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FuturePorscheOwner
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Buying a Condo only 5x income?

Wed Nov 09, 2011 5:15 am

Hi All,

I wanted to ask the bears/bull, I only make about $40-45k, what the typical individual makes. Would it be wise for me to buy a condo that was 5x my income. Is this too high or too low in your opinion?

Note - Post edited, Hi folks, please note I have edited my post, I have no personal malice towards someone who is a bull/bear in real estate. Please note, I am just asking an honest opinion, I am debating buying a place, still sitting on the fence. I am approved for up to $275,000, but I have decided to play it safe, with putting almost 20% down.
Last edited by FuturePorscheOwner on Wed Nov 09, 2011 4:42 pm, edited 1 time in total.
 
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Re: Buying a Condo only 5x income?

Wed Nov 09, 2011 6:00 am

I wanted to ask the bears/condos, I only make about $40-45k, what the typical bear makes.
Lol! The BS just never stops.
the dogs bark but the caravan moves on
 
gse36
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Re: Buying a Condo only 5x income?

Wed Nov 09, 2011 6:32 am

The bears I know are CURRENT Porsche Owners.

lol
 
robert james
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Re: Buying a Condo only 5x income?

Wed Nov 09, 2011 7:24 am

Hi All,

I wanted to ask the bears/condos, I only make about $40-45k, what the typical bear makes. Would it be wise for me to buy a condo that was 5x my income. Is this too high or too low in your opinion?
I am a typical bear and that is absolutely hilarious ,, a typical bear making 40-45 K a year.. Between mineral rights in the Bakken formation and oil leases on my land in SE Sask. it takes about 18 to 19 days to make $43+K..That does not include the $90 K of organic wheat I just sold plus the yearly land rental from the land..Not all bears live in dark dingy basements.. I think condo s are about to get cheaper but that is just my humble opinion... They are certainly cheaper here in the Okanagan ,,50% off in one case in a new building..I would not feel too sorry for the bears if I were you..I was just as happy before the oil wells and the money so the Porche might not do it for you ..Zero debt is happiness,, for me anyway ..Good luck with the Porche..
 
fishguy15
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Re: Buying a Condo only 5x income?

Wed Nov 09, 2011 7:41 am

Your not a bear. So does that mean the typical bull income is $40-45k?
 
HomelessinSD
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Re: Buying a Condo only 5x income?

Wed Nov 09, 2011 8:34 am

Hi All,

I wanted to ask the bears/condos, I only make about $40-45k, what the typical bear makes. Would it be wise for me to buy a condo that was 5x my income. Is this too high or too low in your opinion?
Honest question: How do you possibly survive or get ahead on $45k / year living in the lower mainland?

It seems safe to assume that you are a single, young male. At $45k you probably net close to $3000 / month. Do you still live a home? Again, honest question.

If you lived on your own, I'd guess some of your fixed monthly expenses would be along the lines of:

Housing: $1,000 (rent + utilities)
Cell phone: $70
Internet / Cable: $80
Gas: $160
Car Insurance: $90
Groceries: $500

That takes you up to $1900 / month without any entertainment, clothing, car payment, haircuts, eating out, going on a date, saving, etc. How do you possibly think you can afford to buy a condo for $225k?

Assuming you had $50k to put down, a $175k mortgage at 3.75% over 25 years would cost you $900 / month. Strata fees would be at least $100 / month. Then you have property taxes, home insurance, utility bills, potential repairs, etc. Your condo is going to cost you $1500 / month or half your disposal income. I would suggest you get a roommate.

You provide a perfect example of affordability.
 
westcoastfella
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Re: Buying a Condo only 5x income?

Wed Nov 09, 2011 8:55 am

I'm guessing FPO lives at home. I don't know how people can live well in the LM on double that income...
 
extirpated
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Re: Buying a Condo only 5x income?

Wed Nov 09, 2011 8:57 am

wow, funny this morning I was just reminiscing about how in 2001 there was a 5 bedroom house in strathcona for around $200k that my intuition was screaming at me to buy. too bad I was only 29 and got this sexist fatcat realtor who is probably on this forum who told me in a nutshell "oh, you're a woman unless you're really handy you can't possibly handle owning a house, here let's look at condos" if I'd listened to my gut instead of to him, I would have cleared 500k in a few years. I did okay on the condo, and well in the other provinces I've moved to (better quality of life I'd say though I miss the mountains) but still... anyhow follow your gut that's my advice! getting a roommate is a great suggestion! live on lentils and rice, they're nutritious,cheap and free of gmos. shop at value village. commute by bike or transit. there are plenty of ways to save $ if owning your own home is your priority. my husband in my current homeland managed to save enough $ to put down on a duplex with a lower income than that. now we're in the process of building a fourplex, see, even meek hippies can inherit the earth. good luck!
 
c2128
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Re: Buying a Condo only 5x income?

Fri Nov 11, 2011 11:58 pm

Hi All,

I wanted to ask the bears/condos, I only make about $40-45k, what the typical bear makes. Would it be wise for me to buy a condo that was 5x my income. Is this too high or too low in your opinion?
Honest question: How do you possibly survive or get ahead on $45k / year living in the lower mainland?

It seems safe to assume that you are a single, young male. At $45k you probably net close to $3000 / month. Do you still live a home? Again, honest question.

If you lived on your own, I'd guess some of your fixed monthly expenses would be along the lines of:

Housing: $1,000 (rent + utilities)
Cell phone: $70
Internet / Cable: $80
Gas: $160
Car Insurance: $90
Groceries: $500

That takes you up to $1900 / month without any entertainment, clothing, car payment, haircuts, eating out, going on a date, saving, etc. How do you possibly think you can afford to buy a condo for $225k?

Assuming you had $50k to put down, a $175k mortgage at 3.75% over 25 years would cost you $900 / month. Strata fees would be at least $100 / month. Then you have property taxes, home insurance, utility bills, potential repairs, etc. Your condo is going to cost you $1500 / month or half your disposal income. I would suggest you get a roommate.

You provide a perfect example of affordability.

He can get 35 yr amortization and currently fixed - var is at about 2.5% so that would cost about $625 / month only and part of it is paid toward principle instead of $1000 all throw into river. I know interest rate won't stay low forever but at least it will stay low for quite a while. Getting a roommate is a good option.

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