It's tough but not "mission impossible" la...For new grad, most of us will live with parents right. Pack lunch (so minimal lunch expense). The only expense is gas (or public transportation) for about $100/month. Cell phone $30 (I'm not talking about fancy iPhone with data package), car insurance $120/month, then $100 for food, $50 entertainment (say movie), $100 for parents. ~$500 expense is not that bad eh?
If you have a goal u shouldn't be 大洗 in the first place right...
And in my example...I didn't count salary adjustment wor..."supposely" salary goes up (at least it should cover inflation, if not, try switch job).
Buying a $400K house with a $40K salary is a bit ambitious......
On your defense, I know many chinese kids live with their families and they pay ABSOLUTELY NOTHING - ie, all of their salaries go to entertainment. They would try to add an "eduational value" spin on things so their parents will pay for their phones/ computers, etc.
Having said that, there are plenty of properties in Burnaby/ South Vancouver/ Surrey for under $300K (some are older, or not the best location, but if you're making $40K you have to compromise). 20% downpayment is mostly acceptable in Vancouver, that's about $60K downpayment and $1000+/ month. For the downpayment, if you save $800 a month, it takes around 6 years or so, depending how financial savvy you are, you may take less time from riskier investments. Most likely you can get a loan from your parents for at least portion of it, which will not be too bad.
Anyway, my point is, if your goal is to buy your own place and you're not being picky, even with a modest salary you are able to afford to buy under 30.
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It's tough but not "mission impossible" la...For new grad, most of us will live ...
fibbi 發表於 2010-7-16 04:00 PM
$100 for parents and you live there and eat there? no way la...
When I was a fresh grad, I used to give more than half of my after tax income to my parents monthly.
I also have a car too... so expenses goes up from there...
then birthday and xmas gifts to families and friends? buy new clothes sometimes? Cos this saving plan is long term.. like 6 years... right?
How about RRSP and life insurance?
Well...if I'm the parents, I don't expect kids to pay me anything IF they are saving up for a bigger goal...
RRSP....then part of the saving goes to RRSP, part goes to saving acct lor...coz you can get $ from RRSP when you buy the house...
Btw, I never buy life insurance.
If saving $1500 out of $2000 is tough, how about saving $1200 a month...then can get $86K in 6 yrs. So just pick a cheaper property as Big C jeh says...300K property instead of $400K....Or ... save 7 years instead of 6 years lor...
But having said that...I do give half of my salary to parents...because I don't have plan to buy a property.
Having said that, there are plenty of properties in Burnaby/ South Vancouver/ Surrey for under $300K (some are older, or not the best location, but if you're making $40K you have to compromise).
Uhh.. There isn't "plenty" of places which can be had in Burnaby/ South Vancouver for under $300k. Your choices would be limited to some severely run-down apartments.
Housings in surrey is significantly cheaper so it is not exactly comparable to the other 2.
講番買樓，如果係做IT嘅，new grad都可以搵到＄40K，每個月都應該有＄2000 after tax，咁如果唔大洗，儲＄1500一個月，一年儲＄18K，6年就儲夠＄100K去買屋，買個＄400K 嘅apartment嚟供都OK嘅。
First of all, with a 40k salary, your take home earnings is closer to 30k/ year or 2.5k/month.Also not sure where you got the 40k figures. Most programmers I know start at least at 50k for a new grad.
Second to assume that you only spend $500 spending a month means you are leeching off you parents (free food + rent etc) I mean, great if your parents are ok with that but not everyone would want to do that.
發表於 2010-7-16 15:49
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