Torontonians making more than $236K need to save for about 25 years to buy a house in the city: report

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Comments

  1. returnofquzik says

    There will be a significant brain drain of people with transferable skills as a result of the housing crisis. Why pay rent when you can purchase a home elsewhere for the same (or less) money?

  2. 4a4a says

    That’s a weird way of framing the issue. Nobody sits down and says, “okay, I will start saving now and then buy a house in 25 years.” It would make more sense to talk about what the average Torontonian *can* afford, or maybe how far away they’d have to look for an affordable house.

  3. scootydonny says

    How does that relate to cities of comparable size? In my mind a house in NYC doesn’t exist, for example

  4. lionhart280 says

    > at a savings rate of 10 per cent of its pre-tax income

    So 23.6k per year…

    > A down payment for a non-condo (detached or semi-detached house) in Toronto is 20 per cent

    Wow yeah thats likely the majority of the problem…

    > to afford the “representative home” in Toronto, which sits on the market at $1,163,670

    So you would need $232,734 for the down payment…

    At 23.6k a year being set aside though, thats about 10 years to save that up, not 25.

    Not sure where they are getting their numbers from but as far as I can see, 25 years would be enough to save up 50% of the cost of the house.

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