Does this make sense?

**parafly** · 05-19-2016, 07:54 PM

You need to provide more information. How much do you have in savings? What are your partner's wages? What are his or her planned financial responsibilities for the condo?

Judging by your income only, you are setting yourself up for disaster. You can't afford the house or the car.

**97guns** · 05-19-2016, 08:01 PM

buy something cheaper, buy as necessity not as luxury, you can buy a nice car and cut that payment in half. a $17/hr job does not warrant a $37000 car, as usual just my opinion

**bjl584** · 05-20-2016, 03:14 AM

Based on the rule of thumb to not let your car payment exceed 10% of your monthly take home pay, you are way out of line. The car you want is twice what you should be paying per month. Also, financing for 7 years is a huge red flag. I'd never finance a car for that long. You shouldn't be financing for more than 36 months. You need to find a less expensive car.

I'm not sure how you define "lover", but I wouldn't purchase a condo or anything else jointly with someone unless I were legally married.

**disneysteve** · 05-20-2016, 04:16 AM

1. Home buying rule: Purchase price of 2.5-3 times annual income with 20% down. You make about 35K/year so that puts the upper limit at about $105,000 - way lower than the $350,000 you're talking about.

I strongly agree with the previous poster. Never make a joint home purchase with someone who isn't your legal spouse.

2. Car buying rule: Monthly payment of no more than 10% of your monthly income for no more than 36 months. That puts you in the range of about $8,000-9,000 vehicle.

The numbers you're talking about are truly insane.

**MonkeyMama** · 05-20-2016, 04:25 AM

No, this does not make sense.

I am from San Francisco area. Our first home was a $260k condo. To get into said condo, we saved about 70% of our income until we had a 20% down payment.

To do that, we never spent more than $5k on a vehicle. & I mean, I had a sporty low miles convertible that was completely immaculate and like new. But it was a 7-year-old model (mostly had sat in a granny's garage) so it only cost $5k. (I don't mean that you have to drive junky cars. You don't want to be spending money on frequent car repairs or frequent car replacements).

& personally I wouldn't buy any car that I couldn't pay cash for. Is more of a "high cost living" point of view. Housing monthly payment will be more than average, so try to make other line items less than average. A $0 car payment is a good place to start.

**feh** · 05-20-2016, 05:35 AM

Originally posted by parafly View Post

You need to provide more information. How much do you have in savings? What are your partner's wages? What are his or her planned financial responsibilities for the condo?

Judging by your income only, you are setting yourself up for disaster. You can't afford the house or the car.

+1000

You don't make nearly enough to purchase a $38K vehicle. And thinking about taking a 7 year loan to pay for it is madness.

**Jluke** · 05-20-2016, 05:43 AM

Originally posted by ForeverStrong View Post

-I still live with my "payrents" (parents house)

continue to live with your parents and hoard as much cash as you can.

do not waste money on a vehicle. if you need a car, 10k or less.
do not purchase a condo - alone or together.

are you saving for retirement?

**snafu** · 05-20-2016, 07:21 AM

The housing market in TO and Vanc. are totally insane. At this moment they are blaming international buyers. It has caught the attention of parliament. What action will they take? Suggest you start comparing cost per square foot! What are you getting for your money? How much have condo fees risen each year? How many have had 'special assessments' imposed?

Would you both consider living in another, less costly city? Look on line and see what you'd pay in Saskatoon or Winnipeg for the same sized condo? With the oil rates nasty Regina is a bargain and the people are so welcoming.

Yes, I know how this sounds to someone TO based

**snafu** · 05-20-2016, 07:58 AM

$ 690. a month for transportation is not a smart action for someone earning $ 16.89 per hour. Deductions for income tax, union dues, CPP, EI and hopefully some sort of RRSP takes it's toll. Likewise, GST + provincial tax for every item leaves how many dollars to use???? Realistically, the first 100 hours worked every month would be needed to pay down the vehicle that is a 'depreciating' asset. It loses value the second you drive it off the lot and continues to be worth less every year.

The housing market in TO and Vanc. are totally insane. At this moment they are blaming international buyers. It has caught the attention of parliament. What action will they take? Unless your sets of parents can pony up the downpayment and your partner earns around $ 144,000. per year, can you afford those rates. Understand straight up that for the first decade, nearly every dollar goes to front loaded interest + municipal tax and insurance. You will likely pay mortgage insurance [PMI] and required, regular insurance.

What are you getting for your money? Compare the cost per square foot. How much have condo fees risen each year? How many have had 'special assessments' imposed?

Would you both consider living in another, less costly city? Look on line to compare what you'd pay in Saskatoon or Winnipeg for the same sized condo? With the oil rates nasty Regina is a bargain and the people are so welcoming.

Yes, I know how this sounds to someone TO based

**Singuy** · 05-20-2016, 11:02 AM

Using a house affordability calculator

If you bought the car, you can only afford a place that cost 81k

If you don't have the car, you can only afford a place that cost 137k.

I don't know how you can ever even come close to getting a loan to sustain some of the cost you are talking about. The bank will loan you 137k MAX and that's if you buy no car.

I would continue to live with parents and get a car that's 10k or less..or not get a car at all and save my beans until your $4-6 increase in pay/hour is fully realized. Revisit this again once you make 40/hr...and perhaps you can get a car that's 10k or less and a place that's 150k.

**dawnwes** · 05-20-2016, 12:06 PM

Oh my word, no, you can't afford any of that, not if you want to eat anyway.

I strongly add the suggestion of not buying together.

Buy a $10K used vehicle, there are plenty of them out there, in good condition, IF you need a vehicle. If not, keep driving what you have.

Mortgage: How much do you have for a downpayment? Do you have 20% of the cost of your place? Have you calculated payments? Have you included taxes, insurance, and HOA in the calculation of your loan amount? Have you added in all of your expenses? Home repair costs? Electricity, gas, water, etc....????

**ThinkingCapital** · 05-20-2016, 12:10 PM

The cost of housing in Toronto is very expensive and it will be even more difficult with an expensive car to pay off. Is there any particular reason you need to buy a new car when you're planning on living in downtown Toronto?

**disneysteve** · 05-20-2016, 12:22 PM

Just to give you a comparison, I earn more than 4 times more than you. I paid $16,000 for my car. There's no way I would even dream of spending 38K on a car on my income.

My daughter just bought her first car last week. She paid $5,000, and that was with some help from us and from her grandmother (although she had the money to do it on her own if necessary). That's the market you need to be in.

**greenskeeper** · 05-20-2016, 12:30 PM

go ahead and buy the car

if you want to be financially strapped to a mode of transportation for the next 7 years!

Does this make sense?