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What Is The Cost Of Our First House In Canada | Can You Afford A House In Canada | Canada Couple - YouTube
Channel: Canada Couple Vlogs
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What do you are seeing is
the foundation of the house
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And along with it basement is also build.
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I hope you can see, windows are being made.
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there is the second stage, the outer
structure of the house is already build.
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In third stage, there the
roof of that house is build.
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And if you can see, the house beside that one
is completed, it's entire roof is covered,
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and the whole wooden structure is finished.
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So finally, a house look like this.
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When we decided to buy a
house and we start looking it
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we were really amazed to see all these
wooden houses and why they cost so much.
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But now we know that without
wood there wouldn't be any heating,
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and we will not get the
benifit of proper insulation
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they are not only made up of wood
but they contain other layers also
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due to which its foundation remain firm.
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As you can see here,
it is not wood.
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It is the same area where
we purchased our house,
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as the houses of the next
phase are getting build
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it was shocking for us to see
wooden houses, as Manpreet told
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but it is important, if they are only made with
brick and mortar, then it will hamper the insulation.
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Now we are used to watching wooden houses
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but you will be surprised to know
the cost of these wooden houses
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the detach house in the background, it is
approximately more than 2,000 square feet house
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but it's 1 million dollar house.
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1 million dollar is a huge amount,
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even if you convert it to Indian Rupees, even in Canada
not many people can afford a million dollar house.
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And this is the average cost of a good
detached house in greater Toronto area,
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Brampton, Mississauga
in these good areas
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and houses in Vancouver
cost more than this.
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So in this series we will tell you
about the whole process step by step
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we will share more information, in
the previous video you must have seen
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that we told you about the high level process,
so here we will start with initial steps.
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While showing you the houses,
madam stepped into the mud.
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Madam stepped into the mud.
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- My new shoes are ruined.
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- Her shoes became dirty.
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We will go home and wash
them and then we'll return.
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We went out for a walk, but...
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- He asking me to go a step back for the
video and that's why I stepped in the mud.
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- Obviously construction is going
on there, mud had to be there.
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Okay sorry, I'll clean it up.
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Let us continue the video, we will
again go for walk after cleaning the shoes.
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Let's continue the rest of the video.
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Cleaning is a long process, so I changed the
shoes otherwise the sunlight will go off
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it is important to complete the video.
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You are going to clean the shoes.
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It is a problem here, you might be
thinking that it is 6:00 or 7:00 p.m.
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but it is 8:40 p.m.
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it is problematic, but it is a benefit that here in
Canada you will have sunlight till 9:00 to 10:00 p.m.
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- Only in summers.
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- But there's disadvantage in
winter, the sunsets around 4:00-5:00 p.m.
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and we could not make videos,
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and this is one of the reasons why you get to see
less videos from Canadian youtubers in winter.
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-In winter we hibernate like polar bears.
-Yeah we stay indoors.
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...Anyways, lets stop all these
rubbish talks. And come to the point.
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- We'll not go there again.
- We will not go there, but to other area.
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Also where we'll get some light.
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We have again come to the same
location, but this place is neat and clean
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behind us construction is going on
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seeing our attire, hope they don't
think of us as construction workers.
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Jokes apart, starting the serious talk.
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So don't get discouraged by thinking you can't
ever buy one million dollar house in Canada
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but it's not that every house is of 1 million dollar
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if you want to find houses surrounding
GTA, you will find houses up to $6.5 lakhs,
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obviously it isn't going to be bigger than 2000 sq ft,
rather lower than that like 1800 sq ft or 1500 sq ft
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there's a lot of different types of houses
like- townhouses, semi detach, detach.
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Of course you wouldn't find a
detached house under $6.5 lakhs,
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you may find it in suburban areas, which
will be at a large distance from downtown
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and chances are there that
it will be a very old house,
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probably you might need
to invest in its maintenance.
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Let us assume you purchased a $6.5 lakh house
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Apart from $6.5 lakhs, you might need to
spend additional $2 lakhs after moving in
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so, it is not beneficial for you.
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therefore realtor is very important.
Realtor will do a thorough inspection,
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he will do a separate
inspection of the house
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and he will tell you the
negative points about the house.
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If you are in search of a realtors, you can mail us,
we can get you in touch with some good realtors.
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Even if you have requirement of 3-4 bedroom, so,
on an average houses here contains 3 bedrooms
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obviously if you consider the cost & area, then
you might get 3 small bedrooms in little area.
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And you couldn't be able to
accommodate that too many stuff.
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and in many cases you might not find basement,
so you can consider that as an additional cost.
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So if you are buying new or a little older
house and if there is no basement in them,
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then that's an additional cost for you.
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So additional expenditure is too much.
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- And it is very difficult to get
basement in houses under $6.5 lakh,
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because those houses will cost higher which contains
rental basement, which you can give in rent.
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So let us assume you are buying a
house with an average cost of $7 lakh
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and you have to make 5%
minimum down payment on it.
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you can do 5% as well as 20%. So let us
assume you are buying an house of $7 lakh.
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So, 5% is $35,000
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and to save $35,000
you at least need two years.
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Let's say you are a couple
and both of you are doing job
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you save the entire
salary of your spouse and
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If I assume that your average
salary is $4000 per person.
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So you'll need to spend $4000 per month
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and you will save $4000 for the house.
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So you will be able to save
50,000 dollars in a year.
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Now you might say that as
I have saved you $50,000 in a year,
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now can I buy the house with a
down payment of $35,000 dollars?
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But no, it doesn't work like this.
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You must have at least $100,000, while you
are going to do the down payment of $35,000
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Why?
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as Manpreet has said, there
are additional expenditure
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it's not that you have to only
make $35000 down payment
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and you brought the house, and you
start paying the mortgage every month.
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and there will be no
expenditure afterwards.
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You need to pay closing cost, actually $35,000
down payment cost rises to $50,000.
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and God forbid if you
have to spend on the house
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then you might need to
spend the whole $100,000.
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So it is a very important point to consider.
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So it is always recommended that you need
to have a buffer amount in your account
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while you are doing
the down payment.
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Because god forbid, if any emergency comes,
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or like looking at the current situation
where there is an uncertainty regarding jobs,
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therefore you always have to plan
and keep a buffer amount.
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You can take the current situation as an example
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now the situation is such that there are
many peoples who cannot pay their mortgages
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Why? Because they were
depending upon their salary.
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But many have lost their jobs.
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Unlike before they are now
unable to pay for the mortgage
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this is the biggest disadvantage if
you are solely relying on the salary.
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So as we assumed that you
are saving $4000 per month
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it is $50,000 in a year approximately
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and then you can do $50,000 in next two years.
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and then in two years you can buy a house,
or at least you can start the procedure.
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But it is not that you have to
wait for two years mandatorily.
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I have seen situations where people book
the houses just after landing in Canada
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from new builders, while in pre
constructions. They get it after 2 years
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But they book it beforehand.
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You can purchase it with in one year, it is possible
when you bring in your savings from your country
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like we brought savings with us, and this is the
reason that we were able to book with in 1.5 years
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otherwise, it would have been very difficult, to
making savings from your salary and then buy the house.
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So it takes at least 3-4 years.
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Even if you are not bringing your
savings, then also you have a solution
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through which you can save
money quickly, and buy a house.
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So the solution is that if you
are coming here as couple
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so one of you can move to contract job
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and the other one can do full time job
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because in contractual
jobs you get higher salary.
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So in that way you can save more
money, so that's like a quick solution.
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So instead of $4,000 per month maybe you
will be able to save $6000 to $7000 per month.
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So the two years wait of buying the
house might get reduced to one year.
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But again, there's risk involved in contractual
jobs, so you have to take some risk.
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Because contractual jobs are
not that certain, there is no surety,
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your contract might get over in 6 months, but
a full time job is going to stay with you.
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You might be thinking we are not telling you
the price, but instead showing you shoe and mud
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wait, we will tell you
the cost of our house.
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We had to tell you about the basics, and then we'll
tell you the cost, so that you can link everything
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the cost for our semi detach house was $7,50,000
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which is okay, because price range
of semi detach houses are like this.
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and we will make a detailed video on townhouses,
semi detach, detach. And we'll go inside them.
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But $7,50,000 is not the final cost.
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We did 7% down payment on this
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obviously if you make a
down payment less than 20%
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then the cost increases, I'll tell you about
it in the next video why it is increased.
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If you make a 20% down payment,
then you'll be paying exact $750,000 cost.
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It is not that after purchasing the house for
$7,50,000, there'll be no other expenditure
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you need to add it's closing cost,
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if a builder gives you a new house
he doesn't provide you appliances
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so we have to bear that cost also.
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For example,
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we installed a AC two days ago
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and it cost $3500
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just for installing the AC only.
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Just imagine!
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So there are such small
expenditure, including the closing cost.
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By adding all the small expenditures, in total we
spend $8,00,000 after purchasing a house of $7,50,000.
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and it was a new house, like the
construction which is going in the background
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so the expenditure was little higher.
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So there is advantage as well as in disadvantage in
a new house, we will make a detailed video on this,
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but at the end we want tell that, after gathering
all the information don't make any wrong decision
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by thinking that the market at the moment is
down or you get a cheap house, and you buy it.
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And that's why we told you
every point, so don't rush for it.
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Let me give you an example,
our previous apartment
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was an one room apartment at lake shore in
Mississauga, it was very nice and we were very happy
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Lake shore is a nice place and
we didn't need more than one room,
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it was very near to GO Station.
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But if our situation didn't
changed, for example
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if our family wasn't coming here, we
might not had purchased this house.
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If your situation is also
same, if you do not need house
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so don't rush for it.
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Just to be in market, don't rush for it.
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Take your time, and when
you feel it is the right time,
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and you got savings for the next
one year and you have stable income
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and also you need a house,
then only you go for it.
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because if your rent is low, for example our
rent was $1500, which is very low I would say
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because in the areas of Lake shore, Mississauga, i.e
in Downtown areas you might not get rent below $2000.
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So if your rent is low, then you got another
reason that you don't need a house at this moment.
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You can survive there for the next one year.
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and then you shortlist the whole area.
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If you quickly purchase after coming here, then you
might not know which places might suit your requirements
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so you might need 1 to 1.5 years to see, which
area is better, and which type of house you need.
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So you can start with marker research,
you can check on websites about the houses
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or you can see our videos, go to the open
houses, so that you get an understanding
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that what type of house you
want to purchase after 1 to 1.5 year.
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You will have a clear
picture of the whole scenario.
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So no harm in that, right?
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And the very objective of making this series
is to tell you what are the things we learnt
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in this one year process through 4-5 videos,
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so that you might be able to
save some thousand dollars.
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So that you don't have to regret afterwards for
buying the house based on emotional decision
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because purchasing a house is
the biggest investment in Canada
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you must not take a bad decision,
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once you take a bad decision, you will
be regreting for the next 10 to 15 years.
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So purchase a low cost
house of your own choice.
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That is our objective.
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If you enjoyed the video, then please like it,
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share it with your friends who
are thinking of purchasing a house
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we will make continuously back to back videos.
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So keep checking the channel,
subscribe and press the bell icon as well.
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Now I am going to be get scolded because it's already
getting dark outside and we haven't started our walk.
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and I don't know, due to the low
light video quality might get hampered.
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- And have to wash the shoes as well.
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So see you in next video, keep
supporting, take care, stay safe.
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- Till next time, stick around.
- Stick around.
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