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  Canada Immigration Forum > About Canada > Life > Comfortable cost of living
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Comfortable cost of living




Loser
Senior Desi
Member since: Sep 04




Posts: 1052
Location: Nice ,USA


So you used up 50,000 $ in rent in four years without creating equity ?
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You know you are a desi when ........ You spew forth the virtues of India, but don't want to live there...............You've never had a tanning salon membership

 
Post ID: 90213 23-11-06 15:10:38
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Maharaj
Senior Desi
Member since: Oct 02




Posts: 1721
Location: Brampton


Quote:
Originally posted by Loser

So you used up 50,000 $ in rent in four years without creating equity ?



I would have spent 50k more to maintain that 'Equity'.

I chose to save that 50k. I haven't bought the house thinking of selling it in 'n' years.

I may be the only one (not only just first desi - I don't know) to think like this - but hey it made sense to me. When I came here - I did not know if GTA is THE place for me (But thats another thread).

'Equity' is the word that I always hear in such discussions. Now if I come to think of it ... 3-4 years back buying in AB, without much down payment was sense. But than GTA housing market was never really down. I am not good with Numbers, Realtors might have better idea on it.

I am giving percpective that I viewed and lived. I never looked at the 'Equity' side of it. Whats the use of 'Equity' which you cannot enjoy and in fact which comes in way of your Life ...



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Mumbai Maazi Ladki ...

 
Post ID: 90214 23-11-06 16:11:52
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Fido
Senior Desi
Member since: Aug 06




Posts: 5266
Location: Canada


Guys ,

I am a newbie here . Pray tell me , if someone is paying CAD 1000/- at 100% mortgage for 25 years , what worth of a house can he expect ?

If say CAD x is the current worth of the house and we spend 12 * 5 =60 K in 5 years how much resale is expected based on the past 5 years GTA average.

Are there any hidden charges also - monthly or otherwise . I know this might have been discussed before but since this topic is running I thought of putting in my query for want of minimum worded replies .

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Fido.

 
Post ID: 90259 24-11-06 09:44:02
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chittesh
Senior Desi
Member since: May 05




Posts: 448
Location: Here and There


You will get a 170K mortgage for that amount.

You will be able to find a condo apt in Mississauga (1 bedroom) or a maybe Condo townhome in Brampton.

The catch is that there will be condo fee attached to such a purchase varying from 200$-500$ pm

As there is fees attached and these fees go up every year the appreciation is not so much as freehold property.

After 5 years your 170K property may be worh max 180k is my guess

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Live and Let Live

 
Post ID: 90260 24-11-06 10:44:12
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Fido
Senior Desi
Member since: Aug 06




Posts: 5266
Location: Canada


Thanks Chittesh ,

Assuming that one can get a town house in that money , how much are the service charges in that case ? If they are near to $200/- - $300/- then whats the gain ?

Does that mean that if you have paid 60 K in 5 years in mortgage , you will get that money back when you resell the house ?

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Fido.

 
Post ID: 90284 24-11-06 16:36:51
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chittesh
Senior Desi
Member since: May 05




Posts: 448
Location: Here and There


Your address indicates that you are in Halifax, i dont know about there but in GTA (Miss, Brampton, North York, Oakville, Milton) the townhomes you will find for 170k will be very run down unless u go for a 1Bedroom apartment. This may not be suitable if you dont have a family.

If you pay rent for 5 yrs ur living cost is 60k for 5 years.

given that the economy dosent go down suddenly and the house appreciates 15K in 5 years. After paying mortgage you would have paid off atleast another 15k in house value, so you profit 30k when you sell the house.(15k paid off and 15k appreciation)
But when u own you pay utilities, condo fees and property taxes which will be around 600pm. This adds up to 36000. So you are actually 6K in negative. You only make a profit if the home price go up 21K or more which is unlikey in the type of home you have.

Buying makes sense in the following scenario:

You buy a freehold property (town/semi/detached) for 320K.
Renting it will cost you 1600K+ utilities so thats 1850pm.
For 10 years u pay 222K and own nothing.

Say you buy a 320k home with 0 down the mortgage payment will be 1750 (for 30yr) pay property tax+util which will be 400pm. So in 10 years you spend 260K

At the end of 10 years you would ahve paid 70K off the mortgage and the house can go up by another 100k minimum, so you make 170K.

Now you are spending 260-222 = 38k more when you buy but you have made atleast 170K more..
.
So buying makes a lot of sense.

morever if you rent all your life you would have owned nothing if you retire...

But it is very important to buy what you can afford..a lot of desis live house poor..they spend 50% of their after tax income on mortgages and sometimes dont have money to fix their car..

this creates a problem not only for them but for others as house prices become high and they will not sell till they get a good profit so less houses for sale and prices go up again...

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Live and Let Live

 
Last edited by: chittesh on 25-11-06 04:10:13
Post ID: 90307 25-11-06 04:07:31
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Fido
Senior Desi
Member since: Aug 06




Posts: 5266
Location: Canada


Many Thanks Chittesh ,

Your post gives a very deep insight into the equations of mortgaging / renting which a newcomer is unfamiliar with . Overall I gather one should make a buying decision if one foresees stay in a place for at least 5 years .


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Fido.

 
Post ID: 90365 26-11-06 13:40:26
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chittesh
Senior Desi
Member since: May 05




Posts: 448
Location: Here and There


the most profitable situation is when you buy a NEW (unbuilt) home and live in it for 5 years. The reasons are

1) If you buy it unbuilt you will get a better price than a new home at the same price.
2) a 10 yr home will sell for less than a 5yr home, so if u buy a 5yr home not only u pay more but also u sell for less as the home is 10yr old.

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Live and Let Live

 
Post ID: 90391 27-11-06 10:09:55
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subbu1962
Junior Desi
Member since: Sep 07




Posts: 17
Location:


I am an indian chartered Accountant. What are the chances of me getting into accounts or finance profession there? I am landing in April 2008. Got the PR. Is it absolutely necessary to get the canadian qualification?

 
Post ID: 108536 01-10-07 03:55:38
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subbu1962
Junior Desi
Member since: Sep 07




Posts: 17
Location:


How to live in an "unbuilt" home? What does it mean? Please explain.

 
Post ID: 108537 01-10-07 03:57:06
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