Post by hannamaren on Oct 11, 2012 19:15:06 GMT -5
We could buy a house for $700k along the subway line (in our dream neighbourhood but small square footage) and it would take 20min to get to work. It would be the top of our budget, we could just afford it with our current budget.
Or we could buy a house for $450k and get a second car and drive to work in 30-40 (H has free parking, my situation is unknown) the house would be bigger too. Our budget would have at least $500 per month extra even with the car.
The subway is often delayed. Not to sway one way or the other.
House 1 would be more walkable to groceries, post office, etc. House 2 would be about 15-20minwalk to those things.
Post by hannamaren on Oct 11, 2012 19:40:16 GMT -5
Well you can put rent on your tax return(and not mortgage) , but it doesnt really make that much difference to our overall refund.
If we rent for another 5 yrs, we arent building any equity and I know that rent isnt throwing away money, but with low interest rates and house prices going up up up in my city, I regret not buying 5 yrs ago. There will be a crash or stabilization in the market, but only in the condo market. Houses are supply and demand. The supply is small. Almost every house gets multiple offers.
What makes it a 5-7 year house? I'd be hesitant to buy at the top of my budget if I wasn't planning to stay longer.
Everything we can afford is small (top of our budget) so we think we would outgrow it Or it isnt in a good school district. 5-7 yrs that will matter more.
It would still be Toronto proper, maybe High Park or the Beaches or Danforth area. I am shocked at the nice houses in these areas. We are unsure or Roncesvalles.
I wish there were as many people in here who lived in Toronto as there are that live in DC.
My DH & I both hate city driving & commuting...so we paid premium (though we got an awesome deal) to be in the middle of the city. We still drive but it's much more minimal. So I'd choose #1.
Post by sillygoosegirl on Oct 12, 2012 0:07:40 GMT -5
I would keep renting too, and save as much as you can for a big down payment. 5-7 years is risky for recouping your transaction costs, and interest rates will probably be higher, and that will depress prices for all kinds of dwellings.
Or, buy something you can remodel/add to in 5-7 years and make into the house you want, while keeping your low rate mortgage. If you can afford a house for which this would be feasible.
What are these tax incentives you speak of? We're low income by gov standards, but we've never had to give record of rent paid to our tax preparer. I hope we aren't missing out.
Could you do the better location and remodel in 5-7 years? My friends (who are pharmacists in the Toronto area ironically) have a big 3 phase remodeling plan for their "too small but perfect location" house. Right now they are adding a bathroom, soon they will add a new kitchen/living room, and phase 3 is more bedrooms as they need them.
Would you consider moving out of Toronto proper to one of the areas outside but still on the subway or Go train lines or would that be too long of a commute for you & DH? My son & DIL live in Oshawa and he commutes to dowtown TO - it takes about an hour. I live in Peterborough and it amazes me the number of people that live here and commute to Toronto every day - it's about a 1 1/2 to 2 hour commute depending on if they drive all the way in or drive to Oshawa and take the Go train into the city (not that I'm suggesting you move here - but it would be nice to have a GBCN "friend" close by!! ;D)
I would never consider purchasing a home at the top of our price range.
Then why would you have a price range? We are looking for a house between 400-700k. This is not what we are preapproved for, it is what makes sense for our budget. We CAN afford it, it just means we have to be more aware of our purchases. Unlike now where we just spend when we want.
I think I just have to be patient. It might take a lot longer than I thought to find a house.
And kathybela, that is sadly too far. And the gotrain is not reliable. At least if the subway is stuck, a taxi is affordable. If the gotrain stops, then what? I know people do it, but I would hate it.
We dont really know that we will move in 5 yrs but with the houses we can afford now, we think we might outgrow it in that time. However, in 5 yrs the bigger houses will be even more expensive and maybe still too $$$ for us. But unlikely a new area.