Well, i am 25 years old, I just graduated york with a Business commerce degree. Im working at a job making not the greatest money, about 21 an hour. I have already paid my Z and have very little saved, about 15k. I owe no debt or credit card bills. I am up to date. I have paid my car insurance for the next year and have the following year already put aside. I already have all the furniture for the place.

Now help me decide if i can affod a 1 bedroom.

Price 240 asking jane and rutherford.

Is it a good time to buy, or shall i wait a few more months.

I am going to be offering 200

 

its a 800 sq foot condo with a solarium that can be used as a rental income for 400 a month... What do you guys think

 

go 4 it... it's the best time to buy!

good luck!

 

save more... buy after summer

try to hit 20% down so you can avoid the CMHC insurance ****...

 

Nick,

You need to speak with professionals.
Realtor, Mortgage broker and most importantly your lawyer...

If the condo is listed at $240k, don't expect to sign off at $200k.. this is not like purchasing a used car, this is REAL ESTATE..

Maybe if you offered $230 with no inspection.. but you would need to have at least 20-25% down, to avoid the CMHC taxes..
Also, look into the first time home buyers loan.. it can save you some cash.

Good luck !

 

I think you can do better. Condo's are vast in supply and super short in
demand. Are there foreclosure auctions in Canada? Sounds simple, but
many things are different there. I think you cannot realize any true savings
in this marketplace if you are dealing with a legitimate private seller. Find
a distressed asset and capitalize on it.

I am also guessing we're talking Canadian Dollars, correct?

 

WAit for a lil longer, prices are falling by alot.
You'll save huge, just relax for now and wait till prices become stable.
Im also in your shoe, but im playing waiting game.

 

I would shop around and search for a place that you absolutely love. Its a buyers market and you could definitely get a lower price than the asking price, on whatever property you find. Like everyone else has mentioned, try to be able to put a minimum of 20% down.

 

you want to do is hook up with a rich girl (or guy). That way, you can buy whatever you want. I would seriously look into this before spending your own money…

 

This man knows what he's doing

 

It sort of depends on your current living sutuation, are you living with your parents or are you renting? Imo: If your living with your parents, id wait a little longer, the market is unpredictable but i think it will just keep growing and growing. If you are renting, i suggest you get in to the mortgage club. The value of the property will either stay the same or go up, earning you money.
It never hurts to save up and live for free at rents place. If you dont have a gf thats grinding on your *** to get your own place, its even better.

Good luck

 

They will not accept 200. I would say 225 would be a bottom price for a place at 240, but more likely 230 honestly.

Your minimum down payment is 5% so you will need 11500 to meet that plus will need 1.5% of the purchase price for closing costs (Land transfer, lawyer etc) With 5% down CMHC fee will be 2.75% of the mortgage amount. So it will look like this.

230,000 - 11,500 = 218,500 (mtg amount) Plus 2.75% CMHC Fee($6008.75) = $224508.75 will be your mortgage that you will need to carry. CMHC fees can be added into the mortgage as most people don't have that money to pay upfront. Thats based on 5% down and purchase at 230,000.

So can nick123 afford a mortgage of basically 225,000 bux?

21 bux an hour based on 40 hr work week is $43680 annually or $3640 monthly.
CMHC standard for carrying a mortgage is 32% GDS and 40% TDS. (Maybe google GDS/TDS for help here)

Lets say your mortgage looked like this:
MTG 225000 @ 4.49% for 5 years with 25 year am = $1244.07 monthly ($622.04 bi-weekly rapid)
MTG 225000 @ 4.49 for 5 years with 35 year am = $1057.68 monthly ($528.84 bi weekly rapid)

Can nick123 afford this? Does he fit under 32% GDS and 40% TDS? Condo Fees are added into this so I'm assuming 250 a month condo fees:

Based on 25 year AM mortgage setup with 5% down = No. GDS 45% and TDS 45%.
Based on 35 year AM mortgage setup with 5% down = Again NO. GDS and TDS 39%.

Both those calculations assume NO credit cars or other loans. You probably have a credit card even if you have no balance. THe TOTAL DEBT SERVICE RATIO (TDS) assume you have payments on those cars because you could if you own them.

Problems with you buying that condo:
Not enough Income
Not enough Down Payment
Do you have Credit Cards
Do you have Student Loans
Either credit cards or student loans will make your borrowing capacity smaller even if the credit cards are paid at zero.

So what can you afford?
Based on a 35 year amortization, 4.49% rate, 5 year mtg with 5% down in a condo with 250 a month condo fees. A mortgage of 160,000.

The condo fees here are killer for you maybe I could run more accurate numbers if you shoot me your real income and debt info and the MLS for the house you are looking at. Basically to afford this house you would need about 60,000 a year income to make it under the wire.

Sorry my posts kinda goes on but I was doing the calculations as I was typing working it out for you. For reference and disclosure I work for a Bank and am Financial Services Manager. (So the manager of all the Advisors on the floor of a branch)

Calculator I used for TDS GDS http://www.listingprime.ca/info/calc...calculator.asp

 

15k saved is not a little if your 25, most 25 year olds have like 200 bucks in there accounts and are paying 2 -3 different loans, your doing good, you can afford it

 

I am looking at getting a place downtown too, but I am going to wait till after summer.

 

LOL!
I think Nick owes Jim a beer...

 

Haha. Nah.. I'm off work right now from my 7th surgery on my leg after a motorcycle accident 4 years ago (ride safe yeesh..) When I saw this thread I thought, I need to keep my brain going like normal so I spent some time on a post.

Feel free to ask my any additional questions on any particular area and I will elaborate. I spilled out a lot of info in a short post. I don't have a whole lot going on right now. My day consists of Day Trading a few stocks and watching TV and of course posting on my350z.com lol...

 

wtf! I hope you get better soon man.

Yeah, you need more then a beer!...
NICK!'

 

rhymes...

trading a few stocks, watching teevee
and of course posting on my 350 zee

 

I dont think he can drink beer when recovering, I wasn't allowed to drink when I broke my hand

 

Why buy a condo when you can buy a boat!