You guys are talking about buying a rental/income property but did not once mention that it would require 20% down payment. A lesser down payment only applies to a primary residence. Your qualification amount would not apply in the rental/income scenario.
The whole approach to housing as "investment" is why housing has gotten so expensive across Canada. It is great to be able to buy a home and sell it at some appreciated value down the road... but people are not buying to live in anymore because they are using housing for profit. And crucially, anyone making under 80K (most people in Canada) can barely even afford rent in any major city which is where most job opportunities are. If we continue to approach housing like an investment it will only get worse. Torontonians buying homes in smaller cities outprices locals. We need to remember homes are not just for profit. They are for living. I appreciate you being so transparent about your own finances and goals. Hope you see where I am coming from even if you do not agree.
It’s really unfortunate how high the prices are rising for young buyers, I’m still young but worried about buying a house later in the future. Great video it’s nice to see you being transparent about your process!
you don't have to say "anecdotally" its implied. and yes i can believe that considering a lot of people i know also had gifted money from family to purchase
Having just gone through the process, the most surprising was learning about the appraisal concept, especially in the current bidding war context. Just because your lender pre-approves you for X and you bid at that amount or lower and win, does not mean the lender will give you that much if they appraise the house at a lower value! Really important to keep in mind especially if you go in without conditions, as you are on the hook for the original down payment and the difference in value post appraisal.
Awesome content I love how transparent you both are! Many young people in Toronto face the same issue. I’m hopping things get better for us all because Toronto is a great city
Super helpful video! Something I’ve been thinking a lot about recently being in the GTA. Would love to see a video where you both talk about possible locations outside the GTA that might be worth exploring for residential/or living purposes :)
Congrats Steph & Den on hitting 40k subs , happy for you guys(I remember when u had just 2k subs ) .u guys are always giving very informative content , can't wait for you guys to hit 1M subs soon ,Let's GOO AS Den always say it
Hey Steph and Den, you guys need to make another video on AQN. I swear this is a top 3 buy now for Canadian stocks. Company stock price by late 2021 should be around $21.50 Canadian I am assuming. Then end of 2022 I don't see it under $24 Canadian. I sold about 15 grand worth of Tesla and put it in a AQN.
@@supercoolperson96 Isn't the mortgage approval typically 5x your salary? So that can limit a lot of potential condos especially if you only have 5% down
Guys I noticed that when you went over the monthly expenses tab, you probably nincludes your monthly rent amount in the expenses which contributed towards lower buying approval. Adjust the expenses tab to only show your day to day expenses ( do not include rent) and it will generate a new pre approval amount.
Can you make a video about professional mentorship in the future? Curious about how you two managed to communicate with mentors. I am a student and currently in a number of mentorship programs with professional firms. Thanks.
I just bought a condo in Calgary and am moving my film production company west. Toronto is a quick flight away and almost everything is digital/virtual these days.
Buy pre construction or buy it further from the city. I purchased a pre con condo in Mississauga in 2019 and bought a townhouse in Kitchener where I live right now. I’m in construction and I work in toronto about half the year, so commuting is hard, but that’s all I can do now
That's true, good point! We were trying to show at a high level the amount of money we'll have to spend - but the 20% will be factored in if we buy a place we won't be living in 😊
If you put down less than 20% then you have to pay for cmhc insurance, it quite pricey in the long term if you are going to live in it and there is options of refinancing for another place. As a millennial from born and raised in Toronto, a lot of people I know are purchasing condos or purchasing a house in Hamilton for their first home. The price down of living in a house vs condo vs townhouse should factor into your purchasing too!
A cool video to see would be about Credit Cards in Canada. Best ones to get (from your experience), how the point system works, importance of credit score and how it works, fees, etc. Great content so far!
Where I live atm, credit cards aren't important or necessary at all. So moving to Canada next year would be nice to understand how that works and the importance of them.
Why do you want to have an investment property and continue living in a rental unit? Buy a condo in Toronto, live in it and build equity. Max out your tfsa throw everything into XEQT, VOO or some other growth etf. You can even take more risk and put it into something like ARKK since you are young and don't need the money right away. You save yourself the trouble of being a landlord (shit breaks all the time and you have to deal with the hassle, especially for a house it's a lot) and you would most likely be cash flow negative anyways with your income since you also have to pay income taxes on your rental income and property taxes. You will also loose your first time home buyer rebate. If you are so keen on an investment property then it would make more sense to buy a 1br or studio and rent it out to a student or young professional once Toronto opens up again and rental prices go back up.
I used that calculator and it told me I'd be approved for more than I was. :,) I got $600k but it told me $750k or something. Actually getting pre approved was so different and a shock. But you never know. I'm self employed and that could have played a part.
you guys should look into buying through a homebuying program for low or middle income. in Toronto there are a few programs. its usually small apartments but at way below market price often with little to no interest
My parents still can’t get over how crazy the homes are getting. If they sold their homes, they would be homeless, because their homes are worth under 400k, and you can’t even buy a home in Ontario anymore for that price! We have four kids, and are saving up to buy a 800k-900k home here, outing down 20% in about 4-5 years. We are also building, and here in Windsor, the average home price is around 650k. We’re just holding onto this dream that we can buy our dream home for our kids, while still investing a couple thousand toward investments, to retire when our youngest is 18!
We talk about that all of the time - how people can't even sell their homes and move somewhere else in the neighbourhood because of the prices! You'd have to move further away, let alone downsize. That's a great goal though - good luck with the build!! 😊
hi just moved to Toronto and want to buy a condo there, does one still, needs a mortgage if they have all the money to buy the property n cash? and do migrants allowed to buy a property before making a year into Canada?
The problem with the housing market is that the housing prices are rising at a rate higher than anyone can save for. It sucks as someone who is also looking to buy a home within the GTA. By the time I save $80,000 for a down payment the house prices will have increased to a point where that's no longer feasible.
No judgement here just wondering - buying a property together and you aren't married yet: how does that work from a legal standpoint if the relationship ends? Is the process the same as a couple that divorces in terms of selling the property and splitting the proceeds?
Good question! We looked into it after you asked to see if there was anything specifically different buying as two non-married vs married people - we found there's something called a 'co-habitation agreement'. We basically view it the same as anyone going in on an investment together (particularly if we're not living there) - we'd ensure we had the right documentation / written agreement in advance stipulating what happens (who would pay for what, etc.) if someone wants to leave the investment or the relationship. Sounds very official, but we know it's important to take anything involving money seriously and plan for every scenario. 😊
Hi, I wanted to request if you guys could talk more about your careers or what to do before getting out in the real world such as: classes to be mindful of in uni, specific extracurriculars, your degree and job or the options available to you. Thank you, and love your videos they’re very informative and helpful.
Hey Afia! Definitely - we did that a bit in our 'How To Get A Job After University' videos (we did one each!) from last year - hopefully that's a good starting point 😊 Thanks so much for watching!
I use to do the Dave Ramsey thing like you. Just graduated from Uni and last August I stopped and instead bought a semi - 25 mins east of Toronto. Now the value of the house has gone up 150k in 7 months- NO JOKE. Just get in the market ASAP. You can make it work guys- especially by renting out a basement etc..
I believe that for non owner occupied investment properties you have to put down a 20% downpayment :( You might want to check on that as that could affect your plans!
Great point! We were trying to show at a high level the amount of money we'll have to spend - but the 20% will definitely be factored in if we buy a place we won't be living in 😊
Thank you for the video and your transparency. Getting into the housing market is key, does not matter the size of the property just getting your foot in the door suburbs is your best bet.
I feel you! Ottawa is going crazy as well and My goal of 2021 had to move a bit. Better to wait and not take unnecessary debt as you mentioned. Awesome video :)
This is so relatable and stressful🥵 I can’t leave Toronto or the GTA because my job requires me to live within a certain distance. Making it so challenging to for me and my partner to buy anything. Right now, we’re living at home saving as much as possible to make it happen!😔🙏
Hey Ivan! It's definitely a good option, but in our case we aren't planning on it - we talked about it a bit towards the end of our last RRSP video if you're curious 😊
It’s nice to see a couple in the GTA saving and building their wealth instead of complaining about how everything is so expensive Yes Toronto is expensive but if you live below your means and are diligent in saving you can afford some type of home in the GTA whether it be a condo or small start up home outside the city
Owning a home has always been a priority growing up with income scarcity. As a recent graduate in Ontario (born and raised in London ironically), watching the price of a home skyrocket to the point of being unattainable is so discouraging. My parter and I make combined 100k or more per year and we'll never be able to buy in London as it is. I don't want to say that other people have ruined it because that's not fair; everyone is just trying to do what we aren't able which is getting in the the market while they can. But as a result I worry this will ripple and cause basically all of canadian housing to become inherently unaffordable regardless of income. It's not about making more money, at some point homes should just be valued at what they are actually worth. It pains me to see people from other (mostly metropolitan areas) come out of the city and into the burbs and think the grass is greener here...meanwhile they're paying over 600k for a dump worth maybe 150k on one of the worst streets in town and they have no idea. Then they end up leaving two years later when it's no longer viable for them. Eventually we all lose out, you as an investor overpaid for an asset you can't move at the same rate you purchased for and meanwhile the rest of us priced out permanently. I know this doesn't apply to everywhere, but I've seen it happen with my home town and everywhere around it at an accelerated rate. Everyone deserves a home but the system is broken and who knows what will happen.
Very good points on the broken system - it's a constant cycle. It'll be interesting to see if another correction occurs - but the odds of the homes truly being valued at what they're actually worth is still unlikely even then. It is tough! Thanks so much for watching our video and sharing your thoughts 😊
@@stephandden I completely agree :) Thank you guys for making some valuable, Canadian focused finance content. It’s nice to see other people my age creating well structured and informative video as about living their life and having attainable goals!
It’s sort of sad. Even with a combined income of 200k you can’t even get a 1M house. Many mid 20 year olds are making six figures but can’t afford to move out of their parents home.
So interesting to see the GTA market. I was able to buy a condo in the Vancouver area on single income as a millennial (similar salary) in the last year. If you look outside the GTA the possibilities are endless. But that being said..as a new homeowner myself, I dont see anything wrong with Renting at all and sometimes I think renting is better. You dont deal with any maintenance / strata / repair costs. If you have a great deal on Rent, I would suggest staying there and just saving the extra funds into investments. Quick feedback, when you do the hand covering camera transition, you should add a "swoooooosh" type noise so its less awkard. It just feels like your hand is covering my face. lol. also, found your channel through Graham's reaction video. Glad to see your channel growing!!!
Have you guys ever considered "house hacking" and buying a legal duplex or something that could be converted to a legal duplex? You can get pre-qualified a little higher if it's already a legal duplex because you can include half of expected rent in your income. I just bought my first house in Hamilton and this is my plan! The only way any young people are going to be able to afford houses is buying with a partner and/or having parents who can co-sign
I agree! This is what I did as well. In the states, they counted 75% of the rental amount towards my income which bumped my purchase price up because I qualified for more.
The only reason I dislike living in Canada is the fact that the prices are ridiculous. Cities that are cheap have no jobs and cities that are expensive have plenty. The only exception is Montreal but f*** Quebec French. Just kidding I'm just to lazy to learn it.
Another awesome video guys 👏 & congrats on reaching 40k! Just wondering- have you guys considered getting a Condo property (cheaper) & renting to university students in Toronto (near Ryerson & St.George Campus) (& obviously once the pandemic is over, and classes resume!) I never done much research on real estate, but just remember paying a good amount of rent money during my 3 years while I was in uni :)
@@stephandden all the best guys , the thing with Ontario , specifically Toronto is that we have a lot jobs here and good market , in other cities is to totally different, I tried the opposite one time for 6 months at Montreal , and I didn’t like at all , and to find good jobs is not like TO
I believe do investments in something else , to make that money to pay a house up front , with 200k if you plan yourself properly , you can make a business and make good profit for life .
You mentioned you are looking to buy for investment purposes rather than to live there. But is it not true that you MUST live in the property you purchase for at least the first year before you make it into an income source? Great video! :)
We haven't seen anything about living in the home for a year first; however, the key is your mortgage agreement - you have to stipulate what the purpose of the loan is to the lender, and if you want to change the use from primary to investment, your loan agreement might not hold up. We'll talk about this more in future vids, too 😊
@@calencei yea man i know. My best friend just closed on a condo and 2 of my family members are house searching right now. Maybe its just all those added charges thats making me wimpy, lol.
Don't do it, it's a very forlorn place, unless you have some very compelling reasons, it's just not great overall, the states have violence, especially gun violence which is very off-putting and should make anyone want to not live there, but if you live in a relatively less unsafe place, I'd stay put.
Thanks for the video! I hope you find a good investment property. It's a lot of work to maintain, nonetheless as you said, if it can be cash positive it becomes a "good debt"
wow toronto is really expensive. you have such a high income. you could always buy real estate in windsor. its cheaper there than toronto. thats for sure
Toronto citizens “investing” is driving everyone in Niagara out of the housing market. Currently living it. Hopefully once COVID is gone, everyone working in Toronto will be driven back to living in Toronto. GTA is so happy and Niagara is suffering.
That's a great point - many cities outside of the GTA have rapidly increasing prices as well. It'll be interesting to see if there is a change back post pandemic!
There's probably a ton of house poor people in this country. Working just to pay off a mortgage and not have enough for anything else doesn't seem worth it imo
It's true - being house poor just so you can buy instead of rent is not ideal. That's why we're not tied to Toronto even though we love living here - if you can't afford it (or you can 'just' afford it), it's not worth it!
You can buy a one bed room cubby hole apartment for $600,000 in Toronto. thanks Mr. Justin Trudeau for your amazing contribution. Rich people are buying house from outside of Canada. “Only Citizens can buy house and one can not buy and sale more than their house holds during one’s lifetime can safe us all”
Also since you're thinking of an investment, maybe you can split the house with another couple, thus increasing your purchasing power...you won't make as much from the rent but at least it gives you a quicker way to get in
Enjoyed this video, but I think it makes more sense to split your videos into informational videos and your personal experience / thoughts videos, rather than combining the two
Thanks, Angelo! We try to always through some of our personal experiences into our informational videos - but there will be other more personal vids to come as well 😊
Man Toronto is too expensive I'm Canadian in stoney creek its bit cheaper but it's still pricey places like kitchner and Windsor is better even barrie and I seen oshawa Durham region is better Ontario is just too expensive rent isn't dropping that much ots crazy it's better to move to another province I've spoken to people in the other provinces and cost of living is so much lower
Were you surprised by how much our pre-qualification was?! Tell us your thoughts! ✨
You guys are talking about buying a rental/income property but did not once mention that it would require 20% down payment. A lesser down payment only applies to a primary residence. Your qualification amount would not apply in the rental/income scenario.
@@anthonyc7214 oh wow, those are canada’s rules?
@@anthonyc7214 Right, and using the anticipated 65k downpayment in June of 2022 is 20% of a purchase price of 325k.
@@WeLoveChouBJu Exactly, which means S&D are investing in Nova Scotia ;)
@@therichbuddha3277 Nothing wrong with east coast!!
The whole approach to housing as "investment" is why housing has gotten so expensive across Canada. It is great to be able to buy a home and sell it at some appreciated value down the road... but people are not buying to live in anymore because they are using housing for profit. And crucially, anyone making under 80K (most people in Canada) can barely even afford rent in any major city which is where most job opportunities are. If we continue to approach housing like an investment it will only get worse. Torontonians buying homes in smaller cities outprices locals.
We need to remember homes are not just for profit. They are for living. I appreciate you being so transparent about your own finances and goals. Hope you see where I am coming from even if you do not agree.
Edmonton Avg price is under 500k,
It’s really unfortunate how high the prices are rising for young buyers, I’m still young but worried about buying a house later in the future. Great video it’s nice to see you being transparent about your process!
Thanks so much for watching! 😊
A friend who works in RE anecdotially told me ~90% of offers on first-time homes in Toronto proper have mom and dad money helping out.
If I lived in that area I would sell and move out west. Easier said then done tho.
you don't have to say "anecdotally" its implied. and yes i can believe that considering a lot of people i know also had gifted money from family to purchase
Having just gone through the process, the most surprising was learning about the appraisal concept, especially in the current bidding war context. Just because your lender pre-approves you for X and you bid at that amount or lower and win, does not mean the lender will give you that much if they appraise the house at a lower value! Really important to keep in mind especially if you go in without conditions, as you are on the hook for the original down payment and the difference in value post appraisal.
Great point - that's good to know and important to keep in mind!!
Awesome content I love how transparent you both are! Many young people in Toronto face the same issue. I’m hopping things get better for us all because Toronto is a great city
Thank you! 😊✨
Super helpful video! Something I’ve been thinking a lot about recently being in the GTA. Would love to see a video where you both talk about possible locations outside the GTA that might be worth exploring for residential/or living purposes :)
Thanks, Tania! That's a great idea - we'll definitely keep that in mind! & useful research for us, too 😊
what i love about your channel is the videos are very relatable
Thanks, Samuel!
Congrats Steph & Den on hitting 40k subs , happy for you guys(I remember when u had just 2k subs ) .u guys are always giving very informative content , can't wait for you guys to hit 1M subs soon ,Let's GOO AS Den always say it
Wow, thanks for watching for so long!! & ha love it!!! Let's goooo 🙌🏾
I remember when u guys had like 6k subs! wow im so happy for you guys!!
Thank you so much!!! 😊😊
I hope watching the ads in full helps even if just a little bit!
Thanks so much, Rebecca! We appreciate it 😊
Hey Steph and Den, you guys need to make another video on AQN. I swear this is a top 3 buy now for Canadian stocks. Company stock price by late 2021 should be around $21.50 Canadian I am assuming. Then end of 2022 I don't see it under $24 Canadian. I sold about 15 grand worth of Tesla and put it in a AQN.
It's even more insane to buy or rent if you are a single person 😔
Very true - the combined income literally doubles the impact. It’s expensive out there!
I believe having a partner does make a huge difference between what is affordable as like you said the impact is basically doubled.
i bought a condo as a single person in the vancouver area and my salary is less than steph/dan. just put minimum 5% down!
@@supercoolperson96 Isn't the mortgage approval typically 5x your salary? So that can limit a lot of potential condos especially if you only have 5% down
I wanted to know more info about this. What if I want to buy a condo as a single person? Is this even possible?
Guys I noticed that when you went over the monthly expenses tab, you probably nincludes your monthly rent amount in the expenses which contributed towards lower buying approval. Adjust the expenses tab to only show your day to day expenses ( do not include rent) and it will generate a new pre approval amount.
Interesting! We'll look into that for sure 😊
Can you make a video about professional mentorship in the future? Curious about how you two managed to communicate with mentors. I am a student and currently in a number of mentorship programs with professional firms. Thanks.
Great suggestions! We sure can - and we have a few videos on networking we've done in the past, too 😊
My girlfriend and I are in the exact same situation... So sad
There's so many people feeling this way, we're sure!!
I just bought a condo in Calgary and am moving my film production company west. Toronto is a quick flight away and almost everything is digital/virtual these days.
That's a great set up!
Buy pre construction or buy it further from the city. I purchased a pre con condo in Mississauga in 2019 and bought a townhouse in Kitchener where I live right now. I’m in construction and I work in toronto about half the year, so commuting is hard, but that’s all I can do now
Thanks for the suggestion 😊
You will require minimum 20% down for an investment property, not sure if you guys are aware. Can only do less for a primary residence.
That's true, good point! We were trying to show at a high level the amount of money we'll have to spend - but the 20% will be factored in if we buy a place we won't be living in 😊
Loved this! Even here in Montreal where buying is much more affordable the prices have been going up like crazy during the pandemic!
That's good to know - I wonder how Montreal will be impacted post-pandemic!
If you put down less than 20% then you have to pay for cmhc insurance, it quite pricey in the long term if you are going to live in it and there is options of refinancing for another place. As a millennial from born and raised in Toronto, a lot of people I know are purchasing condos or purchasing a house in Hamilton for their first home. The price down of living in a house vs condo vs townhouse should factor into your purchasing too!
Great points! We'll definitely talk about the price of detached homes vs condos vs townhouses, etc. in the future, too 😊
The same thing happened here in NYC, we moved to a cheaper apartment but don’t qualify for a home because they sky rocketed. Love watching you guys 🙏🏿
Hey Daniel! Thanks so much for watching 😊✨
make a video on pre constructions if u guys have any idea on how those work
In the future we will! 😊
"Own What You Can Rent; Rent Where You Want To Live!"
👀👀👀
A cool video to see would be about Credit Cards in Canada.
Best ones to get (from your experience), how the point system works, importance of credit score and how it works, fees, etc.
Great content so far!
Where I live atm, credit cards aren't important or necessary at all. So moving to Canada next year would be nice to understand how that works and the importance of them.
We'll definitely do a video on this soon! 😊
This video was great guys! So informative and I always appreciate your transparency. Fellow Toronto young person !
Thanks so much, Malika! 😊
How long have you been waiting for prices to come down ?
We haven't been waiting!
Why do you want to have an investment property and continue living in a rental unit? Buy a condo in Toronto, live in it and build equity. Max out your tfsa throw everything into XEQT, VOO or some other growth etf. You can even take more risk and put it into something like ARKK since you are young and don't need the money right away. You save yourself the trouble of being a landlord (shit breaks all the time and you have to deal with the hassle, especially for a house it's a lot) and you would most likely be cash flow negative anyways with your income since you also have to pay income taxes on your rental income and property taxes. You will also loose your first time home buyer rebate. If you are so keen on an investment property then it would make more sense to buy a 1br or studio and rent it out to a student or young professional once Toronto opens up again and rental prices go back up.
Thanks for sharing what you would do! 😊
I used that calculator and it told me I'd be approved for more than I was. :,) I got $600k but it told me $750k or something. Actually getting pre approved was so different and a shock. But you never know. I'm self employed and that could have played a part.
That's great insight! We definitely plan to get a true pre-approval before starting a real search 😊
@@stephandden good luck!! In the end it'll work out and it'll make the roller coaster that it is worth it 😊
Great info house price really crazy I live in Vaughan there is nothing under a million maybe condo's. But my goal is to pay off my debts.
you guys should look into buying through a homebuying program for low or middle income. in Toronto there are a few programs. its usually small apartments but at way below market price often with little to no interest
My parents still can’t get over how crazy the homes are getting. If they sold their homes, they would be homeless, because their homes are worth under 400k, and you can’t even buy a home in Ontario anymore for that price! We have four kids, and are saving up to buy a 800k-900k home here, outing down 20% in about 4-5 years. We are also building, and here in Windsor, the average home price is around 650k.
We’re just holding onto this dream that we can buy our dream home for our kids, while still investing a couple thousand toward investments, to retire when our youngest is 18!
We talk about that all of the time - how people can't even sell their homes and move somewhere else in the neighbourhood because of the prices! You'd have to move further away, let alone downsize. That's a great goal though - good luck with the build!! 😊
hi just moved to Toronto and want to buy a condo there, does one still, needs a mortgage if they have all the money to buy the property n cash? and do migrants allowed to buy a property before making a year into Canada?
The problem with the housing market is that the housing prices are rising at a rate higher than anyone can save for. It sucks as someone who is also looking to buy a home within the GTA. By the time I save $80,000 for a down payment the house prices will have increased to a point where that's no longer feasible.
Very true, it feels hard to keep up with rising rates - even moving further and further out of the GTA itself
yup we cant outsave appreciation. we just gotta move further away from toronto tbh
Don't worry Den. Stay focused, visualize and one day you will own one of those beautiful homes in TO . Hey please come to Brampton.😀🙏🏽
Thanks so much 😊✨
No judgement here just wondering - buying a property together and you aren't married yet: how does that work from a legal standpoint if the relationship ends? Is the process the same as a couple that divorces in terms of selling the property and splitting the proceeds?
Good question! We looked into it after you asked to see if there was anything specifically different buying as two non-married vs married people - we found there's something called a 'co-habitation agreement'. We basically view it the same as anyone going in on an investment together (particularly if we're not living there) - we'd ensure we had the right documentation / written agreement in advance stipulating what happens (who would pay for what, etc.) if someone wants to leave the investment or the relationship. Sounds very official, but we know it's important to take anything involving money seriously and plan for every scenario. 😊
@@stephandden that's good to know, thanks for the answer. All the best to you and keep up the good work!
@@stephandden yall too real for answering this lmfaooo
Hi, I wanted to request if you guys could talk more about your careers or what to do before getting out in the real world such as: classes to be mindful of in uni, specific extracurriculars, your degree and job or the options available to you.
Thank you, and love your videos they’re very informative and helpful.
Hey Afia! Definitely - we did that a bit in our 'How To Get A Job After University' videos (we did one each!) from last year - hopefully that's a good starting point 😊 Thanks so much for watching!
I use to do the Dave Ramsey thing like you. Just graduated from Uni and last August I stopped and instead bought a semi - 25 mins east of Toronto. Now the value of the house has gone up 150k in 7 months- NO JOKE. Just get in the market ASAP. You can make it work guys- especially by renting out a basement etc..
Wow great advice!
Congrats on your great investments!!!
Thanks for sharing & watching! 😊
I believe that for non owner occupied investment properties you have to put down a 20% downpayment :( You might want to check on that as that could affect your plans!
Great point! We were trying to show at a high level the amount of money we'll have to spend - but the 20% will definitely be factored in if we buy a place we won't be living in 😊
Thank you for the video and your transparency. Getting into the housing market is key, does not matter the size of the property just getting your foot in the door suburbs is your best bet.
Thanks for watching! ✨
Great pre- qual, but not for GTA. Are you guys considering fixer homes as investment property?
Ha, agreed! We definitely would consider it - we'll decide more concretely when we start to explore specific options!
I feel you! Ottawa is going crazy as well and My goal of 2021 had to move a bit. Better to wait and not take unnecessary debt as you mentioned.
Awesome video :)
That’s a great way to look at it 👏🏾👏🏻 Thank you!!
This is so relatable and stressful🥵 I can’t leave Toronto or the GTA because my job requires me to live within a certain distance. Making it so challenging to for me and my partner to buy anything. Right now, we’re living at home saving as much as possible to make it happen!😔🙏
Good point - sometimes we're restricted by work! Good luck with the saving process - you've got this! 😊
Are you guys going to use the First time home buyers plan from you rrsp to help with the down payment?
Hey Ivan! It's definitely a good option, but in our case we aren't planning on it - we talked about it a bit towards the end of our last RRSP video if you're curious 😊
What do you both do for a living?
We have a few videos about our careers on the channel! 😊
Super informative breakdown keep up the great videos!
Thanks, Lee! 😊
Have u guys ever visited Montreal
We have 😊
@@stephandden do u like montreal better than Toronto?
Very helpful video! Thanks for sharing!!
Thanks Marco! 😊
It’s nice to see a couple in the GTA saving and building their wealth instead of complaining about how everything is so expensive
Yes Toronto is expensive but if you live below your means and are diligent in saving you can afford some type of home in the GTA whether it be a condo or small start up home outside the city
Thanks for watching 😊
This was very insightful! Thank you🙌🏾
Thanks so much for watching! ✨
Thank you so much as always for sharing the tips and your thoughts Steph & Den! Hopefully we all get to the point that we can own a property soon 🤞🏻
Of course, thanks for watching! 😊
Even though I grew up in Toronto I wouldn’t even bother trying to buy a house if making less than like 500k after taxes
I think not many make that much, most are willing to take on more debt.
Love this video guys! Definitely daunting looking at a first property given the housing market rn
Thanks Paul! 😊
It's better to buy now before prices skyrocket
Owning a home has always been a priority growing up with income scarcity. As a recent graduate in Ontario (born and raised in London ironically), watching the price of a home skyrocket to the point of being unattainable is so discouraging. My parter and I make combined 100k or more per year and we'll never be able to buy in London as it is. I don't want to say that other people have ruined it because that's not fair; everyone is just trying to do what we aren't able which is getting in the the market while they can. But as a result I worry this will ripple and cause basically all of canadian housing to become inherently unaffordable regardless of income. It's not about making more money, at some point homes should just be valued at what they are actually worth. It pains me to see people from other (mostly metropolitan areas) come out of the city and into the burbs and think the grass is greener here...meanwhile they're paying over 600k for a dump worth maybe 150k on one of the worst streets in town and they have no idea. Then they end up leaving two years later when it's no longer viable for them. Eventually we all lose out, you as an investor overpaid for an asset you can't move at the same rate you purchased for and meanwhile the rest of us priced out permanently. I know this doesn't apply to everywhere, but I've seen it happen with my home town and everywhere around it at an accelerated rate. Everyone deserves a home but the system is broken and who knows what will happen.
Very good points on the broken system - it's a constant cycle. It'll be interesting to see if another correction occurs - but the odds of the homes truly being valued at what they're actually worth is still unlikely even then. It is tough! Thanks so much for watching our video and sharing your thoughts 😊
@@stephandden I completely agree :) Thank you guys for making some valuable, Canadian focused finance content. It’s nice to see other people my age creating well structured and informative video as about living their life and having attainable goals!
Love the Video Both of You! Hope you Both have a Fantastic weekend full of Love and Light! 🙏💕😊
Thanks so much, Andray!! 😊 Happy Saturday ✨
It’s sort of sad. Even with a combined income of 200k you can’t even get a 1M house. Many mid 20 year olds are making six figures but can’t afford to move out of their parents home.
It's a tough market!
So interesting to see the GTA market. I was able to buy a condo in the Vancouver area on single income as a millennial (similar salary) in the last year. If you look outside the GTA the possibilities are endless. But that being said..as a new homeowner myself, I dont see anything wrong with Renting at all and sometimes I think renting is better. You dont deal with any maintenance / strata / repair costs. If you have a great deal on Rent, I would suggest staying there and just saving the extra funds into investments.
Quick feedback, when you do the hand covering camera transition, you should add a "swoooooosh" type noise so its less awkard. It just feels like your hand is covering my face. lol.
also, found your channel through Graham's reaction video. Glad to see your channel growing!!!
Thanks for watching and checking out our channel! 😊
Have you guys ever considered "house hacking" and buying a legal duplex or something that could be converted to a legal duplex? You can get pre-qualified a little higher if it's already a legal duplex because you can include half of expected rent in your income. I just bought my first house in Hamilton and this is my plan! The only way any young people are going to be able to afford houses is buying with a partner and/or having parents who can co-sign
I agree! This is what I did as well. In the states, they counted 75% of the rental amount towards my income which bumped my purchase price up because I qualified for more.
Hey Laura! Good question - definitely have considered it - and is still an option, if we found the right property in the future! 😊
Great and helpful video but could use some more background music
Thanks for watching 😊
The only reason I dislike living in Canada is the fact that the prices are ridiculous. Cities that are cheap have no jobs and cities that are expensive have plenty. The only exception is Montreal but f*** Quebec French. Just kidding I'm just to lazy to learn it.
Another awesome video guys 👏 & congrats on reaching 40k! Just wondering- have you guys considered getting a Condo property (cheaper) & renting to university students in Toronto (near Ryerson & St.George Campus) (& obviously once the pandemic is over, and classes resume!) I never done much research on real estate, but just remember paying a good amount of rent money during my 3 years while I was in uni :)
Thanks so much, KAren! 😊
The thing of you buy in other cities than Toronto or big ones ; you will regret it , because the job market is totally different
We wouldn't be living in other cities nor is the job market a concern for us personally 😊
@@stephandden all the best guys , the thing with Ontario , specifically Toronto is that we have a lot jobs here and good market , in other cities is to totally different, I tried the opposite one time for 6 months at Montreal , and I didn’t like at all , and to find good jobs is not like TO
if you are buying an investment property you will have to put 20% down
And have good credit
*Cries in Torontonian*
😂
I believe do investments in something else , to make that money to pay a house up front , with 200k if you plan yourself properly , you can make a business and make good profit for life .
There's a lot of different investment options, yes - you don't have to choose real estate 😊
You mentioned you are looking to buy for investment purposes rather than to live there. But is it not true that you MUST live in the property you purchase for at least the first year before you make it into an income source? Great video! :)
We haven't seen anything about living in the home for a year first; however, the key is your mortgage agreement - you have to stipulate what the purpose of the loan is to the lender, and if you want to change the use from primary to investment, your loan agreement might not hold up. We'll talk about this more in future vids, too 😊
Omg house buying is dizzying! Think im going stick to apts for at least the next 10 years. By then i'll be 33 and more financial stable.
That’s a good way to put it! 😂
prices will only get higher the longer u wait. u cant outsave appreciation in this market
@@calencei yea man i know. My best friend just closed on a condo and 2 of my family members are house searching right now. Maybe its just all those added charges thats making me wimpy, lol.
Trying to talk my wife into moving to Canada .. we currently live in the states
Fun! Where in the states are you / where in Canada would you move? 😊
@@stephandden Burlington looks nice.. but sadly I guess I will have to just visit with her so she can see for herself.. we live in North Carolina
Don't do it, it's a very forlorn place, unless you have some very compelling reasons, it's just not great overall, the states have violence, especially gun violence which is very off-putting and should make anyone want to not live there, but if you live in a relatively less unsafe place, I'd stay put.
Thanks for the video! I hope you find a good investment property. It's a lot of work to maintain, nonetheless as you said, if it can be cash positive it becomes a "good debt"
Thanks for watching! 🙌🏾🙌🏻
GREAT VIDEO!!
Thanks so much! 🙌🏾🙌🏻
wow toronto is really expensive. you have such a high income. you could always buy real estate in windsor. its cheaper there than toronto. thats for sure
It sure is!!
Toronto citizens “investing” is driving everyone in Niagara out of the housing market. Currently living it.
Hopefully once COVID is gone, everyone working in Toronto will be driven back to living in Toronto.
GTA is so happy and Niagara is suffering.
That's a great point - many cities outside of the GTA have rapidly increasing prices as well. It'll be interesting to see if there is a change back post pandemic!
whats happening in niagra?
if you're buying a home in Toronto proper - you'll have double land transfer tax
Is that what you've experienced? 😊
@@stephandden It's true. You pay one for Ontario and you pay another one for Toronto. Hence, double land transfer tax
come to barrie. I'll get you a sweet place ;)
fire sweater Dan
Thank you!
If you buy a place in London/Strathroy I will gladly rent from you! Maybe one with treelined driveway and backyard creek? We'll talk haha
Haha, we love it! We'll let you know 😜
There's probably a ton of house poor people in this country. Working just to pay off a mortgage and not have enough for anything else doesn't seem worth it imo
It's true - being house poor just so you can buy instead of rent is not ideal. That's why we're not tied to Toronto even though we love living here - if you can't afford it (or you can 'just' afford it), it's not worth it!
You can buy a one bed room cubby hole apartment for $600,000 in Toronto. thanks Mr. Justin Trudeau for your amazing contribution. Rich people are buying house from outside of Canada. “Only Citizens can buy house and one can not buy and sale more than their house holds during one’s lifetime can safe us all”
Also since you're thinking of an investment, maybe you can split the house with another couple, thus increasing your purchasing power...you won't make as much from the rent but at least it gives you a quicker way to get in
Enjoyed this video, but I think it makes more sense to split your videos into informational videos and your personal experience / thoughts videos, rather than combining the two
Thanks, Angelo! We try to always through some of our personal experiences into our informational videos - but there will be other more personal vids to come as well 😊
Can I buy you guys a couch please!?!?
We bought one three months ago that keeps getting the delivery delayed! But feel free to pay us for it 😉 ha
🧑🏽💻🛋🤦🏽♂️
Man Toronto is too expensive I'm Canadian in stoney creek its bit cheaper but it's still pricey places like kitchner and Windsor is better even barrie and I seen oshawa Durham region is better Ontario is just too expensive rent isn't dropping that much ots crazy it's better to move to another province I've spoken to people in the other provinces and cost of living is so much lower
It's definitely expensive!!
Karibu Kenya
Asante Clif 🙌🏿🙌🏿
Move to Alberta Canada
We like the GTA 😊
the girl is SUPER hot. only reason I watch the videos.
This was insightful! Thank you!
So glad you enjoyed! 😊
Awesome video once more!!!
Thank you! 😊