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You must have had a private mortgage. No bank would lend money on that tight a plan. Also, why would anyone want to be a prisoner to their mortgage like that?
 
Perhaps he changed jobs and had significantly less income after he got the mortgage ... but continued to pay it off at the original level? Perhaps he also made extra payments on his mortgage - I did that with mine, for the two years that I had it, in order to make the damn thing go away quicker.

A combination of frugality for several years in order to acquire a large downpayment, and frugality for the time that you have a relatively small mortgage in order to pay it off, is a sacrifice that some consider worth making.
 
I suppose. I've never understood the appeal of being house poor, myself. I'd hate my apartment if I were pouring my entire income into it and couldn't go to the movies, or on vacation, or out to dinner.
 
urbandreamer said:
^Finally you proved my point: buying a GTA condo simply isn't affordable to anyone earning less than $50,000/yr (being generous--really, $70k more realistic if you don't want to eat at soup kitchens for 10 years!)

Now let's face the music: could a $35,000 salary buy a $95,000 home in Hamilton with a 25% down payment? My proposal--assuming you have $100,000 in cash like the girl says she does but a $35k income--buy two cheap ($95,000) Hamilton houses--or a combined price of $200,000--with a 25% ($50k) down payment. Rent out one home as a rooming house or 3 apts ($1300) as a "slum lord" (ie minimal maintenance) and live in the other house with 1 attic apt rented out for $500/month.

As a non-mathematics whiz, the numbers are making me dizzy so I ask a fellow guru: would rental house income(conservative estimate $16000/yr)+$150,000 mortgage+owner-occupied dwelling (with one rental unit producing $6000 income) result in living for "free?" Or at most, $4000 of $35k income devoted to housing costs.

Judging by the $200,000 condo answer above, I'd guess yes!

Now in Hamilton, how much do you think a $95,000 house will be worth in 2030? $200,000?

From an investment pov and living on a moderate income does my plan make any sense?

thx in advance:)
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Hamilton is a sh*thole that will continue to deterioate. Any purchase there will not keep up with inflation. By the end of next decade it will start to resemble Detroit. Avoid. Avoid. Avoid. Alternatively, value any investment as with a terminal value of zero.
 
Hamilton is my kinda town! Unpretentious different misunderstood and one day will be in demand! The fact Vultur disapproves (I get the impression you're a typical conservative Torontonian?) proves I am right: Hamilton is the place to be if you want to live cheap, have money for pleasure and investing, and perhaps take advantage of the next gen of suburban kids (those growing up today in places like Milton, Brampton, K-W, Oshawa) that will be priced out of Toronto but are sick of suburban living. 2030 Hamilton will be the new ????

Bold, contrarian and cheap: c'est moi!
 
As a former Hamiltonian I actually have some sympathy for the above diatribe. As with anywhere else, watch which neighbourhoods you buy in. Send us a report from the "war zone" in due course!! :D
 
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