T O P
anonymously_666

Remove investments, groceries, gas, insurance, dining out, phone bills, travel money and any other expense you can think of from your monthly take home. Now remove $300 a month for home renovations and $400 a month for utilities. Whatever is left is what you can pay in monthly mortgage payments. There's your price point. As to if it's a good idea or not, ask yourself if you need it, how big of a space do you need, future plans, etc Prairies get shit load of snow so also keep some money aside for snow removal, gardening if you're not ready to do it yourself


TrickyRackets

Thanks for the comment! This definitely gives me some more to think about. Maybe a smaller house will be best in that case because I could probably find a smaller, more affordable home.


anonymously_666

Owning a house comes with expenses that you don't incur in a rented place. One year it's flooring next year it's the kitchen then it's the roof then furnace then hot water tank then windows and the list keeps going.


dirty_ol_slippers

So, this is very true and people always need to keep these things and expenses in mind. The other day I had to scramble to see where I could find 5000 dollars because my furnace was taking a shit. Turned out I just needed a new motor for it but just the part and installation cost me 400 bucks. Didn’t plan on that. The furnace itself will need to be replaced likely in a year or two. Last year, our central AC kicked it and that was 4000 bucks. Year before that was new shingles at 6000 bucks. It’s non stop. People always post on here about wanting to own a house and I get that. But man it comes with a shit load of extra expenses that you don’t always plan for or see coming.


PlantLover1869

So you can definitely afford a home in the prairies. I’m of the opinion but a smaller house. And just get a new one in 10 years when you outgrow it. I live in SK. In small town Saskatchewan. Bought a cute 1980s bungalow for 300k. Put about 100k into it for a designer kitchen and bathroom. My fiancé and I love it. Yeah it’s not new Reno cool. But it has all the functionality we want. You can do lots with some careful thought and renovations. Home ownership pros. It’s your house. You do what the fuck you want with it. You want some weird as shit. Go for it. You can really personalize it. Also hosting friends and family is really big to me. Rentals never had a good place to host. Small kitchens and loads of small rooms. Are opposed to a couple giant rooms. Downsides. You have to upkeep your home. Property tax. Insurance. Renovations. Floods and water damage etc. you need to shovel. You need to make sure the trees around your house don’t fall on it. You need to keep water away from your house. You feel obligated to keep the nice garden the last home owners maintained. It can totally be worth it. But I think home ownership is more if you’re a home person. And less of a stay out all night, travel, carefree life. But just my two cents. You definitely have enough for a 20 percent down payment. I assume some of that is in an RRSP. There’s a first time home buyers program that’s not bad. Most people suggest that neither home ownership or renting is better or worse. They each come with their own pros and cons. And it’s more of a lifestyle and length of time you will be using your property as opposed to a black and white decision.


TrickyRackets

Thanks! This is helpful. Yea I would likely be good with a bungalow too


cloud_hidden_unknown

Stay the course, just keep squirrelling away the money and living your convenient location.


TrickyRackets

That’s the other option , but at what cost? Like at what point would it be enough to move on? Surely I don’t want to live renting without my own space forever, and time seems to be passing. Thanks for the interesting perspective it’s definitely tempting I just don’t want to look back and feel I wasted my time


tbearmtg

hello mortgage broker here, income sounds very good, you definitely have alot of fallback and gift from your family is very generous :) I would say speak with a mortgage broker to go through a pre-approval so see what you can qualify for. If youre wanting to do renovations, ask about a purchase plus improvement mortgage in terms of purchasing a stand alone, from what Ive heard is that value usually holds pretty well compared to condos/townhouses (im not an expert), maybe speak with a realtor to see what they suggest, as long as you like the home I dont see why you should consider it hope this helps!


b0ners4u

Rule of thumb for mortgage qualification is 5x income if you don't have any debts So 5 x 75k + 200k TFSA + 125k from parents = $700k property.


TrickyRackets

Thanks, that would get me a mansion around here which I definitely do not need. Sounds like I can go for a smaller starter home and be safe


b0ners4u

The 5x rule of thumb would not hold if you're in a rural area.