globe and mail put out a nice tool to help you understand what you can spend:
http://www.theglobeandmai...fe-ratio/article17333137/

Really put poop in perspective.
- Schenn-Sational!

Yeah, but...

Most couples (everyone in Toronto, really) will tell you that they ended up getting in a bidding war, and spending way more than they had originally planned.

Your first couple of years can be tight, but you are new homeowners, so you don't take the beach vacation in February, and you put off a new car.

Once your careers start going, your payments become more comfortable.

Hell, my dad tells the story of how they wanted to buy a bigger house - just a few blocks away in our neighbourhood. But it was $21,000, and there was no way they thought they could afford that much. So they bought for $19,800, and he still thought that there was no way they could ever afford it.

But Kessel is the big salary number being traded, why would cash strapped teams pay it out (bonus)?
- LeafMan

a) the original rumour doesn't say it's Kessel for Semin. That's just speculation

b) If it was Kessel for Semin, you're paying similar dollars for a player who'll actually add something to the team, that they desperately need, and plays an offensive style that'll generate excitement.

So I said, "C'mon, Bixie: You know damn well that Phil Kessel can spell charcuterie!"

Hello?

Is this mic on?

You guys suck.
- Atomic Wedgie

Too fancy for Phil.

Paid $75,000 for my house, now at $625,000

Thank you dad!
- LeafMan

Nice!!!

My inlaws paid next to nothing, and then when the interest rates hiked in the early 80s my mother in law's dad paid it off and gave them the remainder of the loan at 0% interest... it's now worth about 400k in a decent part of Hamilton

Yeah, but...

Most couples (everyone in Toronto, really) will tell you that they ended up getting in a bidding war, and spending way more than they had originally planned.

Your first couple of years can be tight, but you are new homeowners, so you don't take the beach vacation in February, and you put off a new car.

Once your careers start going, your payments become more comfortable.

Hell, my dad tells the story of how they wanted to buy a bigger house - just a few blocks away in our neighbourhood. But it was $21,000, and there was no way they thought they could afford that much. So they bought for $19,800, and he still thought that there was no way they could ever afford it.
- Atomic Wedgie

You gotta put some level of uncertainty in there, salary wise, though.

Going best case scenario is why so many people wound up with mortgages worth more than their homes.

Yeah, but...

Most couples (everyone in Toronto, really) will tell you that they ended up getting in a bidding war, and spending way more than they had originally planned.

Your first couple of years can be tight, but you are new homeowners, so you don't take the beach vacation in February, and you put off a new car.

Once your careers start going, your payments become more comfortable.

Hell, my dad tells the story of how they wanted to buy a bigger house - just a few blocks away in our neighbourhood. But it was $21,000, and there was no way they thought they could afford that much. So they bought for $19,800, and he still thought that there was no way they could ever afford it.
- Atomic Wedgie

The problem is once careers get going people think they need/deserve something bigger and flashier and dig themselves a bigger hole.

a) the original rumour doesn't say it's Kessel for Semin. That's just speculation

b) If it was Kessel for Semin, you're paying similar dollars for a player who'll actually add something to the team, that they desperately need, and plays an offensive style that'll generate excitement.
- Schenn-Sational!

Wasn't it just a player over 23.

If its something like Gardener, 24th overall and $21mil for 5th overall... seems fair to me.

Wasn't it just a player over 23.

If its something like Gardener, 24th overall and $21mil for 5th overall... seems fair to me.
- Schennski

yup, that's what it was.

You gotta put some level of uncertainty in there, salary wise, though.

Going best case scenario is why so many people wound up with mortgages worth more than their homes.
- Schenn-Sational!

That only happened in the US, and the housing situation (and housing financing situation) is completely different here.

You can't compare them.

Nice!!!

My inlaws paid next to nothing, and then when the interest rates hiked in the early 80s my mother in law's dad paid it off and gave them the remainder of the loan at 0% interest... it's now worth about 400k in a decent part of Hamilton
- lumlums

I had a great dad.

I paid him $20,000 cash and then got a $55,000 dollar loan. In a roundabout way, I really paid nothing, I took care of all his bills through a joint account, so I got the money since it was in my name when he passed away.

You gotta cap yourself on a mortgage. I bought the pooptiest house in the nicest neighborhood for over 100K less than my max mortgage allowment.
- RogerRoeper

yeah, what the banks *will* give you is ridiculous.

And, you need to have at least a few months income saved in light of today's job climate!

globe and mail put out a nice tool to help you understand what you can spend:
http://www.theglobeandmai...fe-ratio/article17333137/

Really put poop in perspective.
- Schenn-Sational!

39% I can do this!

The problem is once careers get going people think they need/deserve something bigger and flashier and dig themselves a bigger hole.
- Canada Cup

Yeah, but even then...

We gutted our house and renovated a few years ago.

Even if we both lost our jobs and had to sell, it still would have been a good financial move. The Toronto housing market is kicking the arse of the stock market - and it's a tax-free gain.

Yeah, but even then...

We gutted our house and renovated a few years ago.

Even if we both lost our jobs and had to sell, it still would have been a good financial move. The Toronto housing market is kicking the arse of the stock market - and it's a tax-free gain.
- Atomic Wedgie

Hard on the new-comers to the area, or the young starting out in TO.

Hard on the new-comers to the area, or the young starting out in TO.
- bixll

Most of the younger crowd are buying in the burbs.

You should see our neighborhood, all young couples now. Every house that went on sale on our street has sold within 10 days. It's crazy.

Next door sold in two days.

Hard on the new-comers to the area, or the young starting out in TO.
- bixll

I do worry that my kids will never live in Toronto.

But to guys like Glucky, I'd honestly say that the sooner you can get in the market, the better off you will be.

A friend bought his house waaaaaaaaay before anyone else in our group bought.

Looking back, we flushed money down the rental toilet while he was building equity.

Tax-free equity.

Most of the younger crowd are buying in the burbs.

You see our neighborhood, all young couples now. Every house that went on sale on our street has sold within 10 days. It's crazy.
- LeafMan

How far are you from the City ?

I live in Pickering love it. I'm near the lake and close to Toronto.

How far are you from the City ?
- bixll

I'm in Mississauga, Lorne Park area. So not far at all.

I like that spreadsheet. Especially as we came in at just under 31% (low mortgage, bought car in cash, no kids, no debt)
- lumlums

WOW, I don't know how you got it that low.

We have no mortgage and only 1 car payment of 546 and our ratio was 31.9. Our monthly income is not terrible, but we're not wealthy

Most of the younger crowd are buying in the burbs.

You should see our neighborhood, all young couples now. Every house that went on sale on our street has sold within 10 days. It's crazy.

Next door sold in two days.
- LeafMan

I'm in mid-town Toronto, and they had to put an addition on the school (built in the 1920s) to accommodate the huge influx of new kids (full-day kindergarten created some of the need for new space, but not all).

And now they are talking about building another addition.

So I don't know how young couples are affording to buy into my neighbourhood, but then again, I'm sure that's what people were saying 11 years ago when we bought into the neighbourhood.

I do worry that my kids will never live in Toronto.

But to guys like Glucky, I'd honestly say that the sooner you can get in the market, the better off you will be.

A friend bought his house waaaaaaaaay before anyone else in our group bought.

Looking back, we flushed money down the rental toilet while he was building equity.

Tax-free equity.
- Atomic Wedgie

I'm with you. I'd buy a condo downtown ASAP, just to get my foot in the door... but Katherine would never go for that. Hates the idea of a condo.

I'm in mid-town Toronto, and they had to put an addition on the school (built in the 1920s) to accommodate the huge influx of new kids (full-day kindergarten created some of the need for new space, but not all).

And now they are talking about building another edition.

So I don't know how young couples are affording to buy into my neighbourhood, but then again, I'm sure that's what people were saying 11 years ago when we bought into the neighbourhood.
- Atomic Wedgie

Living above their means.

Two cars and fancy crap. You start to wonder.

WOW, I don't know how you got it that low.

We have no mortgage and only 1 car payment of 546 and our ratio was 31.9. Our monthly income is not terrible, but we're not wealthy
- Aetherial

I was smart with my car- saved up and bought it outright.

Insurance is kicking my ass, but what are you gonna do?

I'm with you. I'd buy a condo downtown ASAP, just to get my foot in the door... but Katherine would never go for that. Hates the idea of a condo.
- Schenn-Sational!

I don't think condos are quite the same slam-dunk.

I haven't really done the math, but I've talked quite a bit about it with friends in real estate.

Those condo fees are a killer (it's like you are paying rent, in a way), and with the amount of new construction in the Toronto area these days, your investment isn't as solid as a home.

Just my opinion.