But the older I get and the longer I live here, the more I realize that home ownership in Toronto is pretty close to impossible.
Such is the life of living in Canada's second-most expensive city.
How expensive you wonder? Earlier this month, various news outlets reported that the average price of a detached home in Toronto proper is over $1 million dollars. And we're not talking mansions in the Bridle Path either or even the decent sized homes near good schools. We're talking about modest two-storey homes that needs some renovation work in so-so neighbourhoods with okay schools.
One million dollars.
If you can't quite wrap your head around the million dollar price tag, think of it in terms of the down payment you'll need for the house, which generally recommends that you have 20% down so you can avoid paying the additional cost of insuring your mortgage against default with the bank.
In that case, how long would it take you to save $200,000 in actual dollars in order to buy a million dollar home? Because that's how much you'll need in order to buy one.
If your answer to that is "oh, that's easy," either you make a heck of a lot of money, are a wicked saver or completely detached from reality. Speaking for myself however, as a person with an entry-level salary and a whack of student loan debt to contend with, my answer that amount is "gulp!"
Seriously, I'm looking at $10,000 saved for my future as a huge feat. But $200,000? For a house with a mortgage in Toronto? Yikes. In some parts in the States (note the point some parts, meaning not to include California and New York generally speaking), you could get a pretty decent deal for that amount of money without any mortgage!
Which brings us back to Toronto and the headache that is the traffic in this city, which is to say, the price of homes in Toronto is both caused by the traffic as well as the cause of traffic. A decent chunk of the people in cars in this city clogging the expressways in the area are people who live outside of Toronto, not by choice, but due to the fact that most of them finds that it's more affordable and manageable for them to buy a home outside of the city limits and commute in for work for however long the commute they chose takes north, west or east of the city.
But for some, is it? Is the stress of driving and the time wasted stuck in traffic and the early hours and late days to travel to work worth it? For some, it isn't and is the impetus for them wanting to move into the city limits. And there's enough of them to make these homes astronomically expensive.
Hey listen, I can understand the appeal and the draw that is home ownership. And frankly, it would be a huge dream to have my own home. But not at that price, frankly, which is a price that makes my eyes water.
As far as the "decision" to rent or to buy is concerned, I'm more than willing to rent for the rest of my life. I mean, sometimes renting can be the difference between your kid going to a great public school or not, especially in this city, and as a result is not nearly as bad as some people seem to like to make it out to be. There's plenty of pros and cons for both, so it comes down to your values. And what you're willing to sacrifice throughout life.
In that case, how long would it take you to save $200,000 in actual dollars in order to buy a million dollar home? Because that's how much you'll need in order to buy one.
If your answer to that is "oh, that's easy," either you make a heck of a lot of money, are a wicked saver or completely detached from reality. Speaking for myself however, as a person with an entry-level salary and a whack of student loan debt to contend with, my answer that amount is "gulp!"
Seriously, I'm looking at $10,000 saved for my future as a huge feat. But $200,000? For a house with a mortgage in Toronto? Yikes. In some parts in the States (note the point some parts, meaning not to include California and New York generally speaking), you could get a pretty decent deal for that amount of money without any mortgage!
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| This kind of home in Toronto? ONE MILLION DOLLARS! |
But for some, is it? Is the stress of driving and the time wasted stuck in traffic and the early hours and late days to travel to work worth it? For some, it isn't and is the impetus for them wanting to move into the city limits. And there's enough of them to make these homes astronomically expensive.
Hey listen, I can understand the appeal and the draw that is home ownership. And frankly, it would be a huge dream to have my own home. But not at that price, frankly, which is a price that makes my eyes water.
As far as the "decision" to rent or to buy is concerned, I'm more than willing to rent for the rest of my life. I mean, sometimes renting can be the difference between your kid going to a great public school or not, especially in this city, and as a result is not nearly as bad as some people seem to like to make it out to be. There's plenty of pros and cons for both, so it comes down to your values. And what you're willing to sacrifice throughout life.
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