10 ms·

If you're saving using after-tax dollars, savings 10% of 170K top line is therefore not $17K. For interest, according to https://turbotax.intuit.ca/tax-resourc

by kitcar 6y ago

If you're saving using after-tax dollars, savings 10% of 170K top line is therefore not $17K. For interest, according to https://turbotax.intuit.ca/tax-resources/canada-income-tax-calculator.jsp https://turbotax.intuit.ca/tax-resources/canada-income-tax-c... net on $170K is $111,547, meaning closer to $11K / year

Terretta 6y ago
So, 23 years instead of 24? Or 3.5 years instead of 3? Your correction without conclusion doesn’t seem helpful in deciding which calculation is least wrong.
- andi999 6y ago
  Actually if you really want to save 60k with a net annual salary of 111k, you could do it in prob 2 years (cancel you Amazon account). Ard 6,500 CAD per month should be enough to live by, shouldn't it.
- kitcar 6y ago
  The math is $1,000,000 is the average price of a house in Toronto[1]. You usually need 20% down for a house at $1M or more[2]. Therefore you need $200,000 downpayment, which at $11K / year is about 18 years, assuming no compounding (which at least today is basically the case currently in Canada with interest rates where they are). It should be noted though that it is pretty rare to reach $175K salary in the GTA before turning 30 (Average household income in Toronto is sub $100K[3]). Therefore for the majority of people it will take more than 18 years to build up that down-payment, which could be where the number in the article came from. [1] https://toronto.ctvnews.ca/average-gta-home-price-to-top-1-million-for-first-time-in-2021-real-estate-board-says-1.5300539#:~:text=The%20Toronto%20Regional%20Real%20Estate,an%20average%20%24929%2C692%20in%202020 https://toronto.ctvnews.ca/average-gta-home-price-to-top-1-m.... [2] https://www.moneysense.ca/spend/real-estate/cmhc-tightens-mortgage-rules-in-latest-response-to-covid-19/ https://www.moneysense.ca/spend/real-estate/cmhc-tightens-mo... [3] https://www.toronto.ca/city-government/data-research-maps/toronto-at-a-glance/ https://www.toronto.ca/city-government/data-research-maps/to...

by kitcar 6y ago

Terretta 6y ago

So, 23 years instead of 24? Or 3.5 years instead of 3? Your correction without conclusion doesn’t seem helpful in deciding which calculation is least wrong.

andi999 6y ago
Actually if you really want to save 60k with a net annual salary of 111k, you could do it in prob 2 years (cancel you Amazon account). Ard 6,500 CAD per month should be enough to live by, shouldn't it.
kitcar 6y ago
The math is $1,000,000 is the average price of a house in Toronto[1]. You usually need 20% down for a house at $1M or more[2]. Therefore you need $200,000 downpayment, which at $11K / year is about 18 years, assuming no compounding (which at least today is basically the case currently in Canada with interest rates where they are). It should be noted though that it is pretty rare to reach $175K salary in the GTA before turning 30 (Average household income in Toronto is sub $100K[3]). Therefore for the majority of people it will take more than 18 years to build up that down-payment, which could be where the number in the article came from. [1] https://toronto.ctvnews.ca/average-gta-home-price-to-top-1-million-for-first-time-in-2021-real-estate-board-says-1.5300539#:~:text=The%20Toronto%20Regional%20Real%20Estate,an%20average%20%24929%2C692%20in%202020 https://toronto.ctvnews.ca/average-gta-home-price-to-top-1-m.... [2] https://www.moneysense.ca/spend/real-estate/cmhc-tightens-mortgage-rules-in-latest-response-to-covid-19/ https://www.moneysense.ca/spend/real-estate/cmhc-tightens-mo... [3] https://www.toronto.ca/city-government/data-research-maps/toronto-at-a-glance/ https://www.toronto.ca/city-government/data-research-maps/to...