Six Figure Income Required To Buy in the GTA Posted onAugust 22, 2017June 19, 2020/ Devry Smith Frank LLP If the past year of insanely high home prices hasn’t made you rethink home ownership, maybe this new report will. Two real estate companies conducted separate studies and have come up with the income requirements if you are looking to afford a home in Toronto. The results don’t seem to benefit Canada’s millennials. A majority of millennials out there, approximately 59% of those aged 25 to 30, would like to own a detached house in 5 years. Well, sorry to burst your bubble, but according to research by TheRedPin, the annual income needed to afford the average detached house in Toronto ($1.15 million) is a whopping $200,663 with monthly mortgage payments of $4,349 (based on 20 per cent down, 2.99% mortgage, amortized over 25 years). A condo does not give millennials much hope either, with the average price being $576,000, you’d need an income of $92,925 to carry payments of $1,933 a month, plus tax, utilities, and condo fees. While these numbers start to slowly change, people in their late 20s are going to continue to face affordability issues compared to their parents. While cities like Toronto provide the best opportunity for employment for young adults, they result in being the most expensive markets to own property. Going outside of the city to live and work may seem like the better option, but it is still relatively expensive: Buyers need more than $150,000 a year to cover the cost in half of 22 Toronto area municipalities Oshawa needs an annual income of $108,773 to afford an average home of $552,268 King Township needs $264,000 a year to afford $5,883 in mortgage payments with an average price of $1.6 million Many young adults looking to escape their family home, stop paying rent, and find a place to call their own, cannot afford to put a down payment on a condo or house. Nearly 25 per cent have looked to family for assistance on a down payment. Even though that number is quite low, it may continue to grow with the rate the market is going. It isn’t as easy to afford housing as it used to be. If you are in need of a real estate lawyer, please visit our website and contact one of our real estate lawyers today. If you are in need of any other services or have any questions, you may also contact our Toronto office directly at 416-449-1400. By: Nicolas Di Nardo “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” Related Posts Posted onOctober 4, 2017June 18, 2020/ Devry Smith Frank LLP Toronto Home Sales Continue to Tank This Fall Data shows that September continued to be a month of decline for the Toronto real estate market, with sales falling between 38 and 45 per cent compared to a year earlier. This marks the fifth month in a row of declining sales, which not too long ago had high home values and crazy sales numbers. [...] Read more Posted onSeptember 21, 2017June 18, 2020/ Devry Smith Frank LLP Top Intersections for Condos in Toronto Condos have been taking over the Toronto skyline, with more to come not only in the downtown core, but in popular hubs around the entire city. New builds provide a ton of options for prospective buyers because they seem to be popping up all over the city, but it seems that re-sale condos surrounding many [...] Read more Posted onSeptember 6, 2017June 18, 2020/ Devry Smith Frank LLP Toronto Housing Market Update: August 2017 Home sales slowed down through August so much that there was a 34.8 per cent drop in sales compared to last year. This marks the fourth month in a row where sales and home prices have dropped. July’s average price was sitting at $746,033 while August had an average price of $732,292. Since the introduction [...] Read more Posted onAugust 31, 2017June 18, 2020/ Devry Smith Frank LLP Mid-rise Housing, The Next Best Thing for Toronto Real Estate? With detached homes in Toronto reaching unattainable prices and an abundance of high rise condos taking over the city skyline, most of which are either purchased and sitting empty or demanding rent that is extremely high, could midrise development within some of Toronto’s neighbourhoods be the answer to the homeownership struggle many Torontonians are facing? [...] Read more