hh619

Hi,

I know this is a tricky/sensitive one to answer, but i'd like to hear from people on what % of their salary they pay on rent/mortgage? I've done some research and it appears the the recommended amount is 30%.

I'm starting to research the cost of living now that we are applying for EE. I'm looking for jobs around Toronto and Ottawa. The Salary for jobs in my area of expertise are around $70-$120k.

My workings out for a Salary of $70,00

Gross = $70,000
After tax = $55,294.37
Monthly After tax = $4,607
30% of $4,607 = $1,382

As per the above, We would struggle to find something in the region of $1,382 within commutable distance of either Ottawa or Toronto.

I've found decent properties from around $1,700 - $2,200 pcm. Based on 1 person working, with a wife and future child. Would we be stretching ourselves?

I'm hoping to get a full break down of expected outgoings, but for now just a general idea of what % people are spending of their household income on rent/mortgage will help us out massively.

Thanks.

magnumpi

Wow, I had a look near me and in Scarborough where we used to rent for 1100$mth, awhile ago, and nothing under1700$ !! Most houses now are 2,000 and up per month the only other option is a basement apartment but even they are 1500 and up

Good luck with the search.

TBH it doesn't matter what anyone else is earning, it's what u can afford that matters most.

Bowmanville is east of Oshawa, a 15 min drive to Oshawa GO 1500 month

House for Rent Bowmanville on Kijiji https://www.kijiji.ca/v-house-rental...utm_source=sms

christmasoompa

If you're earning $70k, then is $55k after tax definitely realistic? It just sounds quite high to me. You mention after tax but have you also included other deductions like EI, CPP etc?

hh619

I used this: Canada 2017 Tax Calculator (Federal and Province Tax Calculator) to calculate tax. What percentage is EI and CPP?

Thanks.

hh619

magnumpi - Thanks for the link. I just want a general idea of what people pay. I think 40-50% would be doable. I just don't want to over stretch. The plan is to rent for 1 year then buy.

raindropsandroses

Usually it seems to be the cost of groceries that people underestimate.

Are either you or your partner good at DIY? Friends of ours in Ontario renovate other people's homes and then "stage" them to help them sell quickly, and they live in them for very reduced rent as part of the deal.
They started by looking for houses which had been up for sale for a long time, and then contacted the seller's realtor to see if the seller would be open to that kind of arrangement.

Could you consider something like that?

raindropsandroses

If you are going with 50% that leaves you with circa $2300 after paying rent. From that you'll need to pay...

Utilities
Groceries
Commuting costs
Anything else I've forgotten

I don't live in Ontario but I would think 40-50% on rent is going to be stressful and pushing it.

magnumpi

Car insurance, contents insurance, BBQ gas and endless beer n wine (summer only)

evets

As christmasoompa mentioned, have you considered EI, CPP, RRSP etc, the tax calculators do not really give an idealistic picture. I used them prior to my move and my tax home salary is less than I calculated based on the deductions, mentioned, which are not shown in the online tax calculator.

A 70k salary will not go that far in Toronto with a partner and future child, especially if you are looking to buy a property in the future. Hopefully you have a (really) good deposit you are bringing from the UK.

Are you looking to live in Toronto or the GTA area? If Toronto, you could survive without a car and thus save on the expensive car insurance, which will make your cry when you get a quote! If living in the GTA, car is king, public transport sucks but is doable if you are prepared for long commute times.

I live in west Mississauga and pay around $1500 for a 2 bedroom apartment with underground parking, excluding hydro and shared laundry. To get to downtown Toronto by public transport takes around 1.5 hours+. Fortunately I do not work in Toronto but Mississauga so my commute is not that painful.

Have a look at https://www.padmapper.com/ to get an idea about rentals. When I was looking January this year, not that much on the market mainly around Square 1, condos only and not that big, thus why I am so far out. I got more space for the money, downside I am much further out than I would have liked.

For the rent you mention, you can find something in north west Toronto, I believe from memory the last time I looked, a small 1 bed condo.

Ottawa you will get more for you money but depending on what you do for work, you may find the job market not as great.

Good luck with you move.

hh619

Hi raindropsandroses - I wish i was!! I can hang a picture if that counts?

raindropsandroses

Sadly I meant more able to tame wild yards, put down flooring, do tiling - that sort of thing. Is your partner good at DIY? I do the vast majority of the DIY in our house as I'm at home with our toddler, so more time to do it and a very, ahem, helpful small assistant

Yorkiechef

A reverse view of this....assuming you earn £30k in uk, take home £1900 per month.

What would you pay in uk for a decent place? £950? Or 50% of your take home.

So why wouldn't you pay 50% of your take home here in Canada?

hh619

Hi evets - thanks for your reply.

To be honest i think Toronto / GTA are now out of the question with house prices. Ottawa definitely has more affordable housing. I've found a few suitable jobs, although definitely not as many as Toronto.

We are also looking near London, ON as houses there are much cheaper and i've found quite a few jobs in the surrounding areas.

If we can find somewhere with 3 Bedrooms 2 baths for under $2k i think we'd be ok on $70k. Although, with all these extra taxes i will need to do some more research

raindropsandroses

What about beer and wine for around the bonfire in fall, and spirits for the Thanksgiving/Halloween/Christmas non-stop party season?

Budget for porch and front door seasonal decor too

hh619

Haha, i can tame wild yards! But no one would want me to do their flooring or tiling though!!

Partner definitely enjoys it more than i do, perhaps you're on to something