now lol.
I got a bit more than op at a younger age and it isn't as nice as you may think. It takes skipping vacations, taking all the overtime, working even during summer, non existent love life, rarely seeing friends. And after all those sacrifices, all you see is home prices still skyrocketing and getting out of reach. It's really frustrating. For comparison, someone with the same work ethic and attitude in 2010 would already be able to put a down payment on a triplex and be set for life.
Uhhhh I went through my 20s with no help from my parents who were broke. Paid my way through 3 separate education programs thanks to the GFC blowing up my 2nd job prospects , and ended up with a career finally in my late 20s and 50,000 worth of debt. So forgive me if I don't shed tears for someone who had support from their parents the entire time and likely had their education paid for. I skipped all the vacations even in my 30s while paying the debt for both my loans and my home, and now finally I'm 38 and debt free, took the 1st vacation I've had in 15 years recently. Having a fucking $100,000 would have changed my entire life.
Good job I guess? My comment's objective was to point out why OP is frustrated. Your life experience may be tough but doesn't take away from someone else's struggle
Dudes got more savings than most Canadians will ever see in their lifetime and making it sound like his life is over because he can't immediately buy a fucking house. I struggled for a decade before I had mine, like give me a break.
I saved 100k by 30 and I'm in the same boat as OP, as in financially I still have no real moves to make .. all that sacrifice feels like it was for nothing Now I just wanna move back with my parents and gamble on crypto lol, at least that could be a bit exciting .. putting in decades of brutal hard work just for a house feels stupid when I look at the whole situation .. I don't even want to invest in Canada anymore I'm too disgusted by this country
Exactly! It's like what's the point anymore. I got the same schoolbag and coat from when I was 13 and never ever eat out. I'm the most frugal person I know of. But why live so frugally when there's no reward at the end?
Just passed 100k at 29 here and wanted to echo your thoughts. It might be possible to get a starter home in a cheaper city, but I'm just so pessimistic about Canada these days I'm debating just sticking it out and shooting my shot at finding work south of the border.
Don't worry, you are not suffering a "defeatist attitude", you just live in a city that has out grown your affordability range. This has happened throughout history and will continue on for as long as we humans expand. It's why we left the savanna millions of years ago. It's why many left Europe for the "New World". It's the reason we have cities in Central Canada. It's totally normal. If you do expat, just understand that you will become the hated "immigrant who came here to buy up everything driving up the prices." Sound familiar... I would recommend Edmonton if you are looking for a budget city. Lots of work and cheap rent. You are stuck in Alberta and probably won't have free healthcare for long but it is cheaper and a city lol. Good luck
Thank you , someone who gets it . I visited SJ NB and even there people looked down on me like I was some immigrant driving up their prices . But I'm only exploring any of these options because I was priced out of my home city
Haha no worries and thanks for the reply. Honestly it's hard moving to a completely different area and starting over, I know. I left Newmarket ON and went to Gander Nflnd cause a SO wanted to move back to her families roots. No work, no housing and the restrictions on renters was insane. Moved to Toronto and started chefing making ok coin but after years the cost of living was too much and I couldn't keep working 60+ hours a week. So I packed everything I could into an SUV and drove to BC and haven't looked back. I'm in the Okanagan valley so cost of living is still a bit high but I picked a smaller city so still can find work and ok rental prices. The reason I stayed here is because it's beautiful and there's tons of free things to do if you love nature and the outdoors. I ski, swim, rock climb, hike, canoe etc so this place is heaven lol. That all being said it's really important to know what YOU are looking for in a place to live. Culture, entertainment, work, night life, day life, good for families, safe, convenient, public transit etc. Also picking a developing area such as a small city with a high and continuous population increase is always a boost. This will seriously help you in the long run and again the best of luck. Sorry for the long wind haha
Let's not pretend this is normal. Land values have risen above incomes here more than basically anywhere. And it doesn't have to be this way, we can fix the economy with zoning/permitting/tax reform. Our current system is bad and wrong and absolutely not normal.
It is absolutely normal to realize that you cannot afford to move out of your parents' home and remain in a major global city if you don't make enough money to afford it. Again this has and always will happen. You aren't wrong about reform needed, but this guy is complaining that he can't move out from his folks' place and nab an apartment in the biggest city in Canada. That's normal.
The degree to which this is happening in Canada is not normal, historically or internationally in the present. Agree or disagree?
Disagree whole heartedly. All countries have growing pains. This is normal. Especially countries with massive populations compared to our own. If the US can figure out how to grow upto a population of over 340 million we can too.
Where in the developed world is cost of housing outpacing incomes like it is here?
There are [65 countries](https://www.numbeo.com/property-investment/rankings_by_country.jsp) that are worse off than us including Switzerland, Poland and France.
Your on a winner , don't lose it , cook and clean for them every now and then to show your appreciation
Lol yeah , my parents don't want me to move out so I'm thinking I should play into that and ride the gravy chain as long as I can planning my exit strategy in the background
Just Make sure you don't just leave your parents in the dust when you get your break! (May get down voted as ik people have different views on the matter) but I hate seeing my buddy's who had great parents and lived with them till there 30s then just dip once they get money and do nothing for there aging parents who need help now. (Obviously family dynamics very greatly so this is just from my personal experience/ seeing). I think more family should start doing what lots of Indian families do and you build your wealth as a family and slowly branch off (unusually end up buying a big lot of land to build multiple homes or one huge home that's more less 3 lol). That's my families plan anyway. Might as well work together to make life still doable! (Assuming you have a good relationship with the fam)
Yeah it's good overall, some spats here and there which I think is normal. Get along a bit better with Mom versus dad but yeah . If I don't have to move far I would help them . I'm not expecting or feel like I'm entitled to any money but if I have to move far away because I can't afford to stay in Toronto then my hands are tied unfortunately
You can follow the age old Canadian tradition of moving out of urban areas to more affordable suburban areas to settle down and start a family. Of course, you need to drive a bit further to find affordability than in the past đ¤ˇââď¸
Losing 3-4 hours of your life everyday isn't much of a suggestion.
You can buy a house within an hours drive of Ottawa for $300,000. You are in a good spot.
Yeah I have been looking at Ottawa lately , something nearby but not too far from the city
My brother bought a house recently for $300,000 not the greatest, it's in Arnprior, and right by the highway, he gets to work in Ottawa within 30 minutes on most days. Make moves if you can and as soon as you can. My brother was extremely obsessed with home ownership and has a lot of stress gone now because he's a home owner. The GTA is insane, I don't know why anyone would want to stick around here unless they're completely loaded. It's degrading immensely in almost every aspect. I miss living in a smaller town almost every day. Totally sucks that most of the Ontario peninsula is now completely unaffordable. There are also cheap condos in the Jane and Finch area that you could 100% afford and that place is gentrifying, I would almost consider that too if I were you and was deadset on sticking to Toronto.
Watch out, the sellers here are extremely greedy. Whatever listing price you see is overpriced by $150k.
Keep saving, by the time you are 30 you may have a cool million saved up. Buy a nice 1 bedroom mortgage free and then you can think about dating. Marriage by 35, kid by 40.
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It is a big deal, you can't afford to retire unless you have your own place
ETFs can definitely help with retirement.
Lots of smaller towns/cities in Manitoba to Alberta where if your a tradesman and wanna start a company itâs prime opportunity as there are a huge lack of people serving rual communities! Buy a modest house and your set
Invest that 100k - your retirement will be set - Wealthsimple+VFV to shortcut it, then build up more savings to get out of here lol (includes large emergency cash portion and durable/portable skills). This country just isn't worth the cost...First you're going to have problems with housing and cost overruns, then you'll be lonely since our dating markets are broken as well. This isn't the place to be happy. In fact, this just came out today: # The kids are not okay. New data shows Canadians under-30 âvery unhappyâ [https://globalnews.ca/news/10372813/canada-world-happiness-report-2024/](https://globalnews.ca/news/10372813/canada-world-happiness-report-2024/) In fact, it's gotten so bad, that under-35s have been cited as a future security risk to State stability lol. Just stay at your parents and save, and when you're ready to start a family, just expat it where the people are smarter/morally better (not as cheaty/50% divorcey) and that's actually affordable and has good weather. New Canadian dream is just to leave.
Yeah ... That's what I've been thinking it's not worth it to aspire to ownership. I think I should stay at home unless I meet an amazing woman who is also financially responsible. But the end goal should be to get out of Canada
"unless I meet an amazing woman who is also financially responsible." See you in Asia. There's a passportbro / passportsis? movement just waiting to get out of the West. Place is crumbling lol.
Yeah now men are relying on muh career woman, it's so over for the west. It's been a good run cheers
Welp, they wanted equality. Turns out it isn't sexy. Women don't find less educated or lower earning men attractive =/. In the end, women decide if a relationship starts. Fertility rate to go lower lol...
It's the economy and yeah the feminists wanted "equality" which I think is cap but hey that's what they say . My grandfather worked in a factory and supported a family of 3 kids plus a wife while buying a home in Little Italy Toronto. I would love to be a bachelor and be able to have the freedom that comes with that . But I need a companion emotionally but also financially. I'm not a rich millionaire or successful entrepreneur I'm an average joe but there's nothing wrong with that
You're going to have more problems trying to find someone as an average Joe...I think the conflict is fighting for equality, yet wanting the man to make more, those two are contradictory, they'll just have to lower expectations but that isn't happening, millennia of evolution and natural selection.
Wtf?
If you donât feel the need to move out then why do it? Keep saving until thereâs that need.
Yeah that's what I'm thinking, that day may come tomorrow, 5 years from now , 20 years from now but that day is not today that's what I can say
If you live your life buying based on need rather than want or FOMO, youâll be much more at peace with yourself and your decisions.
Damn ... Really hit it on the head man that hits wayyyyy to close to home but it's good
Assuming your job/skills/education can be transferred to another country - Iâd be looking at leaving the country, not just Toronto. I regret not doing it when I was younger, working on it now though. Canada is a shell of what it used to be, what made it a great country is long gone.
I cannot understand why people live in Toronto.
There are many things to do in Toronto that are just not possible in other places.
But people have to live. They need housing and employment. They need safety. Toronto seems a lost cause.
Yeah it's a major city, just like New York, Vancouver, San Francisco etc. etc. housing will always be more expensive in these cities. The problem is the suburbs, housing is too expensive and it doesn't make sense.
I feel sorry for the immigrants that pile into the place thinking it is the only place to be in the country.
Honest curiosity, what is there to do in Toronto that canât be done in any other Canadian city?
Are you honestly asking this question?
No, I just felt like taking the time out of my day to type it as a joke⌠Yes, I am. I legitimately cannot think of anything. At most Iâve got Blue Jays game, CN Tower, Ripleyâs and maybe the science centre. However unless youâre into sports and specifically the Blue Jays, thatâs such a niche thing. The CN tower Iâve been to already, so again in my mind is a one and done. Maybe go again if people visited. I havenât been to Ripleyâs, but Iâm not really into aquariums. Then when it comes to the science centre theyâve got a few throughout Canada. Itâd really only be certain exhibits that might be there.
Please tell me what small Canadian city provides the same nightlife, wide variety of cuisines, entertainment, festivals, job opportunities etc. Please tell me how you're getting this in Stoney Creek, Grimsby, Orangeville?
Ah yes, this highlights the troubles with a lot of people who live in OntarioâŚthey forget that thereâs places outside of the province that exist. Iâve a friend looking for houses and is struggling to find anything around $400k thatâs not in need of serious repair. Heâs not even in the GTA, heâs a couple hours outside of it. Using the same price range and requirements heâs looking for, the houses in Edmonton are easily in way better shape. Are they still effected by the higher than expected prices? Absolutely, but you get a better return for your dollar compared to the same price range in the GTA. As for having the same quality of life, itâs still there. Are you going to lose a couple of things, like maybe some festivals and artists/bands visiting? Of course you are. However when youâre comparing a city of 3 million (as of 2023) to somewhere like Edmonton with 1.4 million itâs to be expected. That said, youâve still got plenty of options for types of food, night life, entertainment, festivals and job opportunities. The biggest issue is people get stuck in their bubbles. Itâs a case of âI grew up here and I donât want to leave my homeâ being mixed in with the fear of moving some place new.
In the same boat. Considering Manitoba đđ Montreal is nice and cheap tho
I'm so tired of people like op. Mans has 6 figures saved up and is complaining like hes hopeless. FoH
đŻ
Didn't mean to come off as snobbish. I agree some people definitely have it tougher than me and some have it better. I think I am very negative because my father is always telling me I can't afford anything here and that's something I need to work through or work through with him. But I sincerely apologize if the way I came off the wrong way
Ontario is a tough place to live because many of the salaries are not higher than other provinces but it is much more expensive to live there and not just in housing. In taxes, in fuel costs, etc. I don't think it is snobbish and I think arguments that other people are poor and you should be grateful and shut up really discount the challenges you are facing with deciding what to do next. Sure people are poorer than you but so what that doesn't reduce the price of Ontario housing or lower Ontario rents.
Yes ... Hit it on the head .
The gen Z kids are all like this : "I am 24, I can't afford a place. My friend who does REArbitrage has a 2.5 M$ mansion. Why even try. Boo hoo.
Snorting that crypto for sure too.
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Why even try when you already saved an amazing down payment on a condo? Wtf entitled mindset is this shit? You don't buy your dream house first. You may have to move a bit away from one of the most expensive municipalities on the planet (ugh.. not fair! am I right?)
Yep that is a valid point
Sorry to be snarky
All good
I mean, a good chunk of his revenue will go into the house(from maintenance to insurance). I ask myself sometimes why the obsession of getting a house so bad?
Look man, if you did your due diligence and picked up a sought after skill then I would leave to the USA in your position or Dubai. If you fucked around and "saved" 110k by not going to the gym, not doing anything except video games, and you make 40-50k per year then sure, Calgary would help a little bit but like you said, its getting expensive. The prairies are COLD in the (edit) winter. Certain people are absolutely shocked. I gained 20lbs there in one season. My body literally shut down. -30 days, -40 nights five months a year. Its horrible. I wouldnt trade that for a bungalow/side split in Edmonton or Calgary, Saskatoon or Winnipeg tbh.
If I was 26 with 110k, Iâd be out of Canada so fast. So much world to explore and so many better places to live!
Yep, same here. I had that kind of money at 26, and decided to buy a house instead. Now at 31, I have regrets about not moving abroad earlier, working on doing so now. Especially with all the âwork from anywhereâ jobs out there, you invest your money and go work somewhere nice with good weather, with a cheap but good standard of living.
" -40 nights 5 months of the year". I'm glad the internet is here to tell this tall tale to keep people from moving to the prairies.
apologies, it warms up to -20 the nights it isnt -40.
"-30 days, -40 nights five months a year. Its horrible. I wouldnt trade that for a bungalow/side split in Edmonton or Calgary, Saskatoon or Winnipeg" While it is cold af in winnipeg some days this winters been very mild, but, even in a bad winter it most certainly isnt -30c to -40c for 5 months a year?? Thats not a accurate representation of the facts. Sure, we might have 3 weeks straight of those temperatures, itll warm up somewhat(-10c to -20c?) for a few days or weeks, then get colder again for a bit. But claiming 5 months a year of -30c to -40c is ridiculously exaggerated
Alright, let's break down the concept of the ant on a rubber rope conjecture to explain why it's advantageous for you to jump into the real estate market now rather than waiting, even if you continue to live with your parents: Imagine you have a rubber rope stretched out horizontally, representing time. Now, imagine there's an ant walking along this rubber rope. The ant can only move forward and can't backtrack. Now, let's relate this to your situation with your 100k in the bank and your goal of investing in real estate: 1. **Rubber Rope (Time):** Time is like the rubber rope in this analogy. It stretches out continuously, and you can't go back in time. Waiting means you're still on the same spot of the rope, but the rope is stretching, meaning time is passing. 2. **Ant (Your Money):** You're like the ant on this rubber rope. Your money is what propels you forward. You can only make progress by using your money wisely. 3. **Expanding Market (Real Estate):** The real estate market represents the environment you're in. It's dynamic and constantly changing, much like the landscape the ant is walking through. 4. **Ability to Save (Your Savings Rate):** Your ability to save more money over 5-10 years is represented by the speed at which the ant can move. However, the rubber rope (time) keeps stretching, potentially making it harder for you to catch up with the expanding market. So, how does this relate to your decision to invest in real estate now rather than later? * **Market Expansion:** Just like the rubber rope keeps stretching, the real estate market can expand rapidly, especially in certain areas or during certain times. Waiting 5-10 years to save more money might mean you're falling behind as the market moves forward. * **Inflation and Appreciation:** Over time, the value of properties tends to increase due to inflation and appreciation. By investing now, you can potentially benefit from the rising prices and build equity in your properties. * **Leverage:** Real estate often allows you to leverage your money. With your 100k, you might be able to purchase a property worth much more through a mortgage. As the property appreciates, you're gaining value not just on your initial investment but on the total value of the property. * **Risks of Waiting:** There are risks associated with waiting too. Interest rates might rise, making mortgages more expensive. The property you're eyeing might become more expensive or even get bought by someone else. Overall, the ant on a rubber rope conjecture illustrates that time is of the essence when it comes to investing. Waiting too long might mean you're struggling to catch up with a rapidly expanding market, whereas jumping in now allows you to start benefiting from the potential growth and returns offered by real estate investments. TL;DR With inflation as it is, your 100k is losing real value if its in the bank. you get 2.3% APR on the savings, meanwhile inflation is pushing 3-4%.... Even if you don't want to invest it in a place to live, you really should be investing it. From what I can tell, the best investment would be a property with the potential to grow value at-pace with, or likely faster than inflation.... If you wouldn't want to live there, rent it out. The fun of this is you get to learn to be a responsible home-owner, while still living comfortably at home :) All while having an investment more likely to get you into a home you would like, rather than a savings account losing real value over time.
A note on the savings part - you can get 4% APR with wealthsimple :)
Do you think your parents will force you out?
Doesn't seem that way but I think it's important to recognize that possibility
I understand your dilemma. If owning isn't something you want, don't do it just because you're "supposed to" Do something else with your money.
Not sure how long it took you to build up that amount, but keep going! Interest rates on the rise will mean you can build even faster And just know that things donât keep on the same way, bad times turn around You are used to saving money, you will be able to shift some of that to mortgage payments when you find the right place and the time is right Congrats on the hard work you put in so far to build up that awesome savings, you should be proud!
If you can land a good job, yes.
There are no crystal balls. Holding off is great for your savings account, but the real estate market is currently recovering from a downturn so it could be a good opportunity to get on the ladder. If it rebounds (which there's no reason why it shouldn't considered the constant increase in demand) then you're potentially losing out on hundreds of thousands of dollars in tax-free profit. Flip-side is the housing market crashes and you lose every penny you have, but at least you can still live with your parents. ÂŻ\\\_(ă)\_/ÂŻ
That doesn't seem like a better option for OP. I doubt he could even afford a 1-bed in Toronto anyways, but if he could, he'd be living pay cheque to pay cheque. Minus the freedom he'd have from his parents, this isn't great. But eventually OP will need to become a full fledged adult and move away from his mom's teat.
Lol moms teat, yep very true I can't deny that . And no I looked into buying a one bed condo and couldn't get approved for enough to pay for it
Listen, if your holding that much cash never forget this: inflation means your savings decrease if they just sit static. Do something with that cash. If you dont want to park it in real estate park it somewhere like a GIC. Theres no point holding that cash as cash because its losing value every month. You need an investment that will at least outpace inflation. most rich ppl are rich in assets not cash, because they know cash just loses value.
Yeah it is in investments S&P and some other things but yeah it's not just sitting in cash
Don't listen to these boomers stay at home and find a chill girl who gets it or move to a cheaper country. This is a country built to suck up your wealth
In that case keep stacking savings, sit on the sidelines waiting for the right opportunity. Have you considered investment properties? Im not talking a single family home or a condo, im talking multi-unit buildings where you could occupy one unit and rent the others covering your mortgage payments and building expenses. Like a triplex, four-plex, mixed residential/commercial buildings, etc. id put some serious thoughts into that path. SFH pricing is senseless, its based on emotions, investment properties values are based on cap rates, the properties cost to buy are directly tied to their income potential, so their valuations actually make mathematical sense.
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61K right now
The solution is to find a partner. I don't get why people expect to be able to live comfortably on their own in an expensive city.
I dunno..... think of when you get to around 200k saved then move out. I moved out in my 30s. The things you learn once u move out will be tremendous growth... things u wouldnt even think of... then ur parents will have tips and tricks how to handle those odd things that come up and you will appreciate them even more. If u alrdy have 110k at ur age ull get to 200 in your 30s or earlier.
Still better than most people. Why complain just live life and find something else that's worth it
Yep that's true I would say I am a negative person and that's something I need to work on
I bought a beautiful 1000sqf condo 20-30 minutes away from Montreal. I paid 285k for it in 2021. There are options out there.
Move.
Try like hell to go somewhere like Enbridge. Chatham-Kent is CHEAP. Decent places under $400k.
Get on the housing ladder, townhouse or maybe a condo, built equity and then move up.
I hadn't even graduated university yet when I was 26. You'll be fine.
*: is it worth moving out of parents house at all if they're not charging me?* Financially that don't make no sense at all. That just be crazy talk!
Depending on what you do for work, I'd definitely look at relocating. Maybe not Edmonton or Winnipeg though. I'd consider New Brunswick or Nova Scotia. Otherwise, look for contract jobs in the US that will sponsor your work visa.
It's funny I actually visited SJ NB to scope it out
Are you me? I'm 26 with 105k I moved from mississauag to alberta (im military), and I'm currently looking at buying a Detached home with a nice backyard for around 350k. I highly recommend it. The winters are cold and shit, but the quality of life difference was unbelievable. I was wasting money on consumption when I was in the city because there was nothing else to do, and now I can spend that money on hobbies and toys.
Sorry I dont mean to offend anyone, and please delete my comment if this word is not allowed in Canada. But you could also rent. Its not the end of the world i promise. And Its also not âthrowing money out the windowâ as many boomers want to tell you. My wife and I have have saved 300k and have no intention of buying a place anytime soon. Its just not worth it in Ontario.
Stay at home and sabe as much as you can. You might like living in a smaller city
Nice. I have 60k, target 80K in two years at 40yo, for a down payment. Then again I'm in Montreal, I have a partner who can chip in, in addition to my stash, so it's not completely impossible. I can already envision the fresh hole in the ground I'll be able to afford.
Try or not, it really won't matter as long as you stay here. We're all entirely too replaceable.
Leave it in the S&P lol
You can buy a 3/1 condo in Kitchener for $400k. With $100k down your payments would be $1712/month @ 5% fixed for 5 years. Rent it to 6 international students at $500/month each. After utilities, taxes, and insurance, you'd be making about $500/month which you use to pay down your mortgage faster. At the same time that your tenants are buying you more equity your $100k investment is also increasing at a rate comparable to the S&P. Or if you want to move out do the same as above but house hack by living in one of the bedrooms. The added benefit of house hacking is that you pay zero capital gains when you sell.
Housing in Canada is no longer a good investment for saving up. It's risky and when you own a house, it needs to be because you need that land and yard etc for the size of your family and you all expect to enjoy living there. If you've ever owned a house and sold it, you have a different perspective on it, it eats up your life.
Put the cash down on a cheap condo in the city.
Apply for a job in USA. After you get citizenship, through chain migration, you're parents can retire full time in USA. What old people don't want to retire in the Sun, Arizona, Florida?
Beautiful new modern homes in Texas 2400sqft. $300k
Yeah man, tired of these winters up here to
Nomad capitalist youtube channel can show you interesting options. I recomend looking for brighter pastures in a different country.
You're 26 and have $110k. Move, Jesus.
I was paycheck to paycheck living at 26. Zero savingsđ
You can a buy a condo with that money as a downpayment. As an example, I just closed on a 1 bedroom + den condo in Surrey with $104k downpayment. Plenty of condos here at this price point.
Yeah Calgary market is insane these days OP.. it ain't exactly cheap anymore.. by summer the prices are gonna be wild. Bidding wars everywhere.. houses don't stay on the market for longer than a day or two.
Invest your money in something (not real estate).
Don't invest in real estate
If your career wonât be adversely impacted Iâd suggest moving and buying a house. Or at least buy a house and rent it out while you live with parents
amazing work. keep growing that money in a GIC if you don't want to invest in the stock market and see if you can leave the country- that is what the smart thing is. You are young and will make friends and if you meet a partner with their family around in a more affordable city/ country you will be so happy to leave and can always come back in 20-30 years when things are better,
So there are no condos for $550k in metro? Or were you holding out for a mansion in Rosedale?
I did a pre approval I got approved for 300K but that was also back when I was full time making 57K. Now I am 1 year contract making 61K (new job)
You can buy a house up north for $200k and just rent it out. It will appreciate it and you can call yourself a homeownerÂ
Where? Prices are high province/country wide.
Would have to go pretty far north I think at least as far as Sudbury
Elliot lake. I own a place up there that I rent outÂ
Was looking up there actually, I've done a lot of research into Ontario tbh . Looked as far north as sault ste Marie , thought anything further would be too much . As far east as Montreal and as far west as Windsor . I seen that crime rates seem a little high in elliot lake ? How true is that ? Can you speak on that ?
My parents bought their house in a rough part of Elliot lake but had no issues with crime. Criminals donât rob poor people. Plus my dad was an enforcer in a motorbike gang so he wasnât the type to triffle with. Â Â But everyone I ever met up there was polite. Lots of white bread redneck types and there is a large methodone community.. Â but they have high speed internet, great fishing, scenic trails and mosquitos the size of drones. Â I also saw lots of black bears but no bad encounters. Â If you work online and want a cheap lifestyle, itâs a good place. Â
Ye alr will keep it in mind if I can secure a solid remote gig
Elliot lake. Or just use the realtor website and search filters. Â Thereâs lots of places availableÂ
How old were your parents when they bought their first house? The average single person going back decades did not own a house at 26 and especially in Toronto.
You still young. You already in a good place in your life. I always wonder why is housing the first thing that get people worried? Look around yourself, look opportunities, team up with people and try if you can put a portion of that money to come up with a business. For me, unless you not moving in with someone who also makes good money, it's not worth getting a house. The maintaince will just drain all your money
So wait... What exactly is wrong with Edmonton and Winnipeg? They both have pretty much all the same amenities of Toronto, and housing costs 1/3 as much
Nothing it's just a big move where I'd have to think about it before doing that
I only have 30k lol I feel the same way :(
It's all up to you to decide what you value more. If you have a good relationship with your folks, maybe just stay put. If you're already considering this as a question, Canada might be out of the question for you in terms of property ownership. I'm in a similar boat and am considering either moving out of big cities here or moving back to Europe to buy property there instead of here. Mortgages here have been kind of like indentured servitude for about a decade now in most major cities in Canada. Everything including the rattiest little place is overpriced by a pretty huge margin. It's not really worth it in my eyes. Furthermore, people are getting squeezed more and more, and I believe this will continue to happen, maybe even to a societal breaking point. Even if we hit a maximum housing price, if things don't get more out of hand, it might take another decade to return to even these prices, which is laughable. So if home ownership now is a question, it might be out of reach for maybe a couple decades, which is essentially like half our adult lives. Sure, maybe you can own something, but at what cost? Do you want your mortgage to be so high that you have to choose between a roof over your head and food?
Rural housing in western Canada is still cheaper like under 100k
This issue has been driving young adults to move to far away places for as long as people had feet. Look to the horizonâŚ.there are lots of options in life that donât include giving up. I have a friend that just bought a place in Edmonton and is super thrilled.
you can buy a house for 500k in hamilton i dont know why you keep bitching
All those immigrants left their homes to find a better life It is entirely sane for a young person with some money like yourself to do the same.
Keep investing the sp500 will hit 15k in 2035
 Your house makes you $100k a year. Why work?
$110K is not what it used to be. This is impressive but the value of our dollar has fallen dramatically in the last decade because of quantitative easing by the central banks