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<\/strong><\/p>\nAccording to data put out by the Real Estate Board of Greater Vancouver<\/a> (REBGV) and the Toronto Real Estate Board<\/a> (TREB), sales over the past year in Metro Vancouver and Toronto have declined significantly (-35.1% in Vancouver May 2018 and -22.2% in Toronto May 2018). But while the average price for Toronto homes declined by 6.6% due to the lower demand, Vancouver prices rose 11.5%.<\/p>\n <\/p>\n \u201cWith fewer homes selling today compared to recent years, the number of homes available for sale is rising,\u201d Phil Moore, REBGV president said. \u201cThe selection of homes for sale in Metro Vancouver has risen to the highest levels we\u2019ve seen in the last two years, yet supply is still below our long-term historical averages.\u201d[1]<\/a><\/p>\n Though the real estate markets for both cities are cooling off, prices remain unreachable for many hoping to purchase in these areas.<\/p>\n The average price of homes in Metro Vancouver and in Toronto in the month of May 2018 are listed below<\/p>\n
| <\/td>\n | Toronto<\/td>\n | Vancouver<\/td>\n<\/tr>\n | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Detached<\/td>\n | $1,426,094<\/td>\n | $1,608,000<\/td>\n<\/tr>\n | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Semi-Detached<\/td>\n | $1,067,128<\/td>\n | N\/A<\/td>\n<\/tr>\n | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Townhouse<\/td>\n | $741,296<\/td>\n | $859,500<\/td>\n<\/tr>\n | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Apartment<\/td>\n | $602,804<\/td>\n | $701,700<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
Conventional mortgages usually require a 20% downpayment. For even the cheapest option on the above table (Toronto apartment), it means $120,560 for only the downpayment.<\/p>\n If you want to move to one of these cities to start a family in a detached home, it costs well over a million dollars. A 20% downpayment for an average Vancouver detached is around $321,600 and for an average Toronto detached is around $285,218.<\/p>\n To save $300,000 for an only the downpayment on a house is no easy task. Even $120,000 for a Toronto apartment is highly daunting.<\/p>\n Now that you know what you need to save for the down, let\u2019s look at some common city-lifestyle expenses.<\/p>\n \u00a0<\/strong><\/p>\n <\/p>\n If you tally up the expenses, living in either city in your own apartment costs almost $3500\/month! Living with one roommate costs slightly under $3000 in Vancouver and approximately $2750 in Toronto. This doesn\u2019t include yearly expenses like vacations or Christmas shopping. Additionally, if you have a car or outstanding debts, that\u2019s a whole new budget.<\/p>\n <\/p>\n In this scenario, the plan is to go from nothing to a downpayment in five years. This is how much you would need to save for the following,<\/p>\n Adding in monthly expenses, buying a Vancouver detached while living alone or with a roommate, or buying a Toronto detached while living alone requires a net annual income of around $99,000-$106,000. After factoring taxes, this approximates $147,000-$160,000 of annual gross income a year. Saving for a Toronto detached while living with a roommate is a bit better at a net annual income requirement of around $90,000 or at a gross annual income $135,000.<\/p>\n To afford a Vancouver apartment while living alone or with a roommate, or to afford a Toronto apartment while living alone requires an annual net income of $64,000-$70,000 or an annual gross income of $86,000-$96,000. And to afford a Toronto apartment while living with a roommate requires an annual net income of around $57,000 or an annual gross income of $79,000.<\/p>\n However, five years is a long time and prices can rise or fall drastically.<\/p>\n \u00a0<\/strong><\/p>\n Vancouver and Toronto are two very different cities and the price of property is only one of many characteristics of each city. Vancouver provides milder weather; there\u2019s less extreme hots and colds like in Toronto. Vancouver is also great for the outdoorsy people, with Stanley park only steps away from the city\u2019s core. In contrast, people cite Toronto for better and higher paying career opportunities. The city is also better known for its restaurants, bars, and nightlife in comparison to its west-coast counterpart.<\/p>\n |
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