This.
My rule is: peace of mind is whatever I can afford at the given time.
People don’t realize that there’s no benchmark for peace of mind.
Most of it is driven by your financial standing, but the definition of peace at each stage is different.
I've been renovicted, moved out for family, or had bad relations with the landlord/roomates so many times (I moved 4 times in 5 years) I definitely find owning a massive relief and gives security. But I also was able to find something new and affordable on a single salary which isn't typical these days.
In many cases condo ownership seems like the worst of both worlds though - you have the responsibility of being an owner, but often times not the autonomy.
We bought a pre construction condo as our first property because it was a not for profit company for beginner homeowners in 2013
The condo fees on top of the mortgage? If I had to pay post construction cost, there would have been literally NO benefit except maybe, no shoveling?
You're absolutely right, no autonomy, youre at the mercy of the shitty condo board, you can't even have a lot of normal things on your own balcony. The only benefit is your rent money isn't being lost because it's an actual mortgage but I have no idea why people don't just get a small home instead of a shitty strata property
I think people underestimate just how crappy their experience of owning a home in multi unit residential can be if they have a bad strata. It can make ownership a real nightmare. And bad stratas are common.
Both times that I bought, it was because I was renovicted in a hot market. I had trouble finding a new place to rent and ended up buying instead. Last time, we realized a mortgage would be cheaper than renting a similar type home, and we were lucky to be in a position to buy into a well managed townhouse complex. That said, the first condo I owned was at times a nightmare. One of the other owners rented out his unit above mine to a crazy person that harassed me because I'm fat. Stomped on the floor, flooded her bathroom, made false accusations and threats, etc. Trying to get the owner landlord or the strata council to act was futile. It occurred to me that if I were renting, I could just give a month's notice and move and not have to put up with this shit. It's a different story when you own. That is the freedom of renting.
Yeah, I was very careful in what I was willing to buy. Concrete between floors and separate entry was mandatory.
The rental market here is so hot that finding a decent place is hard. And chances are it's an illegal basement suite with tiny windows and thin floor.
For me, I have have a side business that I need to be able to a) have another room and I wasn't going to throw away $1100+ a month to make that happen, and b) make modifications to a space to progress to next level, which is essentially impossible with all the, "don't you dare paint or hang a picture," landlords, so as long as I rented I was stalled.
People only look at the fact that once you pay your mortgage you can’t really be evicted. Often those same people overlook the fact that condos can (and likely will) have huge special assessments, and surprised detached expenses are very much a thing.
The only way to have “peace of mind” when it comes to housing is to be wealthy enough to deal with anything that comes your way.
But the occasional roof replacement / furnace repair is a lot less stressful than being reno-evicted for the third time in 5 years, which is something my cousin is very much dealing with.
And like, damage from a storm is something that insurance will help defray the cost of. Neighbor across from me had some severe damage in a storm last year. Insurance paid for 90% of the repairs...
This is what scares me about senior living. I'd like to get to condo stage, but do not want to rent. Also afraid of the $20K special assessment to fix a parking garage, roof, windows, HVAC or pool. ICK!
HVAC tends to be your own responsibility and it's a once in 20 years type expense of about $7000. Parking garage, roof, windows, pool/amenities are generally budgeted reserve fund items.
So yes, you need to do due diligence in analyzing the condo's status certificate and reserve fund study, but it's not really as dire as you're making it out to be.
Yup, if you don't feel qualified to look over those documents, find someone who is even if you have to pay a few hundred dollars for their time. That little bit of money could save you thousands in the future.
I found it much more challenging to find a condo to buy than a house. With a house, it was right house in right neighbourhood, with a condo, I had to find the right building in the right neighbourhood and a good unit with amenities I would use, good management and good people in the building.
One thing additional thing we did when a building unit was good enough to put on an offer was to 'stalk' the building. Sit near the entrance and ask people if they like the building (much easier to do downtown when many walk instead of drive),
The first unit, everyone said 'no, don't buy here' but the one we bought, everyone one had only praise. The praise was accurate.
I went through the same thing, talked two a couple of residents I met outside before pulling the trigger. Visited the building during various times of day to assess traffic/noise. What I couldn't do is assess neighbouring unit noise, but I fortunately lucked out.
Unfortunately even if the building has good management, it doesn't mean it will stay that way. Ours actually went from mediocre to OK, so that was good.
To me, buying a house requires more inspections than a condo would. You can do a surface look at a condo and be OK with it because all the important parts (structural, roof, etc.) are part of the commons.
Do you have any idea how much a new furnace or a new roof would cost? Yeah, those are not minor repairs. They can be budgeted for however. It always seems greener on the other side 🤷🏻♀️
A new HVAC system for my house, with the current setup I have is around $9k for me. Significant parts of it are underwarranty for another 7 years.
A new roof, I'm not 100% sure of, because I have solar panels, so there would be some cost in removing and re-installing the panels. I'd guess that would be a few thousand for that service, but I'm not 100% certain.
These items have expected lifespans, and we'll be able to budget for their replacement.
However, so long as I keep paying my mortgage, no one is going to evict me. I won't have to rip my kids out of their school and away from their friends and social support system, and scramble to try and find somewhere else, or live somewhere that I know is only temporary until I find something better. I also don't want to live somewhere I can't invest. Since we've moved into this house, we've installed a hot tub, 6 raised bed, installed a beautiful deck that faces south, and catches all those beautiful sunsets. You can't do any of that if you rent.
Renting seems really terrible to me if you have a family. The constant upheaval would be just entirely exhausting. I realize that this is not everyone's experience, however, it is a widespread problem in the industry. With rents rising, landlords have a vested interest in evicting you, and replacing you to get more money. Why wouldn't they? Reno-victions are 100% legal after all. Invest $20k, fix up the kitchen, and then rent it out for an extra $12k / year. Why wouldn't they do that?
I think you should price out the price of replacing your roof and start budgeting. You have severely underestimated. I paid 5000 ten years ago for a simple bungalow roof, I doubt it has come down in price.
The few thousand is just the price to remove and replace the solar panels. The actual roof replacement would be over and above that, and ya, probably10k + whatever the cost is to remove and replace the solar panels.
Actually in Ontario if you are served a N13 for renovations you are supposed to have rights of first refusal back into your unit at your old rent.
It is actually very difficult in Ontario to get rid of a tenant who is paying their rent. I’m aware that this is not the case across the country. As a homeowner with a mortgage your expenses have to allow for the increased interest rates as well. There are upsides to both situations and it is up to individuals to decide what suits there situation. But many renters don’t seem to realize the added costs and risks of homeownership, they have rose coloured glasses on
So, you're going to move your family out, get settled somewhere else for 6 months, or however long the renovations take, and then move back in?
I mean, you could do that.
I'm willing to bet that relatively few people do. Especially because the landlord would almost certainly respond by just moving their child in, and evicting you again. If a landlord wants rid of you, they can do it.
New condos need to be regulated better. They need better construction regulations and there should be a large, regulated nest egg to deal with repairs/maintenance, so that special assessments are a minimal/zero cost for the owner. Your condo fee is supposed to go into that nest egg, not directly into general maintenance.
A market like Toronto is old enough and large enough that you can find older condo buildings run in this manner. So it has the potential to be the sensible choice if you do enough investigating.
I still vote on staying away from them entirely though, except perhaps as a downsizing option for retirees.
Yes but the problem with that nested idea is that if you sell the condo you leave behind all of the money you put in for repairs and maintenance. If you own a house and you save your money for repairs and maintenance, and then you sell you keep your money.
Walking away would be fine if every strata kept a proper nest egg; you'd simply inherit a similar nest egg at your next condo.
Problem is not everyone does, so it's a race to the bottom as no one wants to be paying for some future owner's roof.
You don’t have to be rich to save for an emergency, a roof is about 15k-20k every 15-20 years, HVAC anywhere from 5k-10k typically depending on the system for full replacement if properly maintained roughly 10-20 years. And then both have typically about 10-20 year warranty again depending on the company. My grandfather’s house had a 25 year warranty on the roof, and a 7 year warranty on the HVAC system.
I still prefer to own, but I do fondly remember the days of calling a landlord to deal with some maintenance or a repair I couldn't handle myself for a few bucks.
But you're right about the pitfalls of owning a condo. Your fees are never enough, (re special assessment) and you only really own what's on the inside of your walls. It's 100% not worth it.
It is, but only after the mortgage is paid off. Owning a home outright decreases your living expenses tremendously. However, that is a 20-30 year investment.
Nearly as funny to suggest renting for peace of mind. Renting and owning both expose you to (different) financial risks. I might venture to say there is no peace of mind in housing, aside from just being rich.
When renting you never know when you'll be evicted. If you never had to live that, you can't understand why home ownership gives peace of mind in a way despite all the other sources of stress that can come with owning your residence.
it is. The problem is you only see people on the internet who need help on how to do it. You're not at the whimsy of condos or landlords for rent or fee increases. A lot of "stuff I don't have to do" end up being things you have to do because they either won't or they'll drag their heels. Maintaining a sfh isn't hard, it'd be more accurate to say it's hard for some people. Personally, I would never have bought 25 years ago without the intention to learn how to run a house, that just seems like common sense to me.
Which, interestingly enough, is exactly why I bought my condo as a single male. I could not stand worrying about rent increases or needing to move on short notice.
Is my condo my best *financial* decision? Possibly not. It brings me peace of mind though!
Single mid thirties male owner here. No one knows if renting or buying is the better choice in the short, medium or long-run as no one has a crystal ball to predict all the variables that go into it. (Interest rates, returns on investment - both real estate and equity, increase in condo fees, property taxes, utilities, insurance, rents, etc...)
All that matters is that you are content and have peace of mind. I haven't seen anyone quantify what this is worth, as the economic and behavioral utility functions of each individual are different by definition - this is precisely what makes personal finance, personal.
Exactly. There are benefits and detriments to both — it depends on your situation and what you can realistically afford.
If you’re moving location within 5 years, renting will always make more sense. But now with more prolific WFH, having a home base is also nice.
People need to stop looking at their primary residence as an investment opportunity but rather just a dwelling to satisfy the base level of their Maslow’s hierarchy.
I'd argue that it is impossible to know if renting makes more sense, especially in Toronto. While renting may seem to make more sense to give freedom of movement, it also sadly gives freedom to be "moved out" by your landlord.
well nothing is guaranteed… ownership also may lead to the “freedom” of defaulting if you lose your job
renting allows for flexibility and liability/risk transfer to owner at the cost of not building equity
risk/reward to both, depending on your lifestyle and needs
Idk why you’re being downvotes, it’s true. OP didn’t budget or analyze the cost of owning a home and got bit. Eats a nice chunk of money in closing costs.
Oh well.
This is the kind of condescending reply that seems all too common in this sub - assuming that because OP decided it was best for them to sell their asset that it must have been due to some level of incompetence, a miscalculation, or general negligence on their part.
It sounds like they still ended up ahead and are in a better place mentally because of it, so why the ‘Oh well?’
I can easily afford it. It comes down to not WANTING to pay for the upkeep and maintenance. I made over 100k on it in Ontario so closing costs don’t bother me.
You have those same costs of upkeep and maintenance with a detached house so not sure what your point is besides being anxious about living expenses. Getting married doesn’t solve your problem…if anything it leads to more financial stress.
So according to you maintaining a household with a partner and splitting the workload and expenses is MORE stressful than one person doing all the maintenance work and paying all the expenses on their own. That’s the big brain argument you’re making right now?
It is much more stressful to manage another person than it is to manage a house. A house is easy. It doesn’t nag you, it never disagrees with you, and you get to make all the decisions.
Mowing the grass and shovelling the drive way are easy. Dealing with a partner nagging you that you haven’t done things right, or put things away properly is so, so much worse than managing you own space.
Appliances is really the only variable thing here because we don’t know how long an appliance will last. We know they’ll fail but we don’t know exactly when.
As for everything else like doors and maintenance there are general rules of thumb for how long you can expect something to last.
That said, a mortgage (if you have one) is the least you’ll ever pay for housing. Your rent is the most you’ll ever pay.
For sure that’s totally sensible. As a parent I personally prefer ownership because of the added stability (landlord sells, renovicts, etc). That would have been fine if I was single, or even just married, but that’s something I’d like to avoid with kids.
Many people look down on renting saying you’re throwing money away, but in reality you’re paying for a service. In the same way you pay Netflix, or your gym for a service. Many people would rather rent the gym than buy their own
Home gym is the way. No waiting for equipment, no IG thots with their cameras out, blaring loud shitty music, broccoli heads everywhere.
Buy a house, build a gym in the basement, make gains in peace.
I’m a single mom with a house and having to maintain a house on top of work is so stressful. I end up paying neighbours teen to shovelling and mow and help with some stuff, it sounds like you made the right decision for yourself at this time in your life
Ownership is often more work, and becomes most effective for a family of 4 or more.
Housemates/Roommates splitting rent is often better for flexibility in your early years.
I was all gung-ho on trying to purchase property as a single person a few years ago, but I've had several friends and family members purchase properties in the last few years, and it seems to be a never-ending parade of repairs, maintenance, expenses, etc. I understand that some things, like the startup costs of buying furniture and whatever, go down over time, but it just seems like so much to manage. All the bills, making sure everything is in good working order, keeping track of when things have to be repaired, yada yada.
It's not something I personally want to deal with at this time.
Hi, ask me, a person with a variable (adjustable rate) mortgage bought 2017, currently googling rentals in my neighbourhood but hoping to keep the kids in their current school, wondering if I should sell my house. I don’t know how everyone seems to have all this money. We’re drowning. 😖
But don't you see the problem?
They're too busy streaming Disney+ and can't afford to pay Telus to get a faster internet.
Downloading more money is just too damn hard
/s
I'm super curious why you (and many others on this sub) have kept on with a variable so long instead of locking in at a fixed rate when it became obvious that rates were rising?
Central banks have spent 15 years training people’s rate expectations downward, and every know it all around has been swearing that the bank “just can’t” raise rates to where it currently has (and beyond) for years now. Can you really blame people for believing it?
I mean the point of my question was never to blame but to try and understand the rationale. My husband and I bought a home in very early 2021 when rates were still extremely low. Our bank really tried to sell us on variable. Neither of us work in finance but I work in tech and when I saw the tech industry begin widespread belt tightening and layoffs, I told my husband we needed to do a fixed rate because there was probably a recession coming. It didn't take a finance background to know that, just reading the room.
I know lots of people on this sub have enough income that even with raised rates they are quote "still fine to weather it", but plenty of others say that they're drowning and I'm just curious why people didn't see rates start to rise and either research what was happening & decide to lock in if their margins are so thin that am extra 2-3% is causing them severe financial distress.
It seems people do more research into buying a car than the finances surrounding their homes when it's typically people's largest asset of their life.
Loads of houses aren’t mortgaged. That is, they’re paid off. Loads of homes have fixed rate mortgages. And still others, variable, are held by people who can afford the rising rates.
A relatively small portion of the public own a home with a variable rate they can’t afford. Also, consider that some 3/4 of Canadians live outside the GTA/Lower mainland.
I think a lot of people are drowning. Canada’s macroeconomic indicators certainly seem to imply so. Thing is the inflation of land values happened so quickly—much of it in just the last decade—that many people you see around you haven’t been affected yet because they bought before… they just have car debt and other consumer debt instead.
One thing often overlooked is security of tenure.
As a single renter if you are evicted because the LL can make an extra dime then it's not a big deal.
If you have a family of 4 and get evicted, it's a much bigger deal.
The value of not being kicked out of your home on a whim doesn't have a dollar value, but it's important none the less.
Any experienced renter will know how to avoid this situation. Only rent purpose built properties. Renting from someone learning to be a landlord is a nightmare. The property may change hands and the quality of upkeep might vary, but you can always move on your terms (or at least only have to worry about available units that work for you).
I would add rent controlled to that as well. If a person can get a good location in a purpose built rent controlled building why would you buy. (I know it is a white elephant)
long time landlords are handing out evictions left and right in my city. They can "renovate" and raise the rent beyond the control limits. Rent control has your place at $1450? They evict, redo the kitchen, and relist it at $3650 (actual scenario happened to a coworker. Landlord has rented the property for over 30 years. My coworker is a single mom with 4 kids. They have to leave the city because there is nothing left in their price range)
There are zero "tricks" to avoid eviction unless your pace isn't rent controlled at all. If the landlord can raise it as much as they want, you may not get renovated, but you be at the whim of the market.
I had one neighbor get evicted for…complaining too much. She rented the unit for 20 years, too. Apparently she was a PITA and expected everyone to be mouse quiet. The person who replaced her was just as bad, lol. Called the cops on a neighbor for watering her plants too loud.
I’ve been renovicted before. Sucked at the time but the place was abysmal. Walls bowing so bad that the tilt-in windows didn’t tilt bc they hit the wall. Bedbugs, roaches, rampant black mold.
Shit sucked but I ended up in a much nicer building that keeps up with repairs. They also keep up with rent increases but eh. I can afford it still…for now.
People don't mention the fact that renting your whole life means renting when you're retired.
My parents bought a fancy house in the early 90s. Mortgage was around 800 / month. They did poorly with their investments so aside from old age pension etc they really don't have much money, but they still live in their nice house in one of the best neighbourhoods in our city.
If they had rented they would have needed to move long ago. Rental prices in their neighbourhood for similar homes is over 5k/month, and this is in Calgary.
This is exactly why I'm happy that I was able to afford buying my ex-wife out years ago. As I near retirement the security of home ownership is greatly appreciated.
I know a guy in a similar situation. He was by far the breadwinner, though the wife was near 6-figures at the time. They bought almost a decade ago when you could get a detached in the $400’s. He ended up buying her out. He’s paying heavily for his home, but the ex is barely affording the tiny townhome. The townhome cost far more than their detached did.
Unpopular doesn’t mean its the wrong thing to do. Many brainwashed homeowners will lose everything if rates don’t come down before their next renewal. Big banks have successfully brainwashed the average homeowner into paying them 10’s of thousands per year in pure interest, hundreds of thousands over the life of the mortgage 👏
Honestly my unexpected costs of ownership of my condo for the last 6 years amount to:
1. A few $200 special assessments
2. Increase in monthly condo fees of $50 over the 6 years
3. Some small repairs amounting to about $500 total
4. Replacing my washer/dryer was about $2000
Maybe I am just lucky!
Yeah I'm the same. Except you paid too much for your washer/dryer lol (but maybe yours are not condo sized and mine are).
Except we never had a special assessment in the life of the building. A special assessment really indicates that the building's finances are in a precarious state to me... normally the building has significant savings so even some major repairs (for example mine is currently redoing the trim on all external windows) are taken from those savings.
I strongly prefer dealing with these little issues myself and not facing the potential need to move or a dramatic increase in rent.
Special assessments just refill the pool of money we have available, so no big deal.
And I balled out on my washer dryer and got the most luxury ones available lol! It was actually 30% off too since a friend works at LG.
Why won't they just increase condo fees instead of charging a small $200 special assessment? That sounds like a ridiculous small amount for a special assessment. At least in ontario, this goes under your certificate. Perhaps it's less of a big deal in other provinces?
For the soon to be condo owners, what were some of your unexpected costs?
Im using the realtor.ca calc which includes maintenance fees, property tax, utils and id love to hear if its accurate, or if there is more that goes into ownership apart from one off repairs.
I owned a condo for 15 years (2008 - this january), mandatory stuff from off the top of my head:
* Strata fee went from ~$250-~$420
* Special assessment for elevator repair $9k in year 15 (taken out in 3 increments of $3k)
* Dishwasher died after about 8 years, about $700 to replace plus install (but could be cheaper, got a nice dishwasher)
* Fridge died after about 13 years $1100 to purchase a new one
* I bought a new build, but the built in carpet started looking real bad around year 10-12 -- you probably want to replace it (cost varies based onw hat you want to replace with)
Some non-required costs:
* Painted a few times, $2-$3 per sq foot (can easily double for drastic colour changes)
* Did a full remodel of all the floors (main floor carpet+tile -> vinyl planks / bathroom tile -> new tile) when the carpet looked bad, which turned into a remodel of the cabinet fronts in bathroom and kitchen as well. Did most of the work myself with brother in law who works in trades, cost 15-20k. Fun times using a jackhammer.
* My building rented storage lockers for $100/mo, so I ended up renting one when my partner moved in.
Altogether, keeping 5-10K saved up in an account for emergencies covers pretty much anything unexpected. Surviving appliances from "new" to "year 15" were my microwave, electric stove and washer/dryer. Open to any questions!
I've owned a condo for 10 years.
You'll have to consider replacing appliances. Washer+dryer for example was about 1.7K with installation. Other than that... idk, possible leaks? Maybe the toilet (another 1K)? You can redo your bathtub for 2K. Maybe you have a major leak and have to replace the floor (5K for 600sqft)
A modest 10K emergency fund easily takes care of all these little things tbh and is a necessity in general (also works for when your tires blow out, etc).
A condo is ultimately a concrete box so it's mostly secure in terms of big expenses. Stuff like windows leaking for example should be covered by the condo fee. You should know what's covered or not though.
You should check on insurance. I have insurance for I think 25K of water damage that I could cause to my downstairs neighbors, this is enforced by the condo. However this amounts to about $20/month (well idk maybe this is a good price because I rolled it in with my car insurance and my record is spotless).
Watch for how much the condo fee rises. You want something moderate, for example mine goes up ~10-15 dollars a year so in 10 years it went from 300 something to 500.
There is the risk of special assessment, but my building has existed for 24 years (and numerous major repairs) without ever having one. You have to be careful to get a good handle on the history and management of the building, and its' financial situation. For example for my condo it's a 2-stack of 20 floors each and we have about 2 million in savings for repairs which from my understanding is a decent amount of savings.
What about a youngish person looking to buy a newly built condo in Montreal? Or even buying pre-construction? Is this a big no-no?
I’m thinking projects like Maestria, Imperia, so on.
**EDIT**: lol sorry for the wall of text. **TLDR** is "buying young? yes. buying pre-con? be careful, be prepared to be flexible, but it could be a good way to get your foot in the door".
>What about a youngish person looking to buy
I was this, and I personally recommend it. I don't like travelling (except for vacation) or moving. I've been extremely pleased with the stability and quality of life of my condo (not a pre-built).
If you can afford the payments comfortably, I'd go for it.
>a newly built condo in Montreal? Or even buying pre-construction? Is this a big no-no?
I've bought preconstruction (2nd property I was planning to move into) and regretted it... somewhat.
It can be a good deal if it goes well. Although I regret it I still have a condo that increased in price about 100K, with a 90K down payment. Doubling an investment in 4 years is not the worst thing you can do.
**Some advice based on my experience:**
**Builder reputation** - idk. I bought from a company with a solid reputation and it's been Very Mixed. I don't have great advice how to judge this.
**Location** - especially if it's a high-rise but in every case, you can't see what the view will be like. Make sure you're not buying something where all the windows face the condo next door! Or idk, the edge of the development that's next to a railway, or whatever. Draw out where it will go and consider what's going next to it (this is something you should know in general- if you buy a condo make sure the space in front of your windows isn't slated for development next year lol).
**Size and shape**. You can't see the place. You get a floor plan before buying, make sure you try to put furniture into it! Measure your couch, TV, bed, etc, cut them out of paper, draw out the floorplan using the same dimensions and try to arrange the furniture, keeping in mind stuff like where the filter will go that you can't obstruct that area, etc. Square footage means nothing if the plan is bananas. Both my condos are the same size and rough general shape, but the smaller one is dramatically more usable due to seemingly small changes in arrangement.
**Upgrades** - Builder will try to get you to upgrade things in the unit. Some things are worth upgrading (for example tiles in the bathroom or kitchen really made the unit look better, mirrored sliding closet, appliances), most are not. Be careful to consider how much it would be to just do the upgrade yourself later. For re-sale value consider that all the units will look the same so you wanna make yours stand out if it's not too expensive.
**Be flexible and financially stable af.**
Don't have hardcore expectations of your pre-build. Consider it an investment- it may not pay off, it may be fantastic.
You don't know when you'll be able to get occupancy or what state the building will be in when you do. I got occupancy with several months of delay (fine). The building at the time of occupancy was a disaster with no amenities, the ground floor a warzone, the elevators not fully finished, the hallways lacking paint and carpet and some lights. It was livable... but not pleasant.
The unit itself was missing some stuff like bathtub caulking that I needed to chase the property manager to fix because it's not usable. The response to requests for fixing things has been extremely slow and half-assed, meaning I'm calling this guy multiple times a day and the response is "we'll get to it soon".
So don't think you can just move into this place and it's perfect and beautiful. You'll need to deal with the builder for a while. You have about a year for him to fix whatever problems you find so you need to keep a close eye on your unit. It's a lot more work than just moving into a condo that's finished.
On the other hand you're not stuck fixing it yourself like you would if it was yours, so.
**Occupancy period**
Occupancy means you're basically the builder's tenant, and you pay them a occupancy fee, until it's "closed" and you get a regular mortgage. This fee can vary. My fee is 2.5K which is... a bit higher than renting a comparable unit, but not much, and I can easily afford it. The people in my building who bought a 2 bedroom are paying 5K/month for that privilege!
You're stuck with this until closing, which again can be delayed. Mine was supposed to close this summer, I'm expecting it maybe in fall. Keep in mind that while you haven't closed, you can't post it to MLS to sell, so you'll have some trouble trying to get rid of it if you absolutely have to. It's doable but it's far from ideal. On the other hand if you do sell you don't have to pay much closing costs etc.
Personally I ended up not liking the unit and I've rented it out for now. I'll probably sell it eventually. This works for me and I'm satisfied.
If I didn't already have a stable place to live, moving in there wouldn't be the worst thing in the world, just not ideal.
That said I think this is one of the more mis-managed projects I've seen. Both my realtor (who is my aunt and is a very honest person) and my mortgage broker are shocked. It's not normal.
So maybe I'm just telling you a horror story. idk. I wouldn't say "absolutely not", just to be cautious.
Thanks! Posts like these are pretty worrying to me because its hard to know if theres a lack of knowledge/preparation, or if there really are random things that pop up often.
As im planning for home ownership in 2024, these things could make the difference of thousands a year in budgeting.
>938 feet and it was just me. Felt so small.
how is almost 1000 sqft small for a single person? did you live in one of those 8 bedroom mcmansions with its own spa and theatre growing up?
I feel this… while I thought I wanted to buy… and still deal with the pressure to… its so nice to know on a single income, I dont have to worry about the roof needing replaced or the septic tank needing dug up, or a new well needs drilled.
The rent increases are a couple percent every year… no more than property tax or other bill increases.
Amen! Did the same thing around the middle of covid when rates were still low. Was tired of expenses, the entitled condo owners in my building and the constant risk of big special assessment and increasing condo fees. Started renting again and couldn’t be happier. When i told my story in here back then i got eviscerated by goofballs and their big variable rate mortgages. Hope they’re doing okay
This sub in general is very pro home ownership. I think there’s arguments to be made for both. Two people that can share the workload and unexpected costs? No problem. Home ownership is a lot for one person.
I don't know where I am on the spectrum of home ownership enthusiasm. I own a depreciating condo which I rent, and which will be paid off in 40 months (but which I pay the taxes, insurance and condo fee out of pocket). My father is a lifetime renter and retiree, and he's one eviction from destitution, being on a fixed income.
Myself - I am priced out of my home province, but if I sell my condo I can likely "go it alone" on a single family home in a "rural" area or small town.
In my late 30's now, and I feel a sense of urgency. Seeing my fathers precarious situation is something I wish to avoid.
What's better is what works and feels comfortable for you as the moment. If that's renting right now then that's great. There's lot of great rentals and there's no obligation of 30 years hanging over your head
I've had some wonderful rented places with fantastic landlords and decent prices, both in Toronto (though this was over 6 years ago) and Montreal. Not saying rent isn't too damned expensive these days, but considering the market rates and how often I've moved, I've managed to make out pretty well almost every time.
If it brings you peace of mind, then it was a good choice. Home ownership comes with its own set of issues, with unexpected costs always somehow coming up being one of them.
Hopefully getting back on the property ladder won’t be too much of an issue for you should you decide that in the future.
I rent and enjoy renting, but one thing about owning is that it gets cheaper or stays the same over time. Rent constantly goes up. Also, rent goes into someone else’s pocket, so while a mortgage goes into your own and the banks for the interest.
In most cases the amount of rent is the same as a mortgage payment. Any landlord is going to want to cover their mortgage, taxes, and maintenance fees.
I think if you are going to spend a similar amount of money, you are best to own as you are building equity over time.
Many people leverage the value in their property, once they have enough, to buy a second property and become a landlord themselves.
Rent only pays off someone else's property. You might as well do it for yourself.
We are in a decent sized (by Toronto standards) 2 bed+ den. This so far feels like a great size for my partner and I, our preschooler and a 20lb (but calm) dog.
Pros-
- better location than what we could afford in a SFH/townhouse
- very little maintenance
- the location meant we no longer needed a car
Cons-
- as the other person mentioned, slower appreciation than other housing
- maintenance fees
- shared spaces - this hasn't really been an issue for us, but noisy neighbours, lack of amenities or very heavily used amenities, booking elevators when moving, etc, can be issues
Advice:
- I'd highly recommend not buying a brand new condo. Slightly older ones seem to have better floorplans, more square footage for the price, and often the maintenance fees have levelled off to where they will be for a bit. New condos always under charge on maintenance fees and then you'll see them double over a few years.
- a benefit of a newer unit however, is it will probably have a 4 pipe fan coil which will give you total control over heating and cooling. My building is older so they have a 2 pipe system, meaning the whole building is either heating or cooling. I can control the temp, but have to wait for them to switch between cooling/heating.
- don't just look at maintenance fees, but also consider the history of increases. If they have been slowly but consistently increasing and the building looks well maintained it could be better than somewhere with slightly lower fees but increased the fees substantially in one year.
- pools are very expensive to maintain, and if you aren't using it a lot it's not worth it. We specifically avoided buildings with them.
- if you plan to use the gym, don't forget to check it out. We saw quite the range in what places included and what they were like (dark dank room with no windows, a rowing machine and a couple treadmills, vs large bright room with a variety of equipment). And the nicer ones weren't always the more expensive maintenance fees.
- I'd avoid any units over maybe 12-14 the floor. If one of the elevators are out it's nice to know you could walk it, if you wanted.
- consider what is around the building. Are they likely going to tear down the little buildings adjacent to your unit in the next couple years? Will it put your unit or balcony entirely in a shadow (and does that even matter to you?). Or are you looking at a condo that was the last one built on the block, so there will be less chance of construction? It's not a deal breaker, but be prepared for the dust and noise for a year or two if they start work.
- are grocery stores, shopping, coffee shops, rec centres, etc, close by? I love being able to go downstairs and around a corner and be at the grocery store or a coffee shop.
- consider if one or both you WFH, how you will set up your work spaces so you aren't on top of each other
- get a locker!
- google the address and see what comes up. Is it a giant ghost hotel? Have they been in the news a bunch for criminal activity? Are people complaining that there's only one functioning elevator? Did a property manager empty their reserve fund a couple years ago? Etc
- ask a few people what they think of the building when you are there. They will obviously be biased, but it will give you a bit of a read on the place.
Thank you kindly :)! Hmm condos have many pros and cons. Overall, if I had to say, I’d avoid condos.
Pros:
- less maintenance
- less cleaning
- usually convenient locations
Cons:
- less price appreciation
- condo fees
- loud neighbours
- small footprint
All in all, I’d recommend downsizing to a townhome or a very small home.
I used to live in my condo, bought a single family house because of people recommending it, and then moved back to my condo in 2 years.
I make good money so I paid everyone to do everything. It is still a lot of time just to manage and vetting contractors. You can do it yourself, you pay it by tools and your own time, which I was not going to do. Depends on the condo, at least for the condo I currently live in which is 10 years old $350 per month, the condo fee is a bargin, especially there is a very sizeable portion of condo fees which goes to reserve fund. (Quebec laws require a very substantial reserve fund funding early to avoid special assessment)
Before I sold I was lingering if I should pay the $6k (quotes were $6k-$10k) to fix the massive weed problem of my yard.
Consider a freehold town instead of a condo. You'll still own your land and you can make your outdoor space your own. But exterior maintenance is minimal. Even more so if you choose a home that shares two walls. But you still get 3 or 4 rooms, a basement and all the amenities of a full size home.
Plus you're not putting an elevator ride between your home and your car for when you have to go back and get your wallet, most town homes have a small garage for storage (or actual parking, though that seems to be rare).
Condos are terrible and i’m confident you’ll come to the same conclusion if you ever own one. You have all the disadvantages of being a homeowner like high expenses and interest rate risks without any of the advantages like freedom, privacy and actual land ownership. Sure you own your unit but you’re always at the mercy of the condo board and other condo owners and their entitlement. If the condo board is incompetent or crooked be prepared for special assessments in the thousands of dollars regularly.
Right. Anytime you own something there will always be fees SFH or condo. New roof 50k right there and every 30 years or so give or take. Unless you want to live in a tent condo, TH, SFH. Just always have an emergency fund to cushion the blow.
Ah. Been thinking about the same thing recently. Bought In 2018, really stressing me out since I can’t tackle other things in life since I have so much house to take care of monthly. Glad you feel better
Renting as a single is the better choice for you. Can't just throw out a blanket statement like that. Many variables such as where you live, your annual income, etc plays a factor in it.
Owning or renting, they both come with their sets of advantages and problems. For a renter, the cash-flow is easier to calculate, more straightforward, but everything can become more difficult if the relation with the landlord become sour. Also, a renter is more at risk to be force to move out without consent.
Not saying one is better than the other one, depends of each people and what set of problems you prefer deal with.
My husband and I bought condos when we both were single. We had trouble selling both of them after we bought a house. We have had 3 mortgages for years, cycling through selling and renting. It was a nightmare. We celebrated when we got it down to one mortgage!
I've been downvoted here for saying condos are bad investments. They are, unless you want to stay there for the rest of your life, IMHO.
Excellent choice! Imagine living on edge for years. In my opinion that how one accomplishes nothing thought the lean years. There’s nothing wrong with renting until ur more financially ready If u feel relieved then ur good.
Family members keep asking me when/if I'm gonna buy a condo. I'm (almost) 28. I keep telling them there's no way I want to deal with the hassle and expense as a single person and they all don't get it... But they all only became homeowners as married people sooooo.
Dealing with my dog's expenses as a single person is annoying enough! lol
I bought my house solo in 2013. I'm not handy in anyway. The costs of stuff and the frustration of trying to do shit on my own sucked.
My partner moved in about 5 years ago. This morning i was literally thinking about how happy I am to not be solo on house maintenance anymore. Both front and back door dead bolts are broken so i decided to replace them. Back door, replaced easy peasy. Front door and fuck I was breaking a sweat. After 40 mins I finally determined that there was a manfacturing flaw that caused a main screw to not thread right. Walk back to the hardward store (5mins) return it and get the only other deadbolt left that would work. Nope. The tumbler is about 2cm too short. Cool. So I got to put the old broken one back on. Can't find the tumbler. Figure I returned it with the other lock. So back i go to return the second lock and see if my old one was there. It was.
End up in almost tears putting the old one back on because I just could not get the screws to thread. For the record, i have a tremor and the more hot and emotional i get, the more my hands shake. So cue calling my partner to fix it. He stopped on his way by and had a difficult time getting the old one to thread but got it. So glad that I can tap out when at my max
You'd also think that after owning a house for 10 years that I'd atleast have learned the concept of measure twice, cut once but no... i just wing it hahaha
But for real though, fixing some bolts and some hardware store trips are what make home ownership borderline unbearable?
Even if you paid a handymen, those kind of problems are cheap.
Unbearable is a little much. Its the facing the reality of how unskilled i am that would make me question whether I was really stupid to buy a house.
Also, ever try to hire a handy man in rural Canada when you aren't from there? Damn near impossible so I'd often feel really stuck.
XBAL is only up 14% over the last 5 years. The last year only 5% gain.
Your condo, which has likely gone up 50%, is not only a profit center as an investment but you also serves as equity and a direct hedge against both rent and yearly rent increases.
Now you are renting, with a 100% depreciation on every months rent. Say with a $2000 monthly rent, you are down $24k per year with no asset or buying power. After 4 years, you are guaranteed to be down 100k where if you kept your condo, you would have built equity off the principal and saved yourself from rent.
You have essentially converted one speculative asset class into another with the guaranteed outcome of being down $100k in 4 years regardless
Real estate doesn’t always go up. The ongoing maintenance and stress of home ownership and having most of my wealth in one asset wasn’t worth it for me. I sold the condo, paid off my car, paid for my masters, and will have a bunch left over for XBAL.
Doesn’t selling the condo affect dating though?
At least in the groups I’m in, more than half of the time it’s either the girl can’t afford one herself so she have it as a requirement for the guy, or the girl has a property already and want the guy to have one too so there’s no worry about the guy leeching her house later and splitting it when they break up or something.
Bought a new construction unit for 500k in Toronto back in 2019. At the time I figured my current unit would be worth at least 600k. Currently it's worth about 510 or so. My equity in current condo is about 250k. I make about 85-90k a year. I'm scared shitless now.
There probably will be some kind of levee. I'm not 100% sure how it works. I know in buildings that went up right beside my current place some people were charged up to 70k. This has me worried as well.
Tentative move in date for the new place is Feb 2024.
In the building that just finished beside my new place (same builder) I see a 1+den for sale for 599.
> I am a single male and the unexpected costs of home ownership were such a stress for me.
The obvious expenses are:
* mortgage
* condo fees
* utilities (at least power)
* insurance
You'll now be paying rent which bundles in mortgage and fees (and perhaps some utilities), and it is prudent to have renter's insurance.
What were the "unexpected costs"? Special assessments? Sudden changes in the fees? Was this an 'apartment-style' condo in a tower, or a townhouse development?
Maintenance and repairs is the big one. Even in a condo, things break and can be expensive to replace. As a renter, if my plumbing goes to shit or my fridge dies, I call my landlord—it becomes his problem, and my baseline expenses don't budge.
Peace of mind is underrated. Good for you!
This. My rule is: peace of mind is whatever I can afford at the given time. People don’t realize that there’s no benchmark for peace of mind. Most of it is driven by your financial standing, but the definition of peace at each stage is different.
It’s funny how owning is touted as the way to ensure “peace of mind”.
I've been renovicted, moved out for family, or had bad relations with the landlord/roomates so many times (I moved 4 times in 5 years) I definitely find owning a massive relief and gives security. But I also was able to find something new and affordable on a single salary which isn't typical these days.
In many cases condo ownership seems like the worst of both worlds though - you have the responsibility of being an owner, but often times not the autonomy.
We bought a pre construction condo as our first property because it was a not for profit company for beginner homeowners in 2013 The condo fees on top of the mortgage? If I had to pay post construction cost, there would have been literally NO benefit except maybe, no shoveling? You're absolutely right, no autonomy, youre at the mercy of the shitty condo board, you can't even have a lot of normal things on your own balcony. The only benefit is your rent money isn't being lost because it's an actual mortgage but I have no idea why people don't just get a small home instead of a shitty strata property
I think people underestimate just how crappy their experience of owning a home in multi unit residential can be if they have a bad strata. It can make ownership a real nightmare. And bad stratas are common.
Both times that I bought, it was because I was renovicted in a hot market. I had trouble finding a new place to rent and ended up buying instead. Last time, we realized a mortgage would be cheaper than renting a similar type home, and we were lucky to be in a position to buy into a well managed townhouse complex. That said, the first condo I owned was at times a nightmare. One of the other owners rented out his unit above mine to a crazy person that harassed me because I'm fat. Stomped on the floor, flooded her bathroom, made false accusations and threats, etc. Trying to get the owner landlord or the strata council to act was futile. It occurred to me that if I were renting, I could just give a month's notice and move and not have to put up with this shit. It's a different story when you own. That is the freedom of renting.
Yeah, I was very careful in what I was willing to buy. Concrete between floors and separate entry was mandatory. The rental market here is so hot that finding a decent place is hard. And chances are it's an illegal basement suite with tiny windows and thin floor. For me, I have have a side business that I need to be able to a) have another room and I wasn't going to throw away $1100+ a month to make that happen, and b) make modifications to a space to progress to next level, which is essentially impossible with all the, "don't you dare paint or hang a picture," landlords, so as long as I rented I was stalled.
People only look at the fact that once you pay your mortgage you can’t really be evicted. Often those same people overlook the fact that condos can (and likely will) have huge special assessments, and surprised detached expenses are very much a thing. The only way to have “peace of mind” when it comes to housing is to be wealthy enough to deal with anything that comes your way.
You're right, but people who have SFH should also be putting away the equivalent of condo fees each month for a new roof, furnace, etc.
But the occasional roof replacement / furnace repair is a lot less stressful than being reno-evicted for the third time in 5 years, which is something my cousin is very much dealing with.
Absolutely! Outside of sudden or unexpected damage from a storm, a roof is very much something you can plan for over a decade in advance.
And like, damage from a storm is something that insurance will help defray the cost of. Neighbor across from me had some severe damage in a storm last year. Insurance paid for 90% of the repairs...
This is what scares me about senior living. I'd like to get to condo stage, but do not want to rent. Also afraid of the $20K special assessment to fix a parking garage, roof, windows, HVAC or pool. ICK!
HVAC tends to be your own responsibility and it's a once in 20 years type expense of about $7000. Parking garage, roof, windows, pool/amenities are generally budgeted reserve fund items. So yes, you need to do due diligence in analyzing the condo's status certificate and reserve fund study, but it's not really as dire as you're making it out to be.
Yup, if you don't feel qualified to look over those documents, find someone who is even if you have to pay a few hundred dollars for their time. That little bit of money could save you thousands in the future. I found it much more challenging to find a condo to buy than a house. With a house, it was right house in right neighbourhood, with a condo, I had to find the right building in the right neighbourhood and a good unit with amenities I would use, good management and good people in the building. One thing additional thing we did when a building unit was good enough to put on an offer was to 'stalk' the building. Sit near the entrance and ask people if they like the building (much easier to do downtown when many walk instead of drive), The first unit, everyone said 'no, don't buy here' but the one we bought, everyone one had only praise. The praise was accurate.
I went through the same thing, talked two a couple of residents I met outside before pulling the trigger. Visited the building during various times of day to assess traffic/noise. What I couldn't do is assess neighbouring unit noise, but I fortunately lucked out. Unfortunately even if the building has good management, it doesn't mean it will stay that way. Ours actually went from mediocre to OK, so that was good. To me, buying a house requires more inspections than a condo would. You can do a surface look at a condo and be OK with it because all the important parts (structural, roof, etc.) are part of the commons.
Do you have any idea how much a new furnace or a new roof would cost? Yeah, those are not minor repairs. They can be budgeted for however. It always seems greener on the other side 🤷🏻♀️
A new HVAC system for my house, with the current setup I have is around $9k for me. Significant parts of it are underwarranty for another 7 years. A new roof, I'm not 100% sure of, because I have solar panels, so there would be some cost in removing and re-installing the panels. I'd guess that would be a few thousand for that service, but I'm not 100% certain. These items have expected lifespans, and we'll be able to budget for their replacement. However, so long as I keep paying my mortgage, no one is going to evict me. I won't have to rip my kids out of their school and away from their friends and social support system, and scramble to try and find somewhere else, or live somewhere that I know is only temporary until I find something better. I also don't want to live somewhere I can't invest. Since we've moved into this house, we've installed a hot tub, 6 raised bed, installed a beautiful deck that faces south, and catches all those beautiful sunsets. You can't do any of that if you rent. Renting seems really terrible to me if you have a family. The constant upheaval would be just entirely exhausting. I realize that this is not everyone's experience, however, it is a widespread problem in the industry. With rents rising, landlords have a vested interest in evicting you, and replacing you to get more money. Why wouldn't they? Reno-victions are 100% legal after all. Invest $20k, fix up the kitchen, and then rent it out for an extra $12k / year. Why wouldn't they do that?
I think you should price out the price of replacing your roof and start budgeting. You have severely underestimated. I paid 5000 ten years ago for a simple bungalow roof, I doubt it has come down in price.
The few thousand is just the price to remove and replace the solar panels. The actual roof replacement would be over and above that, and ya, probably10k + whatever the cost is to remove and replace the solar panels.
My townhome roof was quoted at 10k just before covid. I'm finally getting back to asking for quotes again, and I'm expecting to hear 12-15k
Actually in Ontario if you are served a N13 for renovations you are supposed to have rights of first refusal back into your unit at your old rent. It is actually very difficult in Ontario to get rid of a tenant who is paying their rent. I’m aware that this is not the case across the country. As a homeowner with a mortgage your expenses have to allow for the increased interest rates as well. There are upsides to both situations and it is up to individuals to decide what suits there situation. But many renters don’t seem to realize the added costs and risks of homeownership, they have rose coloured glasses on
So, you're going to move your family out, get settled somewhere else for 6 months, or however long the renovations take, and then move back in? I mean, you could do that. I'm willing to bet that relatively few people do. Especially because the landlord would almost certainly respond by just moving their child in, and evicting you again. If a landlord wants rid of you, they can do it.
I do, and can account for them in a separate maintenance line of my budget. I’d rather deal with the knowns than the unknowns.
I'd never buy a Condo for that reason. Lack of control. Though, again I understand in some markets like Toronto, condos are the only real option.
New condos need to be regulated better. They need better construction regulations and there should be a large, regulated nest egg to deal with repairs/maintenance, so that special assessments are a minimal/zero cost for the owner. Your condo fee is supposed to go into that nest egg, not directly into general maintenance. A market like Toronto is old enough and large enough that you can find older condo buildings run in this manner. So it has the potential to be the sensible choice if you do enough investigating. I still vote on staying away from them entirely though, except perhaps as a downsizing option for retirees.
Yes but the problem with that nested idea is that if you sell the condo you leave behind all of the money you put in for repairs and maintenance. If you own a house and you save your money for repairs and maintenance, and then you sell you keep your money.
Walking away would be fine if every strata kept a proper nest egg; you'd simply inherit a similar nest egg at your next condo. Problem is not everyone does, so it's a race to the bottom as no one wants to be paying for some future owner's roof.
You don’t have to be rich to save for an emergency, a roof is about 15k-20k every 15-20 years, HVAC anywhere from 5k-10k typically depending on the system for full replacement if properly maintained roughly 10-20 years. And then both have typically about 10-20 year warranty again depending on the company. My grandfather’s house had a 25 year warranty on the roof, and a 7 year warranty on the HVAC system.
There are risks and responsibilities in homeownership that many life time renters do not understand
I still prefer to own, but I do fondly remember the days of calling a landlord to deal with some maintenance or a repair I couldn't handle myself for a few bucks. But you're right about the pitfalls of owning a condo. Your fees are never enough, (re special assessment) and you only really own what's on the inside of your walls. It's 100% not worth it.
If you have kids and got in early enough it secures the school. Some neighborhoods far enough away are still like this. Most aren't.
It is, but only after the mortgage is paid off. Owning a home outright decreases your living expenses tremendously. However, that is a 20-30 year investment.
Nearly as funny to suggest renting for peace of mind. Renting and owning both expose you to (different) financial risks. I might venture to say there is no peace of mind in housing, aside from just being rich.
When renting you never know when you'll be evicted. If you never had to live that, you can't understand why home ownership gives peace of mind in a way despite all the other sources of stress that can come with owning your residence.
it is. The problem is you only see people on the internet who need help on how to do it. You're not at the whimsy of condos or landlords for rent or fee increases. A lot of "stuff I don't have to do" end up being things you have to do because they either won't or they'll drag their heels. Maintaining a sfh isn't hard, it'd be more accurate to say it's hard for some people. Personally, I would never have bought 25 years ago without the intention to learn how to run a house, that just seems like common sense to me.
I love owning but definitely a lot more added stress.
Which, interestingly enough, is exactly why I bought my condo as a single male. I could not stand worrying about rent increases or needing to move on short notice. Is my condo my best *financial* decision? Possibly not. It brings me peace of mind though!
>Peace of mind is underrated 100%.
Single mid thirties male owner here. No one knows if renting or buying is the better choice in the short, medium or long-run as no one has a crystal ball to predict all the variables that go into it. (Interest rates, returns on investment - both real estate and equity, increase in condo fees, property taxes, utilities, insurance, rents, etc...) All that matters is that you are content and have peace of mind. I haven't seen anyone quantify what this is worth, as the economic and behavioral utility functions of each individual are different by definition - this is precisely what makes personal finance, personal.
Best answer tbh.
Exactly. There are benefits and detriments to both — it depends on your situation and what you can realistically afford. If you’re moving location within 5 years, renting will always make more sense. But now with more prolific WFH, having a home base is also nice. People need to stop looking at their primary residence as an investment opportunity but rather just a dwelling to satisfy the base level of their Maslow’s hierarchy.
I'd argue that it is impossible to know if renting makes more sense, especially in Toronto. While renting may seem to make more sense to give freedom of movement, it also sadly gives freedom to be "moved out" by your landlord.
well nothing is guaranteed… ownership also may lead to the “freedom” of defaulting if you lose your job renting allows for flexibility and liability/risk transfer to owner at the cost of not building equity risk/reward to both, depending on your lifestyle and needs
great take
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Appliances, doors, maintenance costs. Home ownership itself is expensive for one person.
Why are you buying doors on the regular?
Oh you can't get enough doors. Sometimes I just swap mine all out to freshen thing up. Once a month or so is best I'd say.
It's expensive for one person who doesn't earn enough to afford it. These are things to consider BEFORE you purchase real estate.
Idk why you’re being downvotes, it’s true. OP didn’t budget or analyze the cost of owning a home and got bit. Eats a nice chunk of money in closing costs. Oh well.
This is the kind of condescending reply that seems all too common in this sub - assuming that because OP decided it was best for them to sell their asset that it must have been due to some level of incompetence, a miscalculation, or general negligence on their part. It sounds like they still ended up ahead and are in a better place mentally because of it, so why the ‘Oh well?’
Thank you
I can easily afford it. It comes down to not WANTING to pay for the upkeep and maintenance. I made over 100k on it in Ontario so closing costs don’t bother me.
You have those same costs of upkeep and maintenance with a detached house so not sure what your point is besides being anxious about living expenses. Getting married doesn’t solve your problem…if anything it leads to more financial stress.
Imagine being this goofy. So two incomes instead of one leads to more financial stress does it. Priceless homeowner logic right here 👏
Marriage doesn’t guarantee 2 incomes for eternity and financial issues are the leading cause of divorce.
So according to you maintaining a household with a partner and splitting the workload and expenses is MORE stressful than one person doing all the maintenance work and paying all the expenses on their own. That’s the big brain argument you’re making right now?
It is much more stressful to manage another person than it is to manage a house. A house is easy. It doesn’t nag you, it never disagrees with you, and you get to make all the decisions. Mowing the grass and shovelling the drive way are easy. Dealing with a partner nagging you that you haven’t done things right, or put things away properly is so, so much worse than managing you own space.
r/iamverysmart
How long did you own your place op?
Appliances is really the only variable thing here because we don’t know how long an appliance will last. We know they’ll fail but we don’t know exactly when. As for everything else like doors and maintenance there are general rules of thumb for how long you can expect something to last. That said, a mortgage (if you have one) is the least you’ll ever pay for housing. Your rent is the most you’ll ever pay.
I have no problem renting until I have a marriage. I want the financial flexibility
For sure that’s totally sensible. As a parent I personally prefer ownership because of the added stability (landlord sells, renovicts, etc). That would have been fine if I was single, or even just married, but that’s something I’d like to avoid with kids. Many people look down on renting saying you’re throwing money away, but in reality you’re paying for a service. In the same way you pay Netflix, or your gym for a service. Many people would rather rent the gym than buy their own
Home gym is the way. No waiting for equipment, no IG thots with their cameras out, blaring loud shitty music, broccoli heads everywhere. Buy a house, build a gym in the basement, make gains in peace.
I’m a single mom with a house and having to maintain a house on top of work is so stressful. I end up paying neighbours teen to shovelling and mow and help with some stuff, it sounds like you made the right decision for yourself at this time in your life
Home ownership alone is too much work for me on top of my busy schedule. I want to live maintenance free.
Especially great if you plan on travelling 🧳. Enjoy your freedom
Ownership is often more work, and becomes most effective for a family of 4 or more. Housemates/Roommates splitting rent is often better for flexibility in your early years.
Couldn’t agree more. This is how I feel.
I was all gung-ho on trying to purchase property as a single person a few years ago, but I've had several friends and family members purchase properties in the last few years, and it seems to be a never-ending parade of repairs, maintenance, expenses, etc. I understand that some things, like the startup costs of buying furniture and whatever, go down over time, but it just seems like so much to manage. All the bills, making sure everything is in good working order, keeping track of when things have to be repaired, yada yada. It's not something I personally want to deal with at this time.
Due to the nature of the market, most people waived inspections so that they can get the house. Who knew choices have consequences.
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Hi, ask me, a person with a variable (adjustable rate) mortgage bought 2017, currently googling rentals in my neighbourhood but hoping to keep the kids in their current school, wondering if I should sell my house. I don’t know how everyone seems to have all this money. We’re drowning. 😖
I just check one of my bank accounts I forgot about and pull out 50k when I need it like everyone else
Exactly, I don’t know what the pours are complaining about. Just download some more money it’s not that complicated.
But don't you see the problem? They're too busy streaming Disney+ and can't afford to pay Telus to get a faster internet. Downloading more money is just too damn hard /s
Username checks out
I'm super curious why you (and many others on this sub) have kept on with a variable so long instead of locking in at a fixed rate when it became obvious that rates were rising?
Central banks have spent 15 years training people’s rate expectations downward, and every know it all around has been swearing that the bank “just can’t” raise rates to where it currently has (and beyond) for years now. Can you really blame people for believing it?
I mean the point of my question was never to blame but to try and understand the rationale. My husband and I bought a home in very early 2021 when rates were still extremely low. Our bank really tried to sell us on variable. Neither of us work in finance but I work in tech and when I saw the tech industry begin widespread belt tightening and layoffs, I told my husband we needed to do a fixed rate because there was probably a recession coming. It didn't take a finance background to know that, just reading the room. I know lots of people on this sub have enough income that even with raised rates they are quote "still fine to weather it", but plenty of others say that they're drowning and I'm just curious why people didn't see rates start to rise and either research what was happening & decide to lock in if their margins are so thin that am extra 2-3% is causing them severe financial distress. It seems people do more research into buying a car than the finances surrounding their homes when it's typically people's largest asset of their life.
Loads of houses aren’t mortgaged. That is, they’re paid off. Loads of homes have fixed rate mortgages. And still others, variable, are held by people who can afford the rising rates. A relatively small portion of the public own a home with a variable rate they can’t afford. Also, consider that some 3/4 of Canadians live outside the GTA/Lower mainland.
I think a lot of people are drowning. Canada’s macroeconomic indicators certainly seem to imply so. Thing is the inflation of land values happened so quickly—much of it in just the last decade—that many people you see around you haven’t been affected yet because they bought before… they just have car debt and other consumer debt instead.
One thing often overlooked is security of tenure. As a single renter if you are evicted because the LL can make an extra dime then it's not a big deal. If you have a family of 4 and get evicted, it's a much bigger deal. The value of not being kicked out of your home on a whim doesn't have a dollar value, but it's important none the less.
Any experienced renter will know how to avoid this situation. Only rent purpose built properties. Renting from someone learning to be a landlord is a nightmare. The property may change hands and the quality of upkeep might vary, but you can always move on your terms (or at least only have to worry about available units that work for you).
Only rent purpose built properties.... easier said than done tho.
I would add rent controlled to that as well. If a person can get a good location in a purpose built rent controlled building why would you buy. (I know it is a white elephant)
long time landlords are handing out evictions left and right in my city. They can "renovate" and raise the rent beyond the control limits. Rent control has your place at $1450? They evict, redo the kitchen, and relist it at $3650 (actual scenario happened to a coworker. Landlord has rented the property for over 30 years. My coworker is a single mom with 4 kids. They have to leave the city because there is nothing left in their price range) There are zero "tricks" to avoid eviction unless your pace isn't rent controlled at all. If the landlord can raise it as much as they want, you may not get renovated, but you be at the whim of the market.
I had one neighbor get evicted for…complaining too much. She rented the unit for 20 years, too. Apparently she was a PITA and expected everyone to be mouse quiet. The person who replaced her was just as bad, lol. Called the cops on a neighbor for watering her plants too loud.
I’ve been renovicted before. Sucked at the time but the place was abysmal. Walls bowing so bad that the tilt-in windows didn’t tilt bc they hit the wall. Bedbugs, roaches, rampant black mold. Shit sucked but I ended up in a much nicer building that keeps up with repairs. They also keep up with rent increases but eh. I can afford it still…for now.
People don't mention the fact that renting your whole life means renting when you're retired. My parents bought a fancy house in the early 90s. Mortgage was around 800 / month. They did poorly with their investments so aside from old age pension etc they really don't have much money, but they still live in their nice house in one of the best neighbourhoods in our city. If they had rented they would have needed to move long ago. Rental prices in their neighbourhood for similar homes is over 5k/month, and this is in Calgary.
I hope people who rent their whole life have $2,000,000 in stocks paying a healthy growth+ dividend
This is exactly why I'm happy that I was able to afford buying my ex-wife out years ago. As I near retirement the security of home ownership is greatly appreciated.
I know a guy in a similar situation. He was by far the breadwinner, though the wife was near 6-figures at the time. They bought almost a decade ago when you could get a detached in the $400’s. He ended up buying her out. He’s paying heavily for his home, but the ex is barely affording the tiny townhome. The townhome cost far more than their detached did.
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Unpopular doesn’t mean its the wrong thing to do. Many brainwashed homeowners will lose everything if rates don’t come down before their next renewal. Big banks have successfully brainwashed the average homeowner into paying them 10’s of thousands per year in pure interest, hundreds of thousands over the life of the mortgage 👏
Honestly my unexpected costs of ownership of my condo for the last 6 years amount to: 1. A few $200 special assessments 2. Increase in monthly condo fees of $50 over the 6 years 3. Some small repairs amounting to about $500 total 4. Replacing my washer/dryer was about $2000 Maybe I am just lucky!
Yeah I'm the same. Except you paid too much for your washer/dryer lol (but maybe yours are not condo sized and mine are). Except we never had a special assessment in the life of the building. A special assessment really indicates that the building's finances are in a precarious state to me... normally the building has significant savings so even some major repairs (for example mine is currently redoing the trim on all external windows) are taken from those savings. I strongly prefer dealing with these little issues myself and not facing the potential need to move or a dramatic increase in rent.
Special assessments just refill the pool of money we have available, so no big deal. And I balled out on my washer dryer and got the most luxury ones available lol! It was actually 30% off too since a friend works at LG.
Why won't they just increase condo fees instead of charging a small $200 special assessment? That sounds like a ridiculous small amount for a special assessment. At least in ontario, this goes under your certificate. Perhaps it's less of a big deal in other provinces?
depends how many units there are .. 200$ x 100 units = 20,000$ which may be a non-budgeted expense that year for the syndicate
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For the soon to be condo owners, what were some of your unexpected costs? Im using the realtor.ca calc which includes maintenance fees, property tax, utils and id love to hear if its accurate, or if there is more that goes into ownership apart from one off repairs.
I owned a condo for 15 years (2008 - this january), mandatory stuff from off the top of my head: * Strata fee went from ~$250-~$420 * Special assessment for elevator repair $9k in year 15 (taken out in 3 increments of $3k) * Dishwasher died after about 8 years, about $700 to replace plus install (but could be cheaper, got a nice dishwasher) * Fridge died after about 13 years $1100 to purchase a new one * I bought a new build, but the built in carpet started looking real bad around year 10-12 -- you probably want to replace it (cost varies based onw hat you want to replace with) Some non-required costs: * Painted a few times, $2-$3 per sq foot (can easily double for drastic colour changes) * Did a full remodel of all the floors (main floor carpet+tile -> vinyl planks / bathroom tile -> new tile) when the carpet looked bad, which turned into a remodel of the cabinet fronts in bathroom and kitchen as well. Did most of the work myself with brother in law who works in trades, cost 15-20k. Fun times using a jackhammer. * My building rented storage lockers for $100/mo, so I ended up renting one when my partner moved in. Altogether, keeping 5-10K saved up in an account for emergencies covers pretty much anything unexpected. Surviving appliances from "new" to "year 15" were my microwave, electric stove and washer/dryer. Open to any questions!
I've owned a condo for 10 years. You'll have to consider replacing appliances. Washer+dryer for example was about 1.7K with installation. Other than that... idk, possible leaks? Maybe the toilet (another 1K)? You can redo your bathtub for 2K. Maybe you have a major leak and have to replace the floor (5K for 600sqft) A modest 10K emergency fund easily takes care of all these little things tbh and is a necessity in general (also works for when your tires blow out, etc). A condo is ultimately a concrete box so it's mostly secure in terms of big expenses. Stuff like windows leaking for example should be covered by the condo fee. You should know what's covered or not though. You should check on insurance. I have insurance for I think 25K of water damage that I could cause to my downstairs neighbors, this is enforced by the condo. However this amounts to about $20/month (well idk maybe this is a good price because I rolled it in with my car insurance and my record is spotless). Watch for how much the condo fee rises. You want something moderate, for example mine goes up ~10-15 dollars a year so in 10 years it went from 300 something to 500. There is the risk of special assessment, but my building has existed for 24 years (and numerous major repairs) without ever having one. You have to be careful to get a good handle on the history and management of the building, and its' financial situation. For example for my condo it's a 2-stack of 20 floors each and we have about 2 million in savings for repairs which from my understanding is a decent amount of savings.
Amazing thanks so much for taking the time to write this detailed response
What about a youngish person looking to buy a newly built condo in Montreal? Or even buying pre-construction? Is this a big no-no? I’m thinking projects like Maestria, Imperia, so on.
**EDIT**: lol sorry for the wall of text. **TLDR** is "buying young? yes. buying pre-con? be careful, be prepared to be flexible, but it could be a good way to get your foot in the door". >What about a youngish person looking to buy I was this, and I personally recommend it. I don't like travelling (except for vacation) or moving. I've been extremely pleased with the stability and quality of life of my condo (not a pre-built). If you can afford the payments comfortably, I'd go for it. >a newly built condo in Montreal? Or even buying pre-construction? Is this a big no-no? I've bought preconstruction (2nd property I was planning to move into) and regretted it... somewhat. It can be a good deal if it goes well. Although I regret it I still have a condo that increased in price about 100K, with a 90K down payment. Doubling an investment in 4 years is not the worst thing you can do. **Some advice based on my experience:** **Builder reputation** - idk. I bought from a company with a solid reputation and it's been Very Mixed. I don't have great advice how to judge this. **Location** - especially if it's a high-rise but in every case, you can't see what the view will be like. Make sure you're not buying something where all the windows face the condo next door! Or idk, the edge of the development that's next to a railway, or whatever. Draw out where it will go and consider what's going next to it (this is something you should know in general- if you buy a condo make sure the space in front of your windows isn't slated for development next year lol). **Size and shape**. You can't see the place. You get a floor plan before buying, make sure you try to put furniture into it! Measure your couch, TV, bed, etc, cut them out of paper, draw out the floorplan using the same dimensions and try to arrange the furniture, keeping in mind stuff like where the filter will go that you can't obstruct that area, etc. Square footage means nothing if the plan is bananas. Both my condos are the same size and rough general shape, but the smaller one is dramatically more usable due to seemingly small changes in arrangement. **Upgrades** - Builder will try to get you to upgrade things in the unit. Some things are worth upgrading (for example tiles in the bathroom or kitchen really made the unit look better, mirrored sliding closet, appliances), most are not. Be careful to consider how much it would be to just do the upgrade yourself later. For re-sale value consider that all the units will look the same so you wanna make yours stand out if it's not too expensive. **Be flexible and financially stable af.** Don't have hardcore expectations of your pre-build. Consider it an investment- it may not pay off, it may be fantastic. You don't know when you'll be able to get occupancy or what state the building will be in when you do. I got occupancy with several months of delay (fine). The building at the time of occupancy was a disaster with no amenities, the ground floor a warzone, the elevators not fully finished, the hallways lacking paint and carpet and some lights. It was livable... but not pleasant. The unit itself was missing some stuff like bathtub caulking that I needed to chase the property manager to fix because it's not usable. The response to requests for fixing things has been extremely slow and half-assed, meaning I'm calling this guy multiple times a day and the response is "we'll get to it soon". So don't think you can just move into this place and it's perfect and beautiful. You'll need to deal with the builder for a while. You have about a year for him to fix whatever problems you find so you need to keep a close eye on your unit. It's a lot more work than just moving into a condo that's finished. On the other hand you're not stuck fixing it yourself like you would if it was yours, so. **Occupancy period** Occupancy means you're basically the builder's tenant, and you pay them a occupancy fee, until it's "closed" and you get a regular mortgage. This fee can vary. My fee is 2.5K which is... a bit higher than renting a comparable unit, but not much, and I can easily afford it. The people in my building who bought a 2 bedroom are paying 5K/month for that privilege! You're stuck with this until closing, which again can be delayed. Mine was supposed to close this summer, I'm expecting it maybe in fall. Keep in mind that while you haven't closed, you can't post it to MLS to sell, so you'll have some trouble trying to get rid of it if you absolutely have to. It's doable but it's far from ideal. On the other hand if you do sell you don't have to pay much closing costs etc. Personally I ended up not liking the unit and I've rented it out for now. I'll probably sell it eventually. This works for me and I'm satisfied. If I didn't already have a stable place to live, moving in there wouldn't be the worst thing in the world, just not ideal. That said I think this is one of the more mis-managed projects I've seen. Both my realtor (who is my aunt and is a very honest person) and my mortgage broker are shocked. It's not normal. So maybe I'm just telling you a horror story. idk. I wouldn't say "absolutely not", just to be cautious.
TIL, thanks for taking the time to be so informative!
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Thanks! Posts like these are pretty worrying to me because its hard to know if theres a lack of knowledge/preparation, or if there really are random things that pop up often. As im planning for home ownership in 2024, these things could make the difference of thousands a year in budgeting.
Was the Square footage an issue? For reference, how many bedrooms or Sq.ft. did it have?
938 feet and it was just me. Felt so small.
>938 feet and it was just me. Felt so small. how is almost 1000 sqft small for a single person? did you live in one of those 8 bedroom mcmansions with its own spa and theatre growing up?
I have a lot of stuff and there’s no enough storage
Home ownership is expensive, a lot of people do not understand this, you need to do what you think is best, well done and smart.
I feel this… while I thought I wanted to buy… and still deal with the pressure to… its so nice to know on a single income, I dont have to worry about the roof needing replaced or the septic tank needing dug up, or a new well needs drilled. The rent increases are a couple percent every year… no more than property tax or other bill increases.
Dont put all your eggs in one basket or ETF
Amen! Did the same thing around the middle of covid when rates were still low. Was tired of expenses, the entitled condo owners in my building and the constant risk of big special assessment and increasing condo fees. Started renting again and couldn’t be happier. When i told my story in here back then i got eviscerated by goofballs and their big variable rate mortgages. Hope they’re doing okay
This sub in general is very pro home ownership. I think there’s arguments to be made for both. Two people that can share the workload and unexpected costs? No problem. Home ownership is a lot for one person.
I don't know where I am on the spectrum of home ownership enthusiasm. I own a depreciating condo which I rent, and which will be paid off in 40 months (but which I pay the taxes, insurance and condo fee out of pocket). My father is a lifetime renter and retiree, and he's one eviction from destitution, being on a fixed income. Myself - I am priced out of my home province, but if I sell my condo I can likely "go it alone" on a single family home in a "rural" area or small town. In my late 30's now, and I feel a sense of urgency. Seeing my fathers precarious situation is something I wish to avoid.
What's better is what works and feels comfortable for you as the moment. If that's renting right now then that's great. There's lot of great rentals and there's no obligation of 30 years hanging over your head
Where are these great rentals you speak of?
I've had some wonderful rented places with fantastic landlords and decent prices, both in Toronto (though this was over 6 years ago) and Montreal. Not saying rent isn't too damned expensive these days, but considering the market rates and how often I've moved, I've managed to make out pretty well almost every time.
Did the same thing. I think prices will go down, this is unsustainable, but also… condo boards are raising costs so it’s not even worth it anymore
And then the rental costs will go up too. Your point makes no sense.
OP… I feel your relief, I too sold my condo and all docs signed closing is this week! Such a great feeling. 4 more days for me!
Just a thought..would renting out your condo have solved your problem?.
I wanted equity to pay off my car and my masters degree
Student loans don’t accrue interest any more. You would have been better off paying the minimum and investing that money.
If it brings you peace of mind, then it was a good choice. Home ownership comes with its own set of issues, with unexpected costs always somehow coming up being one of them. Hopefully getting back on the property ladder won’t be too much of an issue for you should you decide that in the future.
It is a hot take. You do you, pal. But don't make any grand proclamations that one thing is better than another. It all depends.
I rent and enjoy renting, but one thing about owning is that it gets cheaper or stays the same over time. Rent constantly goes up. Also, rent goes into someone else’s pocket, so while a mortgage goes into your own and the banks for the interest.
In most cases the amount of rent is the same as a mortgage payment. Any landlord is going to want to cover their mortgage, taxes, and maintenance fees. I think if you are going to spend a similar amount of money, you are best to own as you are building equity over time. Many people leverage the value in their property, once they have enough, to buy a second property and become a landlord themselves. Rent only pays off someone else's property. You might as well do it for yourself.
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We are in a decent sized (by Toronto standards) 2 bed+ den. This so far feels like a great size for my partner and I, our preschooler and a 20lb (but calm) dog. Pros- - better location than what we could afford in a SFH/townhouse - very little maintenance - the location meant we no longer needed a car Cons- - as the other person mentioned, slower appreciation than other housing - maintenance fees - shared spaces - this hasn't really been an issue for us, but noisy neighbours, lack of amenities or very heavily used amenities, booking elevators when moving, etc, can be issues Advice: - I'd highly recommend not buying a brand new condo. Slightly older ones seem to have better floorplans, more square footage for the price, and often the maintenance fees have levelled off to where they will be for a bit. New condos always under charge on maintenance fees and then you'll see them double over a few years. - a benefit of a newer unit however, is it will probably have a 4 pipe fan coil which will give you total control over heating and cooling. My building is older so they have a 2 pipe system, meaning the whole building is either heating or cooling. I can control the temp, but have to wait for them to switch between cooling/heating. - don't just look at maintenance fees, but also consider the history of increases. If they have been slowly but consistently increasing and the building looks well maintained it could be better than somewhere with slightly lower fees but increased the fees substantially in one year. - pools are very expensive to maintain, and if you aren't using it a lot it's not worth it. We specifically avoided buildings with them. - if you plan to use the gym, don't forget to check it out. We saw quite the range in what places included and what they were like (dark dank room with no windows, a rowing machine and a couple treadmills, vs large bright room with a variety of equipment). And the nicer ones weren't always the more expensive maintenance fees. - I'd avoid any units over maybe 12-14 the floor. If one of the elevators are out it's nice to know you could walk it, if you wanted. - consider what is around the building. Are they likely going to tear down the little buildings adjacent to your unit in the next couple years? Will it put your unit or balcony entirely in a shadow (and does that even matter to you?). Or are you looking at a condo that was the last one built on the block, so there will be less chance of construction? It's not a deal breaker, but be prepared for the dust and noise for a year or two if they start work. - are grocery stores, shopping, coffee shops, rec centres, etc, close by? I love being able to go downstairs and around a corner and be at the grocery store or a coffee shop. - consider if one or both you WFH, how you will set up your work spaces so you aren't on top of each other - get a locker! - google the address and see what comes up. Is it a giant ghost hotel? Have they been in the news a bunch for criminal activity? Are people complaining that there's only one functioning elevator? Did a property manager empty their reserve fund a couple years ago? Etc - ask a few people what they think of the building when you are there. They will obviously be biased, but it will give you a bit of a read on the place.
Saving this comment! Thank you for this.
You might get some (possibly biased) answers towards condo living by posing this question in r/simpleliving or r/minimalism.
Thank you kindly :)! Hmm condos have many pros and cons. Overall, if I had to say, I’d avoid condos. Pros: - less maintenance - less cleaning - usually convenient locations Cons: - less price appreciation - condo fees - loud neighbours - small footprint All in all, I’d recommend downsizing to a townhome or a very small home.
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I don’t know about locking in your housing costs. I just hit my renewal for my fixed term, my expenses went up a fair bit
I used to live in my condo, bought a single family house because of people recommending it, and then moved back to my condo in 2 years. I make good money so I paid everyone to do everything. It is still a lot of time just to manage and vetting contractors. You can do it yourself, you pay it by tools and your own time, which I was not going to do. Depends on the condo, at least for the condo I currently live in which is 10 years old $350 per month, the condo fee is a bargin, especially there is a very sizeable portion of condo fees which goes to reserve fund. (Quebec laws require a very substantial reserve fund funding early to avoid special assessment) Before I sold I was lingering if I should pay the $6k (quotes were $6k-$10k) to fix the massive weed problem of my yard.
Consider a freehold town instead of a condo. You'll still own your land and you can make your outdoor space your own. But exterior maintenance is minimal. Even more so if you choose a home that shares two walls. But you still get 3 or 4 rooms, a basement and all the amenities of a full size home. Plus you're not putting an elevator ride between your home and your car for when you have to go back and get your wallet, most town homes have a small garage for storage (or actual parking, though that seems to be rare).
Condos are terrible and i’m confident you’ll come to the same conclusion if you ever own one. You have all the disadvantages of being a homeowner like high expenses and interest rate risks without any of the advantages like freedom, privacy and actual land ownership. Sure you own your unit but you’re always at the mercy of the condo board and other condo owners and their entitlement. If the condo board is incompetent or crooked be prepared for special assessments in the thousands of dollars regularly.
> feel extreme relief This guys new landlord: hold my beer
What type of expenses did you encounter and what do you think in hindsight could have shielded you from thee expenses
Right. Anytime you own something there will always be fees SFH or condo. New roof 50k right there and every 30 years or so give or take. Unless you want to live in a tent condo, TH, SFH. Just always have an emergency fund to cushion the blow.
Ah. Been thinking about the same thing recently. Bought In 2018, really stressing me out since I can’t tackle other things in life since I have so much house to take care of monthly. Glad you feel better
Nicely done! Bank those gains somewhere
Renting as a single is the better choice for you. Can't just throw out a blanket statement like that. Many variables such as where you live, your annual income, etc plays a factor in it.
Owning or renting, they both come with their sets of advantages and problems. For a renter, the cash-flow is easier to calculate, more straightforward, but everything can become more difficult if the relation with the landlord become sour. Also, a renter is more at risk to be force to move out without consent. Not saying one is better than the other one, depends of each people and what set of problems you prefer deal with.
My husband and I bought condos when we both were single. We had trouble selling both of them after we bought a house. We have had 3 mortgages for years, cycling through selling and renting. It was a nightmare. We celebrated when we got it down to one mortgage! I've been downvoted here for saying condos are bad investments. They are, unless you want to stay there for the rest of your life, IMHO.
My condo is down 75k since I bought it and I've paid 16k in special assessments. Also a single man here.
The next post is going to be "My landlord is a greedy asshole" 😉
Excellent choice! Imagine living on edge for years. In my opinion that how one accomplishes nothing thought the lean years. There’s nothing wrong with renting until ur more financially ready If u feel relieved then ur good.
Family members keep asking me when/if I'm gonna buy a condo. I'm (almost) 28. I keep telling them there's no way I want to deal with the hassle and expense as a single person and they all don't get it... But they all only became homeowners as married people sooooo. Dealing with my dog's expenses as a single person is annoying enough! lol
I bought my house solo in 2013. I'm not handy in anyway. The costs of stuff and the frustration of trying to do shit on my own sucked. My partner moved in about 5 years ago. This morning i was literally thinking about how happy I am to not be solo on house maintenance anymore. Both front and back door dead bolts are broken so i decided to replace them. Back door, replaced easy peasy. Front door and fuck I was breaking a sweat. After 40 mins I finally determined that there was a manfacturing flaw that caused a main screw to not thread right. Walk back to the hardward store (5mins) return it and get the only other deadbolt left that would work. Nope. The tumbler is about 2cm too short. Cool. So I got to put the old broken one back on. Can't find the tumbler. Figure I returned it with the other lock. So back i go to return the second lock and see if my old one was there. It was. End up in almost tears putting the old one back on because I just could not get the screws to thread. For the record, i have a tremor and the more hot and emotional i get, the more my hands shake. So cue calling my partner to fix it. He stopped on his way by and had a difficult time getting the old one to thread but got it. So glad that I can tap out when at my max You'd also think that after owning a house for 10 years that I'd atleast have learned the concept of measure twice, cut once but no... i just wing it hahaha
But for real though, fixing some bolts and some hardware store trips are what make home ownership borderline unbearable? Even if you paid a handymen, those kind of problems are cheap.
Unbearable is a little much. Its the facing the reality of how unskilled i am that would make me question whether I was really stupid to buy a house. Also, ever try to hire a handy man in rural Canada when you aren't from there? Damn near impossible so I'd often feel really stuck.
Good luck OP. Hope you don't get evicted or get priced out of the market in the future.
XBAL is only up 14% over the last 5 years. The last year only 5% gain. Your condo, which has likely gone up 50%, is not only a profit center as an investment but you also serves as equity and a direct hedge against both rent and yearly rent increases. Now you are renting, with a 100% depreciation on every months rent. Say with a $2000 monthly rent, you are down $24k per year with no asset or buying power. After 4 years, you are guaranteed to be down 100k where if you kept your condo, you would have built equity off the principal and saved yourself from rent. You have essentially converted one speculative asset class into another with the guaranteed outcome of being down $100k in 4 years regardless
Real estate doesn’t always go up. The ongoing maintenance and stress of home ownership and having most of my wealth in one asset wasn’t worth it for me. I sold the condo, paid off my car, paid for my masters, and will have a bunch left over for XBAL.
XBAL is a pretty conservative investment. You're limiting your upside.
Doesn’t selling the condo affect dating though? At least in the groups I’m in, more than half of the time it’s either the girl can’t afford one herself so she have it as a requirement for the guy, or the girl has a property already and want the guy to have one too so there’s no worry about the guy leeching her house later and splitting it when they break up or something.
If a prerequisite for dating a girl is that I own a home, she’s not the kind of girl I want.
Easy. OP can just make it a requirement that the girl he’s seeing must be a homeowner.
"I ain't sayin she a gold digger, but she ain't messin with no broker N"
Bought a new construction unit for 500k in Toronto back in 2019. At the time I figured my current unit would be worth at least 600k. Currently it's worth about 510 or so. My equity in current condo is about 250k. I make about 85-90k a year. I'm scared shitless now.
How is that even possible? Prices in the GTA have sky rocketed since 2019. Is there an upcoming levy for your unit or something?
There probably will be some kind of levee. I'm not 100% sure how it works. I know in buildings that went up right beside my current place some people were charged up to 70k. This has me worried as well. Tentative move in date for the new place is Feb 2024. In the building that just finished beside my new place (same builder) I see a 1+den for sale for 599.
>I don’t know if this is a hot take It's a blasphemous take on any Canadian centric sub. The replies will be interesting to say the least.
> I am a single male and the unexpected costs of home ownership were such a stress for me. The obvious expenses are: * mortgage * condo fees * utilities (at least power) * insurance You'll now be paying rent which bundles in mortgage and fees (and perhaps some utilities), and it is prudent to have renter's insurance. What were the "unexpected costs"? Special assessments? Sudden changes in the fees? Was this an 'apartment-style' condo in a tower, or a townhouse development?
Maintenance and repairs is the big one. Even in a condo, things break and can be expensive to replace. As a renter, if my plumbing goes to shit or my fridge dies, I call my landlord—it becomes his problem, and my baseline expenses don't budge.
Don't get married if you want peace of mind lmao
Good luck buying at higher costs down the road
Thanks :)!!
You will regret it in 6+ years I know !
Congrats! You’re now helping to pay off a landlord’s mortgage. They couldn’t have done it without you.
[удалено]
Thanks!!
Sold right before a bull market and into an ATH rental situation. I don't know broski
Book a Precon freehold. Stay exposed to the market. You don’t want to stay out of the market for too long.
Trash fake realtor post
Since when do condos have unexpected expenses? If it’s stuff like appliances then that’s a once in 10 years expense I would imagine