As in you have not borne enough of the brunt of inflation lately, the rising cost of rent in the GTA for a 1-bedroom condo is going up by 20% and a 2-bedroom by 14.5%. The average monthly rent for a one-bedroom is now $2,481, and for a two-bedroom is $3,184.
Forget about owning a place for a while
With a skyrocketing interest rate of more than 5% minimum raised by The Bank of Canada for the 6th consecutive time this year, 2022, if you plan to buy a house worth $900,000 in GTA on a $0 down, you need to have somewhere $5500-6500 monthly, excluding tax, in your pocket.
How much do you need to make to afford your own?
Well, suppose you are a first-time homebuyer with a family or single and possess a car. You at least need to have a combined or single-earning of six-figure income to afford a four-bedroom family home. In that case, you may also need to consider several factors, i.e., the rising cost of food, gas, electricity, utilities, clothes, internet, phone, and more. Usually, people don't consider these factors, and that's when they use their credit cards for grocery and other purchases. And here comes the monster of debt which keeps on piling up and never ends.
The best way to manage living during these times is to keep your emotions in check while you spend. Walk more instead of driving shorter distances, prepare healthy meals at home, etc. Remember to pay for groceries, gas, and other daily purchases through debit or cash to avoid the hefty credit card interest and debt. Only buy what you need in moderation and maybe take up a side hustle for a sinking fund.
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