[cdr108]

Thanks to everyone for the great suggestions and thank you BOBOB for the great listings. That's exactly the type of condos (in term of size and location) im looking for.

Cdr, regarding your questions:

- Nothing , I'm living with my parents
- $50,000 , about 3600 a month
- As I said , I won't be owning a car if I were to buy a condo. But currently i am paying about 700 dollars a month on car expenses.
- In terms of space, I'd rather live in something over 500 sqft

I don't know what rentals cost in North York,

but if you work dt and would be willing to live in an older rental building (20 yr old) for about 1 year dt area you can find a large studio/jr. 1b (~500-600 SF) for under $900 incl, which would only be abit more than your monthly car expenses, all within walking distance to places and your work.

There are many within TO like Yonge/St. Clair, Yonge/Eglinton, Yonge/Bloor/Carlton/Sherbourne ...

Save about $1500+/m = $18,000+ in a year for a larger downpayment.

IMO condo prices won't go up within that time;
you can gage how much space you really need;
figure out and check the desired area(s) you would like to live in (even though you mention NY);
your income will be potentially bigger - based on your current income, you would qualify for $175-200K mortgage.

How long would you plan to live there?

A well laid out 1b+d (~650-750 SF) could accomodate you for a long time even when your circumstances change like having a partner move in; and if the den is big enough, you could rent it out if you want/need income.

Personally, I think buying something too small, living there under 5 years and selling to upsize is a waste of money for realtor commissions, land transfer taxes, etc.

 

[urbandreamer]

Yeah, cdr108 (what does your name stand for? I keep thinking of my favourite Toronto radio station from the mid-90's, Energy 108...) I agree the way to go is to rent a sub-$950 apartment downtown, get a bicycle, and avoid spending huge amounts of money on clubbing, taxis, etc. $AVE for the amazing real estate deals that will be coming in 2010+....

 

[radioheadmike]

I don't know what rentals cost in North York,

but if you work dt and would be willing to live in an older rental building (20 yr old) for about 1 year dt area you can find a large studio/jr. 1b (~500-600 SF) for under $900 incl, which would only be abit more than your monthly car expenses, all within walking distance to places and your work.

There are many within TO like Yonge/St. Clair, Yonge/Eglinton, Yonge/Bloor/Carlton/Sherbourne ...

Save about $1500+/m = $18,000+ in a year for a larger downpayment.

IMO condo prices won't go up within that time;
you can gage how much space you really need;
figure out and check the desired area(s) you would like to live in (even though you mention NY);
your income will be potentially bigger - based on your current income, you would qualify for $175-200K mortgage.

How long would you plan to live there?

A well laid out 1b+d (~650-750 SF) could accomodate you for a long time even when your circumstances change like having a partner move in; and if the den is big enough, you could rent it out if you want/need income.

Personally, I think buying something too small, living there under 5 years and selling to upsize is a waste of money for realtor commissions, land transfer taxes, etc.

I may have to consider that. It does sound like a good idea.

Thanks

 

[JayBee]

Yeah, cdr108 (what does your name stand for? I keep thinking of my favourite Toronto radio station from the mid-90's, Energy 108...) I agree the way to go is to rent a sub-$950 apartment downtown, get a bicycle, and avoid spending huge amounts of money on clubbing, taxis, etc. $AVE for the amazing real estate deals that will be coming in 2010+....

How are you so sure that he'll get such a great deal a year/2 years from now? People keep saying this....but what proof do you have that the prices of these condos will go down. And how far down do you think they'll drop? People said prices would drop now and they barely have.

 

[cdr108]

How are you so sure that he'll get such a great deal a year/2 years from now? People keep saying this....but what proof do you have that the prices of these condos will go down. And how far down do you think they'll drop? People said prices would drop now and they barely have.

b/c the global recession will continue for at least another year;
TO's glut of condos under construction will be registered;
we've had 10 years of unprecedented appreciation beyond historical norms, therefore a contraction is due by ~20%.
ps - i forgot increased unemployment.


I agree that prices haven't moved much but that's typical since RE is less price responsive.
I've noticed that many listings are still asking peak 2007/2008 prices ... those same listings have stayed on the market for MONTHS and are priced unrealistically.
From what I've observed, some which were re-listed ended up being sold for 15% less than original list price.

Just look to the US and the same things happened there ... people thought things were okay and not willing to drop prices ... those same ppl have reduced $$$ several times over and no one is even interested now.

 

[kennyx]

b/c the global recession will continue for at least another year;
TO's glut of condos under construction will be registered;
we've had 10 years of unprecedented appreciation beyond historical norms, therefore a contraction is due by ~20%.

I agree that prices haven't moved much but that's typical since RE is less price responsive.
I've noticed that many listings are still asking peak 2007/2008 prices ... those same listings have stayed on the market for MONTHS and are priced unrealistically.
From what I've observed, some which were re-listed ended up being sold for 15% less than original list price.

Just look to the US and the same things happened there ... people thought things were okay and not willing to drop prices ... those same ppl have reduced $$$ several times over and no one is even interested now.

Just out of curiosity, has anyone looked at the case-schiller for NY, Boston, Chicago, or even Portland? (rather than the entire composite?)
Just wondering there have been major drops seeing as there is usually a typical lag between the two countries, and also taking into consideration that price drops in the U.S. will probably overshoot on the downside relative to what we'll possibly see here.

 

[cdr108]

Just out of curiosity, has anyone looked at the case-schiller for NY, Boston, Chicago, or even Portland? (rather than the entire composite?)
Just wondering there have been major drops seeing as there is usually a typical lag between the two countries, and also taking into consideration that price drops in the U.S. will probably overshoot on the downside relative to what we'll possibly see here.

http://www2.standardandpoors.com/spf/pdf/index/CSHomePrice_Release_033114.pdf

see page 3 for a chart of the various Metropolitan Areas.
Unfortunately, it's only for 1 year comparison ... you can find more data here:

http://www2.standardandpoors.com/po...s_csmahp/0,0,0,0,0,0,0,0,0,3,1,0,0,0,0,0.html

From the peak in the second quarter of 2006, the 10-City Composite is down 30.2% and the 20-City Composite is down 29.1%.

 

[noodlesalad]

My suggestion would be to buy something within 20 minutes walking distance of your workplace.

No metropass save $100/month - that $100/month would pay for approx $17,000 mortgage, 5%, 25 yr am.

Essentially, allowing you to buy a more expensive property without really giving anything up.

You'll be walking to work - very enjoyable spring/summer/fall .. not so easy in the winter but the underground PATH system branches out quite far.

Have a look at craigslist - toronto - real estate - type in "Assignment" as your keyword and see if anyone is looking to unload just before closing. You should have quite a bit of selection in the $190k - $230k range either on craigslist or mls. Try Cityplace (spadina/front), waterpark (bathurst/lakeshore).

 

[slickpete83]

idea !!

just find a room mate or rent a room / sublet http://toronto.en.craigslist.ca/ , you'll end up paying $500/month , plus you can split your internet bill 50/50 and other monthly costs , that's less then your commute money and you''ll save up tons of $$$$ for a nice big down payment ,

let's face it , if you don't put down lots of money on a property , you'll just be paying down all interest , the banks love that

 

[TrickyRicky]

Rent. I don't see any value in purchasing in your scenerio. Don't waste your time commuting and move out of your parents place if only to gain more experience living independently. Get rid of the car. Save some more money but don't focus on savings over pursuing other avenues of personal development.

 

[Goodyer]

i think you could get something for 240 with ease depending on your credit

you make 10k more than me (i had a 36k down paymnt) and im able to live in a place i got for 240 with comfort at 219 fort york blvd (good prices IMO at waterpartk city 231/219 fort york - and you can walk to work)

 

[cdr108]

i think you could get something for 240 with ease depending on your credit

you make 10k more than me (i had a 36k down paymnt) and im able to live in a place i got for 240 with comfort at 219 fort york blvd (good prices IMO at waterpartk city 231/219 fort york - and you can walk to work)

wow, that's scary ... you make $40K and the bank loaned you $204K+???

that's 5+x earnings ... so much for conservative canadian bank lending practices.
what happened to the standard 3.5x earnings criteria ???

 

[radioheadmike]

I'll probably rent and then buy later on.


Thanks everyone for the suggestions

 

[JayBee]

wow, that's scary ... you make $40K and the bank loaned you $204K+???

that's 5+x earnings ... so much for conservative canadian bank lending practices.
what happened to the standard 3.5x earnings criteria ???

It's not that hard to believe.

 

[nfitz]

It's not that hard to believe.

Though if that happened a lot, you'd think the entire financial system would melt down ...

... uh, hang-on.

Personally I find 2.5x gross income enough of a burden ... though perhaps if I hadn't done a 20-year mortgage with accelerated payment (which makes it about 15 years given that the variable rate is now 1.6%).