Ottawa - salary information
Jul 24th 2009, 2:10 pm
#16
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Location: Upstate South Carolina
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Re: Ottawa - salary information
Just once, and it should last at least 20 years. Same goes for a furnace etc.
But if I took the max mortgage the bank would give me based on 3x my income, then when these expenses arise it would make life much more difficult. My point is that in 50+ years of home ownership in the UK my parents never had to replace a roof. Add to that often it can cost $10k and up and its more food for thought.
Like Tuppence, I too live in dread of my septic giving up the ghost...a couple of my neighbours are looking at $25 to 30k for that bill, thats 15-20% of the value of the houses around here to put it in perspective.
But if I took the max mortgage the bank would give me based on 3x my income, then when these expenses arise it would make life much more difficult. My point is that in 50+ years of home ownership in the UK my parents never had to replace a roof. Add to that often it can cost $10k and up and its more food for thought.
Like Tuppence, I too live in dread of my septic giving up the ghost...a couple of my neighbours are looking at $25 to 30k for that bill, thats 15-20% of the value of the houses around here to put it in perspective.
Last edited by iaink; Jul 24th 2009 at 2:13 pm.
Jul 24th 2009, 2:30 pm
#17
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Joined: Sep 2005
Location: Windsor, ON
Posts: 3,374
Re: Ottawa - salary information
Hmmm, food for thought....
I'm paying $1600 a month rent at the moment, which is manageable, but then I'm not paying property taxes or maintenance on the house (not that anything major has gone wrong as yet).
I'm paying $1600 a month rent at the moment, which is manageable, but then I'm not paying property taxes or maintenance on the house (not that anything major has gone wrong as yet).
Jul 24th 2009, 2:33 pm
#18
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Joined: Aug 2007
Location: North
Posts: 1,357
Re: Ottawa - salary information
Just once, and it should last at least 20 years. Same goes for a furnace etc.
But if I took the max mortgage the bank would give me based on 3x my income, then when these expenses arise it would make life much more difficult. My point is that in 50+ years of home ownership in the UK my parents never had to replace a roof. Add to that often it can cost $10k and up and its more food for thought.
Like Tuppence, I too live in dread of my septic giving up the ghost...a couple of my neighbours are looking at $25 to 30k for that bill, thats 15-20% of the value of the houses around here to put it in perspective.
But if I took the max mortgage the bank would give me based on 3x my income, then when these expenses arise it would make life much more difficult. My point is that in 50+ years of home ownership in the UK my parents never had to replace a roof. Add to that often it can cost $10k and up and its more food for thought.
Like Tuppence, I too live in dread of my septic giving up the ghost...a couple of my neighbours are looking at $25 to 30k for that bill, thats 15-20% of the value of the houses around here to put it in perspective.
We pay so little at the moment for water, gas, electric, phone, internet etc. here in the UK I think with over the last few years of reading this forum I've gradually come to the conclusion that even with roughly equivalent salary ($60K vs £30K) we are probably going to be a reasonable chunk worse off when/if we move...
Jul 24th 2009, 2:35 pm
#19
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Re: Ottawa - salary information
Yep, and that's another thing even the rents seem more expensive over there. Although they mostly include property taxes don't they?
Jul 24th 2009, 2:38 pm
#20
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Location: Windsor, ON
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Re: Ottawa - salary information
Some rents include utility bills, ours doesn't...
Jul 24th 2009, 3:00 pm
#21
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Joined: Jun 2005
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Re: Ottawa - salary information
Well you are really - the landlord will have factored those elements into your rent in order to cover the overhead.
Jul 24th 2009, 3:07 pm
#22
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Joined: Sep 2003
Location: Upstate South Carolina
Posts: 30,768
Re: Ottawa - salary information
I think there is a fundamental difference between the UK and Canada, (with some exceptions here.)
In the UK property value tends to well exceed inflation over the long term, so taking a mortage and paying interest on that over 25 or 30 years in order to own your own home is seen as an investment. Once you reach retirement age you have the option to downsize and cash in on the equity that has built over the years to fund your retirement in part. The climate is not as extreme so maintainence does not keep coming round to bite you.
Here in Canada the investment potential is not as great in the first place, and maintainence is more of a factor. Unless you can afford to pay extra into your mortgage to pay it off a lot faster and minimise the interest paid then you buy a house here to live in, not as an investment.
In many cases here I suspect you might actually be further ahead to pay less than the combined mortgage and maintainence costs to rent for thirty years and save the difference into an tax free RRSP, and I suspect its possible to come out with more retirement savings at the end that way. The downside of course is you pay that rent over for ever (just as you will property taxes I guess), and there is nothing there in the way of inheretence perhaps, but Im just throwing it out there as a school of thought here....
In the UK property value tends to well exceed inflation over the long term, so taking a mortage and paying interest on that over 25 or 30 years in order to own your own home is seen as an investment. Once you reach retirement age you have the option to downsize and cash in on the equity that has built over the years to fund your retirement in part. The climate is not as extreme so maintainence does not keep coming round to bite you.
Here in Canada the investment potential is not as great in the first place, and maintainence is more of a factor. Unless you can afford to pay extra into your mortgage to pay it off a lot faster and minimise the interest paid then you buy a house here to live in, not as an investment.
In many cases here I suspect you might actually be further ahead to pay less than the combined mortgage and maintainence costs to rent for thirty years and save the difference into an tax free RRSP, and I suspect its possible to come out with more retirement savings at the end that way. The downside of course is you pay that rent over for ever (just as you will property taxes I guess), and there is nothing there in the way of inheretence perhaps, but Im just throwing it out there as a school of thought here....
Jul 24th 2009, 3:16 pm
#23
Joined: Dec 2008
Posts: 3,054
Re: Ottawa - salary information
Actually i find rent is cheaper over here and yes most principal bills are included.
Last edited by dboy; Jul 24th 2009 at 3:19 pm.
Jul 24th 2009, 3:19 pm
#24
Joined: Jul 2005
Posts: 15,883
Re: Ottawa - salary information
Here in Canada the investment potential is not as great in the first place, and maintainence is more of a factor. Unless you can afford to pay extra into your mortgage to pay it off a lot faster and minimise the interest paid then you buy a house here to live in, not as an investment.
In many cases here I suspect you might actually be further ahead to pay less than the combined mortgage and maintainence costs to rent for thirty years and save the difference into an tax free RRSP, and I suspect its possible to come out with more retirement savings at the end that way. The downside of course is you pay that rent over for ever (just as you will property taxes I guess), and there is nothing there in the way of inheretence perhaps, but Im just throwing it out there as a school of thought here....
Jul 24th 2009, 3:25 pm
#25
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Joined: Sep 2003
Location: Upstate South Carolina
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Re: Ottawa - salary information
Sorry, I realise you are an old man, so I put it in bold to help you this time around. Should I make the font larger too?
Obviously there are exeptions. Waterfront property is probably one too...they arent making any more of that. Edmonton and Calgary are peculiar examples, in that the boom and bust nature of the oil economy means its probably possible to lose large amounts too if you buy at the wrong time...kind of like Aberdeen in that respect. Vancouver and parts of Toronto might also be considered investment areas?
Last edited by iaink; Jul 24th 2009 at 3:32 pm.
Jul 24th 2009, 3:27 pm
#26
Joined: Dec 2008
Posts: 3,054
Re: Ottawa - salary information
Hmm, interesting. Obviously the septic tank would only apply if out of town and away from the sewerage main services.
We pay so little at the moment for water, gas, electric, phone, internet etc. here in the UK I think with over the last few years of reading this forum I've gradually come to the conclusion that even with roughly equivalent salary ($60K vs £30K) we are probably going to be a reasonable chunk worse off when/if we move...
We pay so little at the moment for water, gas, electric, phone, internet etc. here in the UK I think with over the last few years of reading this forum I've gradually come to the conclusion that even with roughly equivalent salary ($60K vs £30K) we are probably going to be a reasonable chunk worse off when/if we move...
Vancouver does not have an extreme/ harsher climate but does have more expensive real estate..... Other than that I doubt there's very little difference day to day.
Jul 24th 2009, 4:58 pm
#27
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Posts: 404
Re: Ottawa - salary information
hey guys, been in canada for just under a week now and loving it! spent 3 nights in Toronto, which had lots to do, but I certainly wouldnt live there! Now we have spent 3 nights in Manotick, Ottawa and are really enjoying it.... apart from the weather! i keep getting told that its going to heat up soon, but the long term weather forecast isnt looking great!
Anyway, im an electrical engineer with a BEng Hons and 10 years of UK experience. I have had 2 interviews so far, with another 5 planned! First one went ok, i really didnt take to the guy but i walked away with a potential job offer of $50k. The second interview went brilliantly and i clicked instantly with the president and vice president. This time i received a firm job offer for $65k with a $10k rise in a year once i had gained canadian experience. This is slightly more than i earn in the UK so happy with that, but i'll see what the other companies say also.
My real issue is that my girlfriend is a primary teacher, and we know its going to be a hard slog for her to get a job. We've been advised she would probably pick up supply work for the first few years until she gained enough canadian experience to get a permanent job. Hopefully girlfriend can contribute a meaningful amount to our finances, but in the meantime would my $65-75k be a reasonable salary to allow us to live a good lifestyle.
In the long term if we were to move over we would sell our UK house and put the £75k ($150k) equity down on a $350k house in South Ottawa. This would leave a mortgage of about $200k, would this be comfortably serviceable on a joint annual income of $100-125k? i haven't really worked out all the figures yet, but i'm just looking to get a feel for whether we would be financially better off in Canada....... not to mention all the personal/non-financial benefits of moving over!
cheers
Anyway, im an electrical engineer with a BEng Hons and 10 years of UK experience. I have had 2 interviews so far, with another 5 planned! First one went ok, i really didnt take to the guy but i walked away with a potential job offer of $50k. The second interview went brilliantly and i clicked instantly with the president and vice president. This time i received a firm job offer for $65k with a $10k rise in a year once i had gained canadian experience. This is slightly more than i earn in the UK so happy with that, but i'll see what the other companies say also.
My real issue is that my girlfriend is a primary teacher, and we know its going to be a hard slog for her to get a job. We've been advised she would probably pick up supply work for the first few years until she gained enough canadian experience to get a permanent job. Hopefully girlfriend can contribute a meaningful amount to our finances, but in the meantime would my $65-75k be a reasonable salary to allow us to live a good lifestyle.
In the long term if we were to move over we would sell our UK house and put the £75k ($150k) equity down on a $350k house in South Ottawa. This would leave a mortgage of about $200k, would this be comfortably serviceable on a joint annual income of $100-125k? i haven't really worked out all the figures yet, but i'm just looking to get a feel for whether we would be financially better off in Canada....... not to mention all the personal/non-financial benefits of moving over!
cheers
A couple of random thoughts:
We rented for the first year. This gave us 12 months to case out where to settle.
Don't count on selling the UK house to fund a $350k Canadian house. This website is littered with "I can't sell my house" horror stories.
Factor in the costs of two distinct wardrobes for you and the girlfriend - one for summer, one for winter.
Depending on how rural an area you settle in - consider what sort of car you should get. Oh, how I'd love a Mustang - but you can't use it six months of the year. All that power on roads slick with freezing rain... it may be better to get a a midsize 4X4. I know, I know, there are people that do use them 12 months... but I wouldn't.
The UK isn't that far away. There's daily flights from YOW to LHR. You can probably get a return ticket for around $800 each. Ouch yes, - but it's not impossible.
Jul 24th 2009, 5:10 pm
#29
Joined: Aug 2005
Posts: 14,227
Re: Ottawa - salary information
yes, buying at the bottom and selling at the top - genius! I wouldn't expect the same for someone buying right now and selling in 40 years (I mean in real terms as obviously it will be more nominally).