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newstart

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Hi guys,
I'm fairly new to Toronto and keen to get into the condo market.
I'm employed as an admin assist at Queen's Park earning around $35,000 and have $100,000 which I could use as a downpayment.
I would love to purchase and move in the very near future and was wondering what you guys might suggest to me?
I think this is what I'm looking for -

-A place around $300,000 near the downtown
-Closer than 5 minute walk from a subway (I dont drive)
-Safe for a young woman
-Very close to a real grocery store
-New or fairly new
-Nice view
-Hardwood floors
-Interesting neighborhood for walking

Am I being realistic?

Also, I need a short-term rental starting end of this month until I buy.

I know you guys know this city better than anyone and I'll never make a bigger investment so I need your help! Please. ;)
 
put your $100k into URST and double your money! A much better investment imo. Rent a place and trade away to become a multi millionaire. With $35k single income you can't afford a place in the gta--$100k downpayment or not it's a very foolish thing to do especially at the market top. Double your money every 6 months on the stock market: totally realistic if you're patient and follow my guru:)

Need a place to stay short term? Hmm....
 
Welcome to the forum.

It sounds like you're in a hurry to get your own place. Most new developments which are currently in the "sales" phase won't be built for at least 18 months, more likely two years or longer. Therefore you will more likely want to go to the resale market.

My advice: First, take at least a few weeks to wander around the city and do your homework regarding neighbourhoods. Spend time getting to know a few areas, and the nearby amenities. This will be time well spent, believe me. Then, get a good real estate agent, and find out what's available on the MLS system.

Edit: Further advice: talk to your banker about pre-qualifying for a mortgage. On your income, a mortgage of $200,000 might be a bit above what the bank would be willing to lend you. Generally they would want you to have a "Gross Debt Service" ratio of 42% of your gross income, maximum. This would include mortgage payments, condo fees, and taxes, as well as any other loan payments which you might have. Get a mortgage lender to push around a few of the numbers with you. I suspect you will have to set your sights a bit lower than a $300,000 apartment with a $200,000 mortgage. But don't let that discourage you, there are places out there that will meet your criteria and which you could buy, regardless of somewhat cynical comments to the contrary by some!
 
This thread seems to now be less about realistic suggestions for newstart and more about urbandreamer's genius approach to life, which will now enable him to live in a crappy apartment in a crappy part of Hamilton.
 
Hi Again,
Thankyou Observer Walt. Maybe, or for sure, $300,000 was high. I'll now look at some $250,000 places but first talk to a mortgage broker about how much i could receive. Two places seem very good - Liberty Village and St Lawrence. Maybe a resale is right as 2 years is a long time to wait.
Safety is a main consideration, this city is wack, guys are way too bold its hard to walk around alone.
 
I agree with UD. You can't afford a $200,000 mortgage on $35,000/year.

You'd be paying:

$12,000 in interest ALONE
$2,000 in principal repayment (approx. on 25 year am)
$3,000 in property tax
$3,000+ in utilities
$2,000+ in condo fees
_______
$22,000

PLUS

-repairs
-legal fees on acquisition
-other closing costs

That's probably close to your take home salary. Unless I'm mistaken you probably want to eat once in a while.

You are infinitely better off buying a $200,000 condo in an older building or better yet waiting until either your income increases are you find a partner to share the expenses with you.
 
You could find something (resale of course), but it'll be tiny.

Here's a one bedroom condo right by Queen's Park for $235k. Do a Google search and you'll find the listings. Midtown condos will be cheaper and a 20-30 minute subway ride to Queens Park.
 
Or you could rent. Live in the cheapest place possible for another 5 years, invest your capital in a conservative bank stock (or buy gold--it's going to over $1000/oz) and watch your priorities change. If you're under 30 another 5 years of maturing and finding what you really want (marriage? a better paying job? another city to live in?) is totally worth the "shame" (lol) of renting. Just because it's trendy to buy a condo in your twenties doesn't mean it's smart; being a contrarian does pay dividends!
 
There's a lot to choose from in resale in the $210K - $250K range, which with a $95K down payment should be easier to handle (keep $5K for closing and moving costs). I'm talking 1 bedroom, but close to subway.

Safety is a main consideration, this city is wack, guys are way too bold its hard to walk around alone.
Click to expand...

I walk around a lot downtown and feel most areas are safe, even late at night. I've lived here all my life and never had trouble. I know it's different for a woman, but if you're new to TO, in my experience a lot of newcomers tend to be misinformed about crime rates. I believe TO has the lowest violent crime rate of any of Canada's major cities, and let's not even compare to American cities.
 
Please tell me how a person can afford a $150,000 mortgage on $35k income. It defies logic.

$7,500 interest-only
$2,000 property tax
$3,000 condo fees (min)
$1,000 utilities( min)
$1,000 maintenance and repairs (min)
---------
~$15,000

What the take home on $35k- $25k? So that leaves her $10,000 a year for food, entertainment, prescription drugs, etc?

This gal should be renting.
 
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