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