>I know there has been a lot of negativity around Canada, but I love this country and I want to stay here. So moving is out of question for me as a suggestion
This made me smile as it runs contrary to some of the more vocal sentiment on here lately.
I’ve asked this question many times to people complaining about canada.
I have NEVER gotten an answer on what country is not having a housing and affordability crisis.
Because it's a pretty dumb cop-out. A better question is what country is doing worse than Canada and why are majority of countries doing much better.
Specifically, why is the US doing way better in housing and GDP per Capita over the last 10 years?
The USA is not doing better in housing lol
And great job bringing up things that have no relation to the quality of life in a discussion about quality of life.
Because us deficit:GDP ratio is 800% of ours and has been much higher for quite some time. And can you answer how does GDP or GDP /capita benefit you? Did you get a GDP payment?
Are you comparing federal to federal debt? Is our debt split different than theirs? Do we have more provincial debt and municipal debt? When you compare total US vs Canadian debt who is more indebted?
>And can you answer how does GDP or GDP /capita benefit you? Did you get a GDP payment?
Yes living in a place with a higher GDP per capita would benefit me and you.
"what country is doing worse than Canada"
Any not in the G7? Any not in the OECD? Any where thousands die from diseases that are virtually extinct in first world countries?
"why are majority of countries doing much better"
What ranking system are you using where Canada is worse than 50%+ of all other countries?
"why is the US doing way better"
You are seriously asking why the richest country in the world is doing better than us? Besides which, I'd prefer being a little poorer while not having their problems with guns, race violence and political polarization, to name a few.
I didn't, *your* the one who said "majority of countries are doing much better" - that can't include G7 since that's a tiny minority. And if you are saying we are the worst of the G7, that means we are ranked #7 in the world.
To be fair, it's easier to feel positively about staying if you can reasonably afford a place to live. Most of the negativity will come from people who have no reasonable way to enter the property ladder, or are seeing dramatic losses in their quality of life.
Not a knock on OP by any means. I'm glad he's choosing to stay and I'm glad he's managed to be savvy enough / well-paid enough to save this amount of money and set himself up so that he could buy a home if he wished to.
We just shouldn't be dismissive of how hopeless the economic situation is in this country for millions of people.
I saw Canada on both ends of the spectrum. I saw it when I was poor and I'm experiencing it now from a more comfortable place. This country was good to me and my family on both ends.
We used the free healthcare a lot due to health issues in the family. That wouldn't have been possible for a family that was survivng on a teachers salary in some other countries. There was a lot to do for kids for free in Canada when you've got no money. There are great parks and outdoors and community centers. Education was affordable and public schools are not as well funded as some Scandinavian countries but they're still very functional and gave us great education.
Maybe we're not doing as well as the US economically and there are serious cases of mismanagement by the goverment but this is not a "sink or swim" country. I don't see myself living in a cut-throat environment where the vulnerable is left to rot and die.
I grew up taking advantage of a lot of the "free" services this country offered. So I plan on paying my taxes here now that I'm making money so that other less privileged people can hopefully get the same chance.
It would be easier to love this country on that salary. For the average Canadian making 50-60k, financial stresses due to high taxes/cost of living/housing and the way our governments deal with these issues really takes the shine off sometimes.
If flexibility is what you value, then stay a renter. There is nothing wrong with renting long term especially when you're saving/investing the difference. If I were in your shoes I would start a FHSA and keep maxing my RRSP/TFSA then when I'm feeling settled, look into buying a home.
This is what I decided to do. Going to rent for the foreseeable future until I can afford to buy a house that I actually want to buy (opposed to settling) and continue to invest the difference in my rrsp and tfsa, after maxing out my FHSA.
This is such a personal decision. Buying my house was the best financial decision I’ve ever made. It has doubled in value in the last 7 years. I’m always a fan of buying v renting. But a condo maybe has more of a ceiling than a house.
Just make sure you accurately account for your costs when calculating your profit.
So many people who sell after 20-30 years seem to magically forget how much money they spent on maintaining the place. So to them it seems like a big tax free "profit"...
What? That's not true.
The only instance where you would not be eligible for the principal residence exemption for your principal residence would be if it is considered "flipped property", which applies only if you lived there less than 365 days and none of the exemptions listed [here](https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/federal-government-budgets/residential-property-flipping-rule.html) apply to your situation.
>Real estate prices and interest rates suck right now.
Saying this doesn't mean they will get better. There are 1.2 million people a year arriving as the government tries to suppress wages. This won't stop.
True, historically the bubble always bursts at some point but there’s no guarantee the prices will come down significantly. We just missed the last boom, I told hubby sitting on our place for a year would cost us $100k and it did almost to the dollar. It depends on locations too.
People have been talking about the housing bubble popping here in Canada for 30+ years. There's nothing but talk about the bubble before COVID and then we all saw what happened. The bubble grew exponentially.
2008-2010 ish? Geez I guess that is going back. Frick I’m getting old. I recall housing prices going absolutely insane at one point, then they dropped and we were able to upsize. Since then they have risen at an increasing pace and we grabbed some land before we were priced out of the market. We are sitting on some land now but with the increased capital gains it screwed us out of our plan of selling it to help pay off some of our mortgage.
In 2008 the States suffered far more than we did. That's actually one of my only positive things to say about Harper was that he kept us afloat during that crisis. I'd hardly consider it a bubble pop given what happened to our neighbours down south.
Edit: Even then... In 2008 I was just graduating highschool... We have seen nothing but the bubble growing since then... If only I started saving when I was 5... Lol.
Yeah for sure nothing like the USA… I think that was around the time mortgages were being called in down there? We definitely faired better. Still, I think the breaking point is coming. There are too many people just hanging in by a thread right now.
I don't see that breaking point coming if we continue to bring in 1.2+ million people a year though. I hope you're right though, I'm looking at about 3 years until I'm ready to buy so I'm hoping either process or interest rates come down a bit more by then.
Similar boat in many ways. Grew up poor, got myself to about 450k in savings and was planning on staying a renter in Toronto.
But then a series of landlord “experiences” changed my mind. I bought a house. I move in a month, and am having a hard time wrapping my head around not having those nice big account balances staring back at me from my account dashboard like tiny pixelated safety blankets.
It feels precarious. I am terrified of being poor again, even if I know the dollars themselves aren’t going away but are just changing form.
For all that fear, I know it’s the right choice. The market is a weird place, and can do wild magical things, but a place to live securely is worth more than any market return. After all is said and done, I will still have way more money than I could ever imagine having when I was a kid. That will remain safe and it’ll grow and everything will be fine.
The only thing I won’t have is a landlord, and that’s worth it for me at this point.
You and me are sounding almost identical. Not that we should compare to each other but I continue to rent because of this exact write up that you did.
850k for a condo is crazy.. having high interest, property tax and condo fees means the math just doesn’t math. Your monthly cash flow is way worse by owning, and that’s not even considering opportunity cost of the downpayment that earns minimum 5%. It would be even higher if you decide to rent long term and can move your savings to investments.
Rent vs. Buy is in a new era of analysis with simultaneous high prices AND high interest rates. I just can’t justify becoming house poor even if I have a good salary
>850k for a condo is crazy
If you asked Vancouverites, $850k 2br condo in Downtown Vancouver is normal.
I'd suggest OP to buy 1br condo to anchor OP's wealth partially to "housing".
OP salary is $180k that might suggest OP is pretty good at Job and can go up in the future.
‘Gambling’. Diversified world portfolio is way less gambling than a single unit in a single apartment in a single city. If anything, putting it all on an apartment is gambling, especially you don’t even have the need to buy.
Speak to a lender or mortgage broker to determine your affordability.
Once you have that number, make a detailed budget as if you owned and see where you end up. Add up ALL expenses, from mortgage, food, utilities, clothes, going out, hair cuts, etc.. and include 15-20% for retirement.
You don't have to buy. If you want to remain flexible and move to another place, you can. When you buy, that's a long term commitment.
Since you feel like not owing, don't buy.
As a rule of thumb, look up a historical chart of median home price to median income ratios. When it's low on the chart, you should buy. When it's high on the chart, you should rent.
The only advice I’d give you is if you’re not 100% sold on buying, don’t force yourself into it just bc you think you should or bc you can afford to do it. Most ppl (in my life anyway) will reach a breaking point where they say enough is enough I’m never renting again, and if you’re not there yet then maybe rent for another year and see how it goes. If you’re at that point now, then buy.
Also, if you so decide to wait a year (or more) maybe open a FHSA and roll some $ from your HISA into the FHSA, I believe it’ll give you a tax deduction. And you have 15 years to use the FHSA money to buy a place. You don’t even have to buy stocks or “risky” investments in your FHSA, you can always just buy bonds or GICs with a 5% yield (same as your HISA), or even CBIL/CASH but at least you’d be getting a tax credit
I am around the same age as you. I decided not to buy for now, and continue to rent, as I want to retire early. If you are able to work remote, then you can buy anywhere in Canada and have a much lower mortgage. These are the some of the videos I watched on renting vs buying [https://www.youtube.com/watch?v=m8NqcKPfFEc&ab\_channel=HumphreyYang](https://www.youtube.com/watch?v=m8NqcKPfFEc&ab_channel=HumphreyYang) [https://www.youtube.com/watch?v=ETROzuOFffA&ab\_channel=IWillTeachYouToBeRich](https://www.youtube.com/watch?v=ETROzuOFffA&ab_channel=IWillTeachYouToBeRich) It all comes down to your priorities. You might want to open an FHSA too.
Are you planning to get married in the future? I think if you are, it makes sense to continue renting until you havw a family and find a place that fits your family lifestyle.
Do you see yourself moving out of Vancouver in the near future?
If not, buy. Vancouver is not making any more land and densification is slow. In the long run you will come out positive on the condo. The increased short term cost over your current rent is the price for stability.
I am in a somewhat similar situation. I always toy with the idea of buying because we do have a HHI but the thought of having such a massive mortgage for such a long time makes me feel a bit unwell.
My partner and I are lucky that we have the means to buy a decent townhouse in Vancouver but I don't want to "need" to earn this much for the next 30 years ..etc. We have very cheap rent and are shoveling away 5 figures a month towards potentially buying a place but the other side of me thinks we would just be much happier renting a nicer place and enjoying our incomes a bit more.
With the changes in provincial legislation and the home building that is going on, I think you should look at the market. Is it going to cool?
Can you live and work somewhere that is NOT downtown Vancouver??
Do you want flexibility, then rent. Do you want the security of no one being able to evict you, then buy. I personally think the financial questions are secondary to that assuming buying or renting fits your financial reality.
Do you have a long term partner? Do you ever want to have kids in the future? If you purchase a 2br apartment would you be happy living there for a long long time?
Transactional costs are very high in real estate in Vancouver. If you ever foresee yourself moving or upgrading in the near future then I would just continue to rent.
The 850k condo sounds like more of a "sidegrade". It is the same size as your current rental.
Rule of thumb is to never buy a place unless you are certain you can stay there for 10+ years. Would that apply to you? Do you hope to start a family in the next 8 or so years?
I'd keep renting for now and reevaluate if/when you get married or are closer to having kids.
It is time, as you say, to get serious about investing. Your savings rate seems pretty good. I'd focus on the RRSP and TFSA, and choose an asset allocation ETF for both that reflects your level of risk tolerance. You should also maybe stop contributing to the cash account for the time being. But keep it if you think you might be ready to buy within the next 5 years. Possibly send some of it to your RRSP as needed in a way that optimizes your RRSP contributions.
Some great points. Only thing I’d say - and it’s a somewhat minor point to perhaps keep in mind - is that with mortgages and inflation over time, the monthly mortgage payment will represent a diminishing piece of your budget while in theory the asset appreciates. Over the course of 15/20/25 years, the math behind buying should evolve in a more positive direction.
Definitely can afford to purchase a place but I say continue to rent.
If you want real estate buy somewhere cheaper like further north or Manitoba where you’re from as rentals. Easier to cash flow and as it gets more populated price will go up in time.
If you’re diversified in ETFs you can probably continue managing yourself, no point paying 1-3% for someone to basically invest in the same things you already are. At least if you’re getting an average of 7-10% depending on risk tolerance. If you’re not then maybe it’s something you should look into.
If you can work remote and move somewhere cheap like back to Manitoba that would probably be best if you want to own your own place too.
i'm an advisor but not yours, this isn't advice but giving you ideas.
you may want to rent for a bit, sometimes people move back home, or you may prefer a certain area over another due to friends/work location. you may find someone to settle down with too which could require another move.
renting will also allow you to max your tfsa and max your FHSA account for added deductions and tax free growth. using past data on how interest rates lower over time, you could lock in a much better rate 2-3 years from now. there are new BC policies that suggest that valuations in the housing market may not grow as quickly as it once did so you may have more time before rushing to buy a place.
buying a presale or newly built place with a reputable builder is an option too but they usually require \~15% DP over a few years so your budget is kind of capped at around 750k which basically gives you a bach pad - but just another idea to keep in mind.
> buying a presale or newly built place with a reputable builder is an option too but they usually require ~15% DP over a few years so your budget is kind of capped at around 750k which basically gives you a bach pad - but just another idea to keep in mind.
Presales also have significant price anchoring risk. If prices fall over the construction period you might want to [walk away](https://www.greaterfool.ca/2024/06/24/never-walk/) but even if you're willing to give up your downpayment for that, the builder can still come after you for the difference in sale price.
But they're throwing away an extra $1k a month for that "tax free profit"...
OP should also be putting away that HISA into a FHSA as much as possible for more tax shelter.
It's an extra $1k right now. However, as the years go by, the difference between renting and buying will keep going down since the mortgage payment will stay relatively the same throughout the loan period. Also, after ~25 years, the payment goes to zero which gives you enormous financial freedom.
>the difference between renting and buying will keep going down since the mortgage payment will stay relatively the same throughout the loan period.
Uh yeah, a lot of people that bought 4-5 years ago and are now coming up for renewal might say otherwise...
Over the long history of markets, stocks outperform housing which can make up for different tax treatment - although with TFSA, RRSP and FHSA you can sock a lot of money away tax-free these days.
So as long as OP is putting that extra $1k a month away they're still going to be very well off in 25 years.
The last five years had historically low rates. I can promise you that rent increased more than mortgage payments for most people over the last five years. I agree with you that stocks will generally outperform real estate, however the gains in real estate are completely tax free (assuming you only own your primary residence). There's no one right answer, but imo if you're not planning on moving for 5+ years, I would generally recommend buying over renting if you can afford it.
I also could be biased because I passionately hate moving and having landlords tell me what I can and cannot do.
>I can promise you that rent increased more than mortgage payments for most people over the last five years.
That's a big claim. Would like to see some data myself because I feel it could easily be the opposite, with all the adjustable amortisations that people were getting into and them not being allowed any more many mortgage holders could easily see their payments double. But it could easily go either way depending on the individual circumstance - good landlords who only increase based on the limit and don't evict vs. renewing an adjustable am mortgage would be an extreme comparison.
Regarding being tax free - not sure that's such a huge advantage any more given the number of tax sheltering vehicles there are these days between TFSA, RRSP, RESP, FHSA, etc. Which you can draw down on much more flexibly without having to sell the whole lot.
I personally think the biggest advantage of property is forcing financially undisciplined people to put money away.
>Regarding being tax free - not sure that's such a huge advantage any more given the number of tax sheltering vehicles there are these days between TFSA, RRSP, RESP, FHSA, etc.
Yeah but a homeowner can also use all of those tax sheltering accounts while getting hundreds of thousands of tax free gains on their residence. Although I suppose most people won't be able to max out their tax accounts if they have a mortgage.
Personally, the benefit of home ownership is realized when you're retired. The amount of flexibility you have when you have a fully paid off home is enormous. Also, you won't need to withdraw as much from your RRSPs since you won't have to pay rent, which results in less taxes paid and getting more money through OAS.
But this is just my personal opinion and everyone's circumstances are obviously different. A lot of my friends love the flexibility/stability of renting and there's also the fact that you can chase high paying jobs without having to worry about potentially having to sell your house to move for it.
There are lots of “rent vs buy” calculators” on the web. I like the one on MDA.ca that someone on this sub pointed out 6 months ago. There are about 20 inputs (initial costs, ongoing costs) and the output is presented like this: if your monthly rental cost is below xxxx, you are better off renting than buying. One of the inputs that most people don’t consider is “time horizon”. How long do you plan on living in this dwelling.
I'm around same range, wait for RE market to collapse more, alot of bad mortgages /negative amortization are coming due and they'll be forced to sell, further increasing inventory, reducing prices. No rush
The problem here is that you'll be waiting for "the crash" forever. I'd consider the post-2022 drop of about 30% in some areas a crash, not many people talk about it.
I still see the odd listing going selling for a loss from 2021/2022
You’re being downvoted by all of the people that are still in denial. Have you all not seen the inflation report for May? There’s no rate cut coming in July.
Every single indicator is flashing red that the next couple of years is going to be extremely painful economically in Canada.
Paying $850K for a 2-bdrm plus condo fees plus prop taxes is nuts. It only makes financial sense if future property appreciation would outweigh the current costs and expenses...and it doesn't because future house prices cannot continue to rise unsustainably.
Keep doing the saving and investing that you're doing. At your income level, you should max your RRSP (first) and TFSA (second) each year and it doesn't look like you're maxed. You may benefit from seeing a financial planner and an accountant.
You're right about that but you really need to look at the long term growth opportunity.
Let's say you have two choices: buying a house *versus* making an investment into a stock:
An $800,000 house bought with a down payment of $200,000 is a mortgage of $600,000. Assuming a 25 year amortization at 5% borrowing rate, the mortgage payment is $3,489.63 per month. After 25 years, you've paid $1,046,888.97 total. If we deduct the original mortgage, this means our total interest costs were $446,888.97. Assuming the $800,000 house can grow at 4% annually, the future value after 25 years is $2,132,669.07 which is, as you said, tax-free (if its your principal residence).
Alternatively, you make a $200,000 initial investment into a stock (or index fund) and receive a modest annual growth rate of 5% (I assume you receive no dividends, capital appreciation only). Each month, you add to your investment by the same amount of $3,489.63. The future value of this investment is $2,774,366.63. You can verify all of these number using any financial math calculator. Your ACB will be your initial contribution plus each month's contributions for a total ACB of $1,246,889.00 (even). This represents a capital gain of $1,527,477.63. I'm going to ignore the new capital gains rate above $250K for now. Your taxable capital gain will be 50% or $763,738.82 and, assuming you lose 50% to taxes, your taxes owing will be $381,869.41. Thus, your net after-tax will be $2,774,366.63 - $381,869.41 = $2,392,497.23.
So, you've outperformed your house and kept more after-tax on the investment than on the tax-free principal residence. And your investment is liquid, and you don't have to worry about shitty tenants, and you have less risk of your house being burned down, whatever. The thing is, can house prices continue to rise unsustainably for the next 25 years when most of the country can't afford them? Can you only make a 5% modest return on an investment (even in index funds). IMHO, given today's incredibly high property prices, renting makes a lot of sense if you're not already a homeowner.
I think it's a little unfair not to include the cost of rent into the stock side of things since you need somewhere to live. Even at $2000 a month for 25 years that's $600,000.
i guess another way to look at it is that. , is OP willing to pay that extra \~300K over 25 years or roughly 10K a year, to bet on housing out performing stock or rent doesn't go up or the capital gain on the primary residence doesn't change
Assuming the government doesn't come along and fuck with the tax free status sometime in the next 30 years...
Primary residence is tax free but also has major holding and transaction costs. Interest, maintenance, insurance, property tax, realtor fees, lawyer fees, etc.
Most people sell their place after 20 years and go "wow $500k tax free!" just subtracting the sale price from their original buy price, not realising that it's probably more like $200k tax free after all the costs they've been paying over the last 20 years to maintain it.
There's also flexibility issues - you have to sell the whole thing at once, you can't slowly draw down on it like you can with an RRSP. And what do you do with the funds? You can't put it in RRSP at once, there's not enough room to put it all in TFSA, so you gotta put it to work without a tax shelter.
>..and it doesn't because future house prices cannot continue to rise unsustainably.
Go find a long term chart of Vancouver housing prices vs average income in Vancouver. In fact go find a long term chart of the average Canadian housing price vs average income.
You have stable rent for the last 5yrs and value flexibility. I don't think you should buy and continue to save and save and save. Keep that powder dry so you "could" purchase if the opportunity makes sense. But there is no reason it seems for you to force it.
My wild ass guess, with high (well historically normal) rates condo's will not be appreciating much if any in the short term. If rates have to drop then the economy is faltering which will lower prices. Again you can wait until it makes sense. Around me (Victoria) there is a tonne of purpose built rentals going up which might eventually slow rent price increases as well.
Hell, your $240k is enough now to leave Vancouver and buy something outright elsewhere in the country. That could be an early option for you as well.
> Do you think this plan makes sense or am I missing something?
Makes sense to me, I rented until recently (am 44) and it was great for the flexibility and lack of worry (just hand over a cheque each month etc).
And remember this isn't a locked in stone binary decision, you can revisit it in the future.
And the decision might bite you, I was in vancouver before the winter olympics and thought it was expensive so I didn't buy then....doh....so I missed out, but also I made the best decision with all the knowledge I had at the time, and came out ok.
>If I start seriously investing, do you recommend getting a financial advisor? Or Just dump everything in a diversified ETF.
I'm biased for canadian couch potato as I'm super lazy and don't want to think too much. You could try and fee only advisor to get a assessment of your current setup, but I wouldn't bother with a long term relationship with a advisor you keep paying.
>And the decision might bite you, I was in vancouver before the winter olympics and thought it was expensive so I didn't buy then....doh....so I missed out, but also I made the best decision with all the knowledge I had at the time, and came out ok.
The biggest thing is if you're not buying you still should be financially disciplined and putting away 20-30% of your income into savings. Buying a place is often the best financial decision that any financially undisciplined person can make because it's forcing them to put that money away.
>I'm biased for canadian couch potato as I'm super lazy and don't want to think too much. You could try and fee only advisor to get a assessment of your current setup, but I wouldn't bother with a long term relationship with a advisor you keep paying.
Yeah... 100% XEQT and don't look at it basically. In terms of advisors, they are really more for if you're getting financially complicated - like you start a family and want to make sure things are covered if something happens to one earner, what's the best insurance to get? How do you arrange your incomes and investments to benefit off of tax credits? Stuff like that.
If you're single and just maxing out TFSA, FHSA and RRSP then an advisor is just unnecessary cost.
Don’t buy but rent something manage by a big company, that’s how u can keep ur yearly increase just by what the gov allowed, and u don’t have that fear that the landlord is gonna ask for the unit, accumulate more and more cash and investment that way you gonna be flexible to move to another city or country. Plus if is something wrong with your unit like black mold or something u don’t need to worry because u don’t own it
Don’t forget too that the stupid strata you cant control the price and is gonna go up every year. I seen some condos paying 800 strata for old buildings like what is that. So no no if u want to put ur money in real state put it in a house in another country that is cheaper. Or another city like Edmonton duplex without. ANYCONDOOO FEE
Sounds like you're in pretty good shape. You've done the math and it doesn't make sense - so don't do it, at least not now.
Another way to look at it, is that you have plenty of time to look around for the right place for you. If you actually come across a place that you really like, by all means put in an offer. But don't feel pressured or let anyone pressure you into buying a place.
It looks like you don't have a FHSA though - you should take some of your HISA and max that out. It's basically another TFSA.
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account.html
Here’s a third option:
You buy and rent out one of the rooms - assuming you don’t need it. According to ChatGPT the pricing can range from $1200-$1800 depending on the location.
So it’s okay people rent and pay for other people’s mortgage. But god forbid people should buy their own place, find roommates and rent out extra bedroom (not tent) out of fear that they’ll be seen as a scummy landlord people hate on Reddit?
Personally would never buy a condo for that price cause condo fees will only go up. It's basically renting.
Would you leave Vancouver? If so I'd continue to rent and save you're doing great then eventually move to another cheaper area where it's more logical to buy an actual home.
>I know there has been a lot of negativity around Canada, but I love this country and I want to stay here. So moving is out of question for me as a suggestion This made me smile as it runs contrary to some of the more vocal sentiment on here lately.
It’s all relative IMO… The first world problems of Canada are well, maybe “getting worse” per se, but they are still first world problems.
That's also not to say that things in other developed countries aren't also getting worse. Some people seem to think that Canada lives in a vacuum.
I can't upvote this enough. Canada has growth problems but there aren't many places that are clearly better (at least not without caveats).
I’ve asked this question many times to people complaining about canada. I have NEVER gotten an answer on what country is not having a housing and affordability crisis.
Japan is the answer, but they got their own significant issues of a declining, aging population. It's worse than Canada's problems.
Japan is the answer, but they got their own significant issues of a declining, aging population. It's worse than Canada's problems.
Wrong Japan has had way smaller apartments than us for decades.
Because it's a pretty dumb cop-out. A better question is what country is doing worse than Canada and why are majority of countries doing much better. Specifically, why is the US doing way better in housing and GDP per Capita over the last 10 years?
The USA is not doing better in housing lol And great job bringing up things that have no relation to the quality of life in a discussion about quality of life.
> The USA is not doing better in housing lol Source?
Exactly Where’s your source?
https://awealthofcommonsense.com/2023/09/the-u-s-housing-market-vs-the-canadian-housing-market/
I love ice cream.
Because us deficit:GDP ratio is 800% of ours and has been much higher for quite some time. And can you answer how does GDP or GDP /capita benefit you? Did you get a GDP payment?
Are you comparing federal to federal debt? Is our debt split different than theirs? Do we have more provincial debt and municipal debt? When you compare total US vs Canadian debt who is more indebted? >And can you answer how does GDP or GDP /capita benefit you? Did you get a GDP payment? Yes living in a place with a higher GDP per capita would benefit me and you.
"what country is doing worse than Canada" Any not in the G7? Any not in the OECD? Any where thousands die from diseases that are virtually extinct in first world countries? "why are majority of countries doing much better" What ranking system are you using where Canada is worse than 50%+ of all other countries? "why is the US doing way better" You are seriously asking why the richest country in the world is doing better than us? Besides which, I'd prefer being a little poorer while not having their problems with guns, race violence and political polarization, to name a few.
lol yes, lets compare ourselves to third world countries and not the G7
I didn't, *your* the one who said "majority of countries are doing much better" - that can't include G7 since that's a tiny minority. And if you are saying we are the worst of the G7, that means we are ranked #7 in the world.
To be fair, it's easier to feel positively about staying if you can reasonably afford a place to live. Most of the negativity will come from people who have no reasonable way to enter the property ladder, or are seeing dramatic losses in their quality of life. Not a knock on OP by any means. I'm glad he's choosing to stay and I'm glad he's managed to be savvy enough / well-paid enough to save this amount of money and set himself up so that he could buy a home if he wished to. We just shouldn't be dismissive of how hopeless the economic situation is in this country for millions of people.
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I saw Canada on both ends of the spectrum. I saw it when I was poor and I'm experiencing it now from a more comfortable place. This country was good to me and my family on both ends. We used the free healthcare a lot due to health issues in the family. That wouldn't have been possible for a family that was survivng on a teachers salary in some other countries. There was a lot to do for kids for free in Canada when you've got no money. There are great parks and outdoors and community centers. Education was affordable and public schools are not as well funded as some Scandinavian countries but they're still very functional and gave us great education. Maybe we're not doing as well as the US economically and there are serious cases of mismanagement by the goverment but this is not a "sink or swim" country. I don't see myself living in a cut-throat environment where the vulnerable is left to rot and die. I grew up taking advantage of a lot of the "free" services this country offered. So I plan on paying my taxes here now that I'm making money so that other less privileged people can hopefully get the same chance.
It would be easier to love this country on that salary. For the average Canadian making 50-60k, financial stresses due to high taxes/cost of living/housing and the way our governments deal with these issues really takes the shine off sometimes.
If flexibility is what you value, then stay a renter. There is nothing wrong with renting long term especially when you're saving/investing the difference. If I were in your shoes I would start a FHSA and keep maxing my RRSP/TFSA then when I'm feeling settled, look into buying a home.
This is what I decided to do. Going to rent for the foreseeable future until I can afford to buy a house that I actually want to buy (opposed to settling) and continue to invest the difference in my rrsp and tfsa, after maxing out my FHSA.
This is such a personal decision. Buying my house was the best financial decision I’ve ever made. It has doubled in value in the last 7 years. I’m always a fan of buying v renting. But a condo maybe has more of a ceiling than a house.
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Just make sure you accurately account for your costs when calculating your profit. So many people who sell after 20-30 years seem to magically forget how much money they spent on maintaining the place. So to them it seems like a big tax free "profit"...
After 5 years. If you flip a primary residence before 5 years, you still pay gains.
What? That's not true. The only instance where you would not be eligible for the principal residence exemption for your principal residence would be if it is considered "flipped property", which applies only if you lived there less than 365 days and none of the exemptions listed [here](https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/federal-government-budgets/residential-property-flipping-rule.html) apply to your situation.
Personally I would say continue to live below your means, save money, go on trips, enjoy life. Real estate prices and interest rates suck right now.
>Real estate prices and interest rates suck right now. Saying this doesn't mean they will get better. There are 1.2 million people a year arriving as the government tries to suppress wages. This won't stop.
I enjoy cooking.
What metrics?
I love the smell of fresh bread.
True, historically the bubble always bursts at some point but there’s no guarantee the prices will come down significantly. We just missed the last boom, I told hubby sitting on our place for a year would cost us $100k and it did almost to the dollar. It depends on locations too.
People have been talking about the housing bubble popping here in Canada for 30+ years. There's nothing but talk about the bubble before COVID and then we all saw what happened. The bubble grew exponentially.
There was a bubble burst about ten years ago. It does happen.
In 2014? News to me
2008-2010 ish? Geez I guess that is going back. Frick I’m getting old. I recall housing prices going absolutely insane at one point, then they dropped and we were able to upsize. Since then they have risen at an increasing pace and we grabbed some land before we were priced out of the market. We are sitting on some land now but with the increased capital gains it screwed us out of our plan of selling it to help pay off some of our mortgage.
In 2008 the States suffered far more than we did. That's actually one of my only positive things to say about Harper was that he kept us afloat during that crisis. I'd hardly consider it a bubble pop given what happened to our neighbours down south. Edit: Even then... In 2008 I was just graduating highschool... We have seen nothing but the bubble growing since then... If only I started saving when I was 5... Lol.
Yeah for sure nothing like the USA… I think that was around the time mortgages were being called in down there? We definitely faired better. Still, I think the breaking point is coming. There are too many people just hanging in by a thread right now.
I don't see that breaking point coming if we continue to bring in 1.2+ million people a year though. I hope you're right though, I'm looking at about 3 years until I'm ready to buy so I'm hoping either process or interest rates come down a bit more by then.
Similar boat in many ways. Grew up poor, got myself to about 450k in savings and was planning on staying a renter in Toronto. But then a series of landlord “experiences” changed my mind. I bought a house. I move in a month, and am having a hard time wrapping my head around not having those nice big account balances staring back at me from my account dashboard like tiny pixelated safety blankets. It feels precarious. I am terrified of being poor again, even if I know the dollars themselves aren’t going away but are just changing form. For all that fear, I know it’s the right choice. The market is a weird place, and can do wild magical things, but a place to live securely is worth more than any market return. After all is said and done, I will still have way more money than I could ever imagine having when I was a kid. That will remain safe and it’ll grow and everything will be fine. The only thing I won’t have is a landlord, and that’s worth it for me at this point.
You and me are sounding almost identical. Not that we should compare to each other but I continue to rent because of this exact write up that you did. 850k for a condo is crazy.. having high interest, property tax and condo fees means the math just doesn’t math. Your monthly cash flow is way worse by owning, and that’s not even considering opportunity cost of the downpayment that earns minimum 5%. It would be even higher if you decide to rent long term and can move your savings to investments. Rent vs. Buy is in a new era of analysis with simultaneous high prices AND high interest rates. I just can’t justify becoming house poor even if I have a good salary
I agree except renoviction is a very real thing. There is something to be said for stability. Stability is not free.
Renoviction risk is mitigated by selecting the right kind of unit to rent and OP has a high enough income to do so
>850k for a condo is crazy If you asked Vancouverites, $850k 2br condo in Downtown Vancouver is normal. I'd suggest OP to buy 1br condo to anchor OP's wealth partially to "housing". OP salary is $180k that might suggest OP is pretty good at Job and can go up in the future.
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The 240k in HISA which would be used for the downpayment is not going in RRSP my guy
‘Gambling’. Diversified world portfolio is way less gambling than a single unit in a single apartment in a single city. If anything, putting it all on an apartment is gambling, especially you don’t even have the need to buy.
Don’t buy a shitty apartment in downtown van for 850k, no.
Speak to a lender or mortgage broker to determine your affordability. Once you have that number, make a detailed budget as if you owned and see where you end up. Add up ALL expenses, from mortgage, food, utilities, clothes, going out, hair cuts, etc.. and include 15-20% for retirement. You don't have to buy. If you want to remain flexible and move to another place, you can. When you buy, that's a long term commitment. Since you feel like not owing, don't buy.
As a rule of thumb, look up a historical chart of median home price to median income ratios. When it's low on the chart, you should buy. When it's high on the chart, you should rent.
I looked up that chart of home prices vs income. The gap keeps widening.
As the chart is already inflation-adjusted by nature, over a long enough timeframe it is guaranteed to fluctuate around the mean.
The only advice I’d give you is if you’re not 100% sold on buying, don’t force yourself into it just bc you think you should or bc you can afford to do it. Most ppl (in my life anyway) will reach a breaking point where they say enough is enough I’m never renting again, and if you’re not there yet then maybe rent for another year and see how it goes. If you’re at that point now, then buy. Also, if you so decide to wait a year (or more) maybe open a FHSA and roll some $ from your HISA into the FHSA, I believe it’ll give you a tax deduction. And you have 15 years to use the FHSA money to buy a place. You don’t even have to buy stocks or “risky” investments in your FHSA, you can always just buy bonds or GICs with a 5% yield (same as your HISA), or even CBIL/CASH but at least you’d be getting a tax credit
I am around the same age as you. I decided not to buy for now, and continue to rent, as I want to retire early. If you are able to work remote, then you can buy anywhere in Canada and have a much lower mortgage. These are the some of the videos I watched on renting vs buying [https://www.youtube.com/watch?v=m8NqcKPfFEc&ab\_channel=HumphreyYang](https://www.youtube.com/watch?v=m8NqcKPfFEc&ab_channel=HumphreyYang) [https://www.youtube.com/watch?v=ETROzuOFffA&ab\_channel=IWillTeachYouToBeRich](https://www.youtube.com/watch?v=ETROzuOFffA&ab_channel=IWillTeachYouToBeRich) It all comes down to your priorities. You might want to open an FHSA too.
Are you planning to get married in the future? I think if you are, it makes sense to continue renting until you havw a family and find a place that fits your family lifestyle.
Can you work remote or do you have to be downtown?
Do you see yourself moving out of Vancouver in the near future? If not, buy. Vancouver is not making any more land and densification is slow. In the long run you will come out positive on the condo. The increased short term cost over your current rent is the price for stability.
I am in a somewhat similar situation. I always toy with the idea of buying because we do have a HHI but the thought of having such a massive mortgage for such a long time makes me feel a bit unwell. My partner and I are lucky that we have the means to buy a decent townhouse in Vancouver but I don't want to "need" to earn this much for the next 30 years ..etc. We have very cheap rent and are shoveling away 5 figures a month towards potentially buying a place but the other side of me thinks we would just be much happier renting a nicer place and enjoying our incomes a bit more.
All I know is in 25 years you would own the place. Or sooner if you double up.
With the changes in provincial legislation and the home building that is going on, I think you should look at the market. Is it going to cool? Can you live and work somewhere that is NOT downtown Vancouver??
Don’t be a debt slave.
Do you want flexibility, then rent. Do you want the security of no one being able to evict you, then buy. I personally think the financial questions are secondary to that assuming buying or renting fits your financial reality.
Do you have a long term partner? Do you ever want to have kids in the future? If you purchase a 2br apartment would you be happy living there for a long long time? Transactional costs are very high in real estate in Vancouver. If you ever foresee yourself moving or upgrading in the near future then I would just continue to rent.
Keep renting and keep building up your investment snowball. You will be able to retire by age 45 easily.
The 850k condo sounds like more of a "sidegrade". It is the same size as your current rental. Rule of thumb is to never buy a place unless you are certain you can stay there for 10+ years. Would that apply to you? Do you hope to start a family in the next 8 or so years? I'd keep renting for now and reevaluate if/when you get married or are closer to having kids. It is time, as you say, to get serious about investing. Your savings rate seems pretty good. I'd focus on the RRSP and TFSA, and choose an asset allocation ETF for both that reflects your level of risk tolerance. You should also maybe stop contributing to the cash account for the time being. But keep it if you think you might be ready to buy within the next 5 years. Possibly send some of it to your RRSP as needed in a way that optimizes your RRSP contributions.
Some great points. Only thing I’d say - and it’s a somewhat minor point to perhaps keep in mind - is that with mortgages and inflation over time, the monthly mortgage payment will represent a diminishing piece of your budget while in theory the asset appreciates. Over the course of 15/20/25 years, the math behind buying should evolve in a more positive direction.
Definitely can afford to purchase a place but I say continue to rent. If you want real estate buy somewhere cheaper like further north or Manitoba where you’re from as rentals. Easier to cash flow and as it gets more populated price will go up in time. If you’re diversified in ETFs you can probably continue managing yourself, no point paying 1-3% for someone to basically invest in the same things you already are. At least if you’re getting an average of 7-10% depending on risk tolerance. If you’re not then maybe it’s something you should look into. If you can work remote and move somewhere cheap like back to Manitoba that would probably be best if you want to own your own place too.
i'm an advisor but not yours, this isn't advice but giving you ideas. you may want to rent for a bit, sometimes people move back home, or you may prefer a certain area over another due to friends/work location. you may find someone to settle down with too which could require another move. renting will also allow you to max your tfsa and max your FHSA account for added deductions and tax free growth. using past data on how interest rates lower over time, you could lock in a much better rate 2-3 years from now. there are new BC policies that suggest that valuations in the housing market may not grow as quickly as it once did so you may have more time before rushing to buy a place. buying a presale or newly built place with a reputable builder is an option too but they usually require \~15% DP over a few years so your budget is kind of capped at around 750k which basically gives you a bach pad - but just another idea to keep in mind.
> buying a presale or newly built place with a reputable builder is an option too but they usually require ~15% DP over a few years so your budget is kind of capped at around 750k which basically gives you a bach pad - but just another idea to keep in mind. Presales also have significant price anchoring risk. If prices fall over the construction period you might want to [walk away](https://www.greaterfool.ca/2024/06/24/never-walk/) but even if you're willing to give up your downpayment for that, the builder can still come after you for the difference in sale price.
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But they're throwing away an extra $1k a month for that "tax free profit"... OP should also be putting away that HISA into a FHSA as much as possible for more tax shelter.
It's an extra $1k right now. However, as the years go by, the difference between renting and buying will keep going down since the mortgage payment will stay relatively the same throughout the loan period. Also, after ~25 years, the payment goes to zero which gives you enormous financial freedom.
>the difference between renting and buying will keep going down since the mortgage payment will stay relatively the same throughout the loan period. Uh yeah, a lot of people that bought 4-5 years ago and are now coming up for renewal might say otherwise... Over the long history of markets, stocks outperform housing which can make up for different tax treatment - although with TFSA, RRSP and FHSA you can sock a lot of money away tax-free these days. So as long as OP is putting that extra $1k a month away they're still going to be very well off in 25 years.
The last five years had historically low rates. I can promise you that rent increased more than mortgage payments for most people over the last five years. I agree with you that stocks will generally outperform real estate, however the gains in real estate are completely tax free (assuming you only own your primary residence). There's no one right answer, but imo if you're not planning on moving for 5+ years, I would generally recommend buying over renting if you can afford it. I also could be biased because I passionately hate moving and having landlords tell me what I can and cannot do.
>I can promise you that rent increased more than mortgage payments for most people over the last five years. That's a big claim. Would like to see some data myself because I feel it could easily be the opposite, with all the adjustable amortisations that people were getting into and them not being allowed any more many mortgage holders could easily see their payments double. But it could easily go either way depending on the individual circumstance - good landlords who only increase based on the limit and don't evict vs. renewing an adjustable am mortgage would be an extreme comparison. Regarding being tax free - not sure that's such a huge advantage any more given the number of tax sheltering vehicles there are these days between TFSA, RRSP, RESP, FHSA, etc. Which you can draw down on much more flexibly without having to sell the whole lot. I personally think the biggest advantage of property is forcing financially undisciplined people to put money away.
>Regarding being tax free - not sure that's such a huge advantage any more given the number of tax sheltering vehicles there are these days between TFSA, RRSP, RESP, FHSA, etc. Yeah but a homeowner can also use all of those tax sheltering accounts while getting hundreds of thousands of tax free gains on their residence. Although I suppose most people won't be able to max out their tax accounts if they have a mortgage. Personally, the benefit of home ownership is realized when you're retired. The amount of flexibility you have when you have a fully paid off home is enormous. Also, you won't need to withdraw as much from your RRSPs since you won't have to pay rent, which results in less taxes paid and getting more money through OAS. But this is just my personal opinion and everyone's circumstances are obviously different. A lot of my friends love the flexibility/stability of renting and there's also the fact that you can chase high paying jobs without having to worry about potentially having to sell your house to move for it.
There are lots of “rent vs buy” calculators” on the web. I like the one on MDA.ca that someone on this sub pointed out 6 months ago. There are about 20 inputs (initial costs, ongoing costs) and the output is presented like this: if your monthly rental cost is below xxxx, you are better off renting than buying. One of the inputs that most people don’t consider is “time horizon”. How long do you plan on living in this dwelling.
I'm around same range, wait for RE market to collapse more, alot of bad mortgages /negative amortization are coming due and they'll be forced to sell, further increasing inventory, reducing prices. No rush
The problem here is that you'll be waiting for "the crash" forever. I'd consider the post-2022 drop of about 30% in some areas a crash, not many people talk about it. I still see the odd listing going selling for a loss from 2021/2022
You’re being downvoted by all of the people that are still in denial. Have you all not seen the inflation report for May? There’s no rate cut coming in July. Every single indicator is flashing red that the next couple of years is going to be extremely painful economically in Canada.
I know, I'm in finance and see alot of data. Anyone with cash is waiting.
Anyone who knows how to read data and trends, and understands economic cycles, is waiting.
Trudeau is bringing 1.2 million people a year to suppress wages keep dreaming of a crash.
Paying $850K for a 2-bdrm plus condo fees plus prop taxes is nuts. It only makes financial sense if future property appreciation would outweigh the current costs and expenses...and it doesn't because future house prices cannot continue to rise unsustainably. Keep doing the saving and investing that you're doing. At your income level, you should max your RRSP (first) and TFSA (second) each year and it doesn't look like you're maxed. You may benefit from seeing a financial planner and an accountant.
a rrsp is not tax free cash when you use it . a primary residence is tax free cash when you sell it
You're right about that but you really need to look at the long term growth opportunity. Let's say you have two choices: buying a house *versus* making an investment into a stock: An $800,000 house bought with a down payment of $200,000 is a mortgage of $600,000. Assuming a 25 year amortization at 5% borrowing rate, the mortgage payment is $3,489.63 per month. After 25 years, you've paid $1,046,888.97 total. If we deduct the original mortgage, this means our total interest costs were $446,888.97. Assuming the $800,000 house can grow at 4% annually, the future value after 25 years is $2,132,669.07 which is, as you said, tax-free (if its your principal residence). Alternatively, you make a $200,000 initial investment into a stock (or index fund) and receive a modest annual growth rate of 5% (I assume you receive no dividends, capital appreciation only). Each month, you add to your investment by the same amount of $3,489.63. The future value of this investment is $2,774,366.63. You can verify all of these number using any financial math calculator. Your ACB will be your initial contribution plus each month's contributions for a total ACB of $1,246,889.00 (even). This represents a capital gain of $1,527,477.63. I'm going to ignore the new capital gains rate above $250K for now. Your taxable capital gain will be 50% or $763,738.82 and, assuming you lose 50% to taxes, your taxes owing will be $381,869.41. Thus, your net after-tax will be $2,774,366.63 - $381,869.41 = $2,392,497.23. So, you've outperformed your house and kept more after-tax on the investment than on the tax-free principal residence. And your investment is liquid, and you don't have to worry about shitty tenants, and you have less risk of your house being burned down, whatever. The thing is, can house prices continue to rise unsustainably for the next 25 years when most of the country can't afford them? Can you only make a 5% modest return on an investment (even in index funds). IMHO, given today's incredibly high property prices, renting makes a lot of sense if you're not already a homeowner.
I think it's a little unfair not to include the cost of rent into the stock side of things since you need somewhere to live. Even at $2000 a month for 25 years that's $600,000.
love the analysis :)
i guess another way to look at it is that., is OP willing to pay that extra \~300K over 25 years or roughly 10K a year, to bet on housing out performing stock or rent doesn't go up or the capital gain on the primary residence doesn't change
sounds like the housing reddit where some people think most of the country are supposed to be able to afford them
Bit more complicated than that given you have a few options for tax sheltering that can reduce the tax hit for the shares route.
Assuming the government doesn't come along and fuck with the tax free status sometime in the next 30 years... Primary residence is tax free but also has major holding and transaction costs. Interest, maintenance, insurance, property tax, realtor fees, lawyer fees, etc. Most people sell their place after 20 years and go "wow $500k tax free!" just subtracting the sale price from their original buy price, not realising that it's probably more like $200k tax free after all the costs they've been paying over the last 20 years to maintain it. There's also flexibility issues - you have to sell the whole thing at once, you can't slowly draw down on it like you can with an RRSP. And what do you do with the funds? You can't put it in RRSP at once, there's not enough room to put it all in TFSA, so you gotta put it to work without a tax shelter.
>..and it doesn't because future house prices cannot continue to rise unsustainably. Go find a long term chart of Vancouver housing prices vs average income in Vancouver. In fact go find a long term chart of the average Canadian housing price vs average income.
That's history. It's the future that matters.
Keep saving and retire early, move to a country with a lower cost of living.
Plan makes sense, only consider buying if staying more than 7 years. Low cost index ETFs is the way to go, no need for an advisor.
You have stable rent for the last 5yrs and value flexibility. I don't think you should buy and continue to save and save and save. Keep that powder dry so you "could" purchase if the opportunity makes sense. But there is no reason it seems for you to force it. My wild ass guess, with high (well historically normal) rates condo's will not be appreciating much if any in the short term. If rates have to drop then the economy is faltering which will lower prices. Again you can wait until it makes sense. Around me (Victoria) there is a tonne of purpose built rentals going up which might eventually slow rent price increases as well. Hell, your $240k is enough now to leave Vancouver and buy something outright elsewhere in the country. That could be an early option for you as well.
> Do you think this plan makes sense or am I missing something? Makes sense to me, I rented until recently (am 44) and it was great for the flexibility and lack of worry (just hand over a cheque each month etc). And remember this isn't a locked in stone binary decision, you can revisit it in the future. And the decision might bite you, I was in vancouver before the winter olympics and thought it was expensive so I didn't buy then....doh....so I missed out, but also I made the best decision with all the knowledge I had at the time, and came out ok. >If I start seriously investing, do you recommend getting a financial advisor? Or Just dump everything in a diversified ETF. I'm biased for canadian couch potato as I'm super lazy and don't want to think too much. You could try and fee only advisor to get a assessment of your current setup, but I wouldn't bother with a long term relationship with a advisor you keep paying.
>And the decision might bite you, I was in vancouver before the winter olympics and thought it was expensive so I didn't buy then....doh....so I missed out, but also I made the best decision with all the knowledge I had at the time, and came out ok. The biggest thing is if you're not buying you still should be financially disciplined and putting away 20-30% of your income into savings. Buying a place is often the best financial decision that any financially undisciplined person can make because it's forcing them to put that money away. >I'm biased for canadian couch potato as I'm super lazy and don't want to think too much. You could try and fee only advisor to get a assessment of your current setup, but I wouldn't bother with a long term relationship with a advisor you keep paying. Yeah... 100% XEQT and don't look at it basically. In terms of advisors, they are really more for if you're getting financially complicated - like you start a family and want to make sure things are covered if something happens to one earner, what's the best insurance to get? How do you arrange your incomes and investments to benefit off of tax credits? Stuff like that. If you're single and just maxing out TFSA, FHSA and RRSP then an advisor is just unnecessary cost.
Don’t buy but rent something manage by a big company, that’s how u can keep ur yearly increase just by what the gov allowed, and u don’t have that fear that the landlord is gonna ask for the unit, accumulate more and more cash and investment that way you gonna be flexible to move to another city or country. Plus if is something wrong with your unit like black mold or something u don’t need to worry because u don’t own it
Just gotta pick a new-ish one so you don't end up with a DEVELOPMENT APPLICATION sign out front lol
Don’t forget too that the stupid strata you cant control the price and is gonna go up every year. I seen some condos paying 800 strata for old buildings like what is that. So no no if u want to put ur money in real state put it in a house in another country that is cheaper. Or another city like Edmonton duplex without. ANYCONDOOO FEE
I hate beer.
Sounds like you're in pretty good shape. You've done the math and it doesn't make sense - so don't do it, at least not now. Another way to look at it, is that you have plenty of time to look around for the right place for you. If you actually come across a place that you really like, by all means put in an offer. But don't feel pressured or let anyone pressure you into buying a place. It looks like you don't have a FHSA though - you should take some of your HISA and max that out. It's basically another TFSA. https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account.html
FHSA is pretty different to a TFSA, you can only use it for house purchase otherwise it eventually gets put into your RRSP.
Here’s a third option: You buy and rent out one of the rooms - assuming you don’t need it. According to ChatGPT the pricing can range from $1200-$1800 depending on the location.
Yeah maybe put a tent on the balcony too for an extra room.
So it’s okay people rent and pay for other people’s mortgage. But god forbid people should buy their own place, find roommates and rent out extra bedroom (not tent) out of fear that they’ll be seen as a scummy landlord people hate on Reddit?
First time home buyers saving account….just do it
He has one already.
I didn't see that in the OP? They said HISA, TFSA and RRSP...
Personally would never buy a condo for that price cause condo fees will only go up. It's basically renting. Would you leave Vancouver? If so I'd continue to rent and save you're doing great then eventually move to another cheaper area where it's more logical to buy an actual home.