If you’re currently in the market for a place to live in Toronto then you already know that this city is really damn expensive!!! You probably already knew that even if you aren’t looking for somewhere to live actually. Everyone knows it, and we all hate it.
If you’re looking for a condo in the city now though, you’re going to need a lot of cash in your pocket now it seems. Apparently the price of condos in Toronto have somehow managed to go up, AGAIN.
You’ll now need a lot more income at your disposal than you would have at this time last year. How much money will you need to be making now?
Oh you know, just a $100,000 a year income.
Yeah, it appears that if your total household income is less that $100,000 a year then there is almost no hope you’ll be able to afford a condo in the city.
That’s because the average resale price of a condo in the downtown area these days is around $558,000.
That means you need $100,000 income in order to qualify for the loans and/ or mortgage to pay off the debt you’ll be in after you buy one.
A year ago you would have only needed $77,000 of total income to afford a condo when the average price was $510,000.
So not only is Toronto expensive, it’s becoming even more expensive fast. Which is bad news for just about everyone who’s starting to enter the market in search of somewhere to live right now.
Source: Financial Post