And if anything happens in the future, I feel like you could get by with this if you have a partner and a second income. Not that it wouldn’t be stressful. But I just thought, “Okay, I can see my future. I think I’m going to be single. I felt it was a big gamble for me to own a property without knowing what the future holds. These are different shots for different people, but I have no regrets that I didn’t buy.
Paying rent in an expensive market
I love my apartment, I love the location. It’s my house. But I also feel like I can’t afford to move even if I wanted to, because I know I’m not going to have a department of the same size in such a good location for the same price. I would pay $ 2,000 per month.
“Could I be billed outside my current apartment?” “
This worry is pervasive. There is this theory of how 30% of your income should go to rent. Well I think I’m getting close to 50%. I was just going to say I’m not stressed out, but if I still think about it I’d say it’s stress, right? Every time I pay my rent, I think to myself, “This will only increase. “My salary is not going to increase by the same percentage. At some point, there will be a disconnection.
I mean, right now I’m earning a really good salary, but I’m realistic enough to know that nothing lasts forever. Will I still be in office in five years? Probably not. But I can’t afford to move. So, what gives? I am 50 years old. My friends roll their eyes when I say this, but in reality I should be thinking about retirement. I don’t want to live anywhere else. I choose to live in Toronto. I like city life, I certainly don’t see myself in the suburbs or in the countryside. So if I choose to stay in my apartment, what else do I have to sacrifice and what happens when I retire? What happens when my pension doesn’t cover my rent — just the rent, not electricity, not Rogers [services], nothing else. What are people doing? I do not know the answer.
Advice on leasing versus buying from a financial planner
“I deal with clients on both ends of the spectrum,” says Kelly Ho, Chartered Financial Planner and Partner at DLD Financial Group Ltd. in Vancouver. “And what I mean by that is I have clients who are currently making decent money, who are in their 30s or 40s and who are renting and would like to buy, but their choice is either to save for a deposit, or to pay rent. ”
Either way, Ho’s approach is to help these clients decide which choice is right for them, financially speaking, is to set the numbers, and not just for a week or two. She delves into clients’ fixed expenses, discretionary spending, and even their risk of illness. “We [may have been] rely on their ability to earn x amount for x number of years to achieve a particular goal. But that’s a huge risk, especially for those who are single, right? You don’t have anyone else to lean on if something happens to you, ”she says.
Ho recommends finding out what your employer offers to cover these risks. “What does their long-term disability plan look like? Do they offer critical illness or life insurance? And, if not, is this something we should be factoring into your personal plan? “
Ho also says Young might benefit from being less rigid about his retirement plans. “A lot of my clients agree to move out when they retire,” she notes. When asked why they live where they are now, many will respond, “It’s because my job is here. This is where the job market is. This is where I need to be. However, when they are ready to quit their careers, they often say, “I am ready to move to a cheaper place so that I can have a more successful retirement.” “