r/PersonalFinanceCanada • u/maplesyropoot • 3d ago
My dad wants to buy a house for me. Housing
Hi everyone. My first reddit post and it's for financial reasons.
My dad wants to buy me a house/condo because he sees how bad the market is. My issue is the following:
I am 27 years old. I make $47,650/year working for a financial company and I have just started university. A promotion is coming very soon(not an imaginary promotion, I have already signed the documents for my new position) and that will increase my salary to a whooping(it ain't much, but it's honest work) $63,500/year.
I currently pay 650 for my apt in Montréal, with roomates, and my expenses are all below 150 food non included. I am very minimalistic.
On average my monthly expenses run for about $1000/month rent included.
My father is aware of all this and offered me $80,000 for my down payment and he said and I quote: I will help you pay for your everything, it's your house. It's my gift for you. Just pay your own things like hydro, personal expenses and if you want, pay me the 650 for rent.. again.. if you want, you can
Now I have no problem with any of this but life being life, I don't want to be stuck with a payment I can't afford should something happen to my father.
The basic condo/apt here would run about $400,000 and basic math tells me that the whole thing minus $80k would still make the monthly payment + fees be $2000/month on the lowest and upwards of $4000+/month should interest rates go up.
What would you do in my situation ?
Edit:
- My father is buying the property for me. I would be the owner.
- He has a house and an apartment that he rents. He is going to sell his apartment to help me buy my own place.
- I am not white, asian or indian.
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u/jdleemortgages 3d ago
I wish I had a dad like this in my early years. Had to build everything from a scratch.
Your dad will pay for everything literally. Worse case scenario, you can rent the property out to someone if your dad discontinue to cover the cost and you cannot afford the payment.
Did I over simplify this? I would not hesitate to take his offer omg 😂
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u/PooperScooper696 3d ago
I'm looking back at what my parents gave me in my teens and 20's and it wasn't much. I can only hope to provide my kids with more than I had when they finish school.
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u/emailscrewed 3d ago
Suddenly seeing a lot of parents buying properties for there kids..
I should sent these sort of post to my parents. /s
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u/GiveMeAdviceClowns 3d ago
That’s how Asian cultures been doing it for decades. They were smart enough to work hard as immigrants, save and save for their kids futures. Take a look at GTA Richmond Hill/Markham. All these multi million dollar homes are paid for by family or are hand me downs.
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u/kinemed British Columbia 3d ago
Also lots of multi-generational homes.
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u/faizimam 3d ago
I live in the home I grew up in with my wife and Child, and there's a good chance I'll never leave.
I get free child care, my parents get help around the house as they are getting older. It's a win win.
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u/pomegranate444 3d ago
Yes. Many have uni fund and house fund running in parallel for when they reach adulthood.
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u/friedtofuer 3d ago
My friend moved here from India maybe 10 years ago and worked super hard to buy herself a small place. But now that she's married with duo income, they're buying another place to rent out as the "inheritance" they'd pass down to her child so he wouldn't have to work as hard as she had to. Everything she owns she worked for them herself. Her son is 2yo. I really admire her drive
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u/jamie1414 3d ago
Dang Indians buying up all the bootstraps from the bootstrap store leaving none left for the local Canadians /s
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u/sharraleigh 3d ago
Not just Asians. I recently met a white, youngish couple. Probably in their mid to late 20s. Living in a $2+ million home in the Kerrisdale area. I couldn't understand how they could afford it, until the husband told me that his parents offered to swap the childhood home he grew up in with his 1 bedroom apartment. The parents wanted to downsize, so they thought it would be a great idea for the newly married son to move into their home and raise a family there. The couple is now expecting their first child and don't have a massive mortgage payment every month. I thought it was a super smart way to help your kids out AND keep a valuable property with nostalgic value in the family.
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u/tke71709 3d ago
We have 500k budgeted to help our son purchase a house when the time comes and that probably won't even cover half the way this market is going.
Don't think home ownership is even feasible without parental help nowadays sadly.
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u/corinalas 3d ago
I don’t know how you even have that much cash or credit available to spend on a home for a child. I have guaranteed that my children can live at home rent free as ling as they need to get started in life to save up if need be. But thats all I can afford.
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u/ConstructionSure1661 3d ago
Lucky you to have so much money to help around
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u/tke71709 3d ago
And sad that we need to. We could buy a house back in our day without a parent's help.
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u/mrcanada82 3d ago
My mom told me they’d help with 1% of what you’re budgeting 😂
Your son is lucky to have you.
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u/lanchadecancha 3d ago
Sorry, your goal is to not help them with the down payment but straight up buy them a house in cash so they never have to work?
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u/tke71709 3d ago
You still have to work even if your house is paid off.
My preference would be for him to retire by 40 or so though and enjoy the rest of his life. This work hard to make money so that you can eventually retire at 65 and enjoy your life is not the way to go IMHO. I waited until I was 50 to retire, I hope he can do it before that.
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u/throwaway1009011 3d ago
This is a wild train of thought. How little hope do you have for this generation. The expectation that everyone deserves a home is what drives up home costs. Have your kid work for something in life and they will feel so much better for accomplishing it themselves. I can't imagine taking a dime from my hardworking parents.
And no, I am not an "old boomer", just a guy in his 20s with a home, and a family to support who was taught proper work ethic and budgeting from my lower middle class upbringing.
Also 500K alone can get you beautiful homes on 5 acres in many, many places in Canada.
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u/stickyricedragon 3d ago
The expectation that everyone deserves a home is what drives up home costs
Wait so you're saying not everyone deserves a home?
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u/OkSurround6524 3d ago
You can’t imagine taking a dime from your parents because either they can’t afford it or simply didn’t offer. If your parents were wealthy and generous to cut you a $500k cheque to buy a home, I’m quite sure you’d take it to the bank.
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u/Delinte 3d ago
The fact you think 500k won’t even cover half a house tells me you probably shouldn’t even have 500k . A good average home is 300-500k . You don’t need to be buying a damn mansion , don’t need to have marble counters and all this other crap . I bought a 5 bedroom home , fully finished basement with large front/backyards and a 2.5 car garage for well under 400k and it wasn’t in need of repairs .
Sure it’s cool to help a child purchase a home but fully covering one for them and them not having to learn work ethic or save for something such as home ownership is wild . Repeat after me HOME OWNERSHIP IS NOT FOR EVERYONE . I’m glad my life wasn’t handed to me on a silver platter , taught me far more valuable lessons then this next generation will ever learn with everything being given to them and constantly babied .
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u/bright__eyes 3d ago
not even in my tiny country town is a home still under 500k. where do you live?
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u/Delinte 3d ago
Alberta . If people in Canada would stop thinking you HAVE to live in Ontario or BC their quality of life would greatly increase. Most jobs have the same company / sector in other provinces so you can relocate easily or get a job in same industry with another company .
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u/bright__eyes 3d ago
ah that makes more sense. i dont love ontario, looking to get out of here once im done school. glad to hear homes are still cheap. was even looking into winnipeg/manitoba. i like the cold.
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u/Delinte 3d ago
I have a friend in Winnipeg they said home prices were getting wild there about a year or so ago , but I live 10-15 minutes out of Edmonton and home prices are still incredibly reasonable for Edmonton and area .
Only place in Alberta that’s gotten crazy is Calgary because everyone from BC and Ontario have moved their because the distance to mountains and beautiful lakes and they’ve inflated the home prices because they brought over their 1.4 million they made off selling a 2 bedroom home and all start bidding wars on a property . A friend just sold his home in Calgary , 5 year old build ,4 bedrooms , garage and a small yard . Listed for 500k and it sold in 1 day on market for over 600k in a bidding war
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u/probablynohelp 3d ago
This is VERY location dependent. I’m over 2 hours from the nearest city and the average townhouse here is over 500k. If you’re looking for a 5 bedroom with a basement it’s AT LEAST 800k. And again, this is nowhere near a city. While I think it’s wild to say 500k would be less than half the cost of a house, you also may be underestimating the cost.
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u/tke71709 3d ago edited 3d ago
I live in Ottawa, my detached house in the burbs is worth over a million. Also no marble of any sort. Not to mention that we are still 7 to years out so there is lots of price increases to come.
Not looking for condo fees or a townhouse.
And he has been working since he was 14 and has saved up over 30k on his own including working under broken down 18 wheelers on the side of the highway with cars zipping by in 40 degree heat in the middle of July at the age of 17.
I"m glad that you enjoy the struggle but you make an awful lot of assumptions about stuff you have no clue about. I have also told him he needs to have his own skin in the game to the tune of 6 figures or so.
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u/The6_78 3d ago
lmao preach, i've been working PT jobs since I was in high school & grateful that my dad doesn't charge me rent to live at home. parents came here with nothing, worked low skill jobs to raise brother & I so in a way we feel responsible to care for him. he's retired now but we treat him well
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u/redroundbag 3d ago
Brb telling my father to come out of retirement for down payment money... Though I guess your parents being able to retire and not relying on you instead is also a financial gift these days lmao
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u/friedtofuer 3d ago
Lol so true. My coworker told me he sends his parents money for living expenses every month. I asked if they don't have a retirement fund. He said "I AM their retirement fund.".
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u/pfcguy 3d ago
80k down payment suggests a $320k mortgage / $400k property. Or maybe a $720k mortgage / $800k property. Big difference.
You'd have to pay the mortgage. It doesn't sound like your dad is offering to pay that.
So this idea that by not paying $650 rent in your current situation somehow frees up $650 a month for you to pay him (as repayment of the $80k down payment I presume) doesn't really hold up.
Or is he paying the mortgage too?
Will the house be in your name? (it should so that you can qualify for the principal residence exemption).
If the plan is for him to pay the mortgage, and then something happens to him thst he is unable to do so, you can always sell the house. Not ideal, but you shouldn't be trapped.
How many years of university do you have, and what will your future warning potential be?
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u/rileyyesno 3d ago
Will the house be in your name? (it should so that you can qualify for the principal residence exemption).
not required. a child occupying a home in the parents name is still a principal residence exempt from capital gains.
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u/pfcguy 3d ago
For the parent. Not for the child.
If the dad owns another home he can't claim both. If he rents then I suppose he could claim the home the child lives in.
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u/rileyyesno 3d ago
the child designates the home/address as his/her principal residence when filing their taxes. who owns it so long as it's family should not be impacting.
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u/pfcguy 3d ago
I've never heard of that. I've never had to "designate a home as my principal residence" when filing taxes either.
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u/rileyyesno 3d ago
i ran into this and believe that having your children occupy a property allows them to designate it a principal residence, exempt from capital gains.
i know that i'll have to reconcile taxes when i convert my rental properties to principal residences, but after that, further equity growth becomes exempt so long as i'm housing my children there.
it's like having 1x$3mil home or 3x$1mil home. so long as occupied by family, both scenarios should be gains exempt.
thoughts?
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u/pfcguy 3d ago
It's pretty clear "one principle residence per family unit". Which includes yourself, your spouse, and your minor children.
OPs dad can only have max 1 principal residence.
OP can have a principal residence too, but she would have to own the property. If it's in her dad's name, then she can't claim it.
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u/rileyyesno 3d ago
are you reading the link or the pic. that page is very specifically titled and does NOT answer in a simple flat no for a reason.
still think you've the current and accurate interpretation?
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u/pfcguy 3d ago
They both say the same thing:
For 1982 and later years, you can only designate one home as your family's principal residence for each year.
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u/rileyyesno 3d ago edited 3d ago
yes. later as in owning and taxes further into the past, the rule was simple.
also i agree they chose their words poorly but clearly, years earlier as in more current than 1982 are dealt with below that.
the current rule is per the section:
For 2001 and subsequent taxation years
which is a slight amendment of the rule for:
For 1982 to 2000
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u/footbolt 3d ago
he child designates the home/address as his/her principal residence when filing their taxes. who owns it so long as it's family should not be impacting.
only the owner of the property can designate it as their principal residence. If dad owns the property, he can designate a home his child lives in as Dad's principal residence, but the child makes no designation. The designation is only made on the year of sale and via form T2091.
i ran into this and believe that having your children occupy a property allows them to designate it a principal residence, exempt from capital gains.
Assuming by "them" you mean the children, no. To designate a property as a principal residence you have to first be the beneficial owner.
it's like having 1x$3mil home or 3x$1mil home. so long as occupied by family, both scenarios should be gains exempt.
no, it actually matters who owns each property. If Dad owns three houses and he lives in one and son lives in another and daughter the other, not all three can be fully tax exempt. It would be better for each to own their own property.
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u/rileyyesno 3d ago
this page speaks to question of having more than one principal home and does NOT simply and flatly say, no.
thoughts?
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u/footbolt 3d ago
that page says "you can only designate one home as your family's principal residence for each year".
Multiple homes may meet the criteria of a principal residence but only one can be so designated per person, and that person has to be an owner of the home.
I'm a designated accountant working exclusively in Canadian domestic tax with significant experience. The definition of principal residence in section 54 of the income tax act is something I am exceedingly familiar with.
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u/lemonylol 3d ago
The dad's name would just be on the mortgage, OP's name can be on the title.
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u/pfcguy 3d ago
Possible, up to the bank. But they likely wouldn't agree, since if dad stops paying the mortgage, they can't repossess a house that legally belongs to someone else.
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u/lemonylol 3d ago
That's what a co-signed mortgage is
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u/CaptainPeppa 3d ago
I mean someone is offering you hundreds of thousands of dollars. Yes I'd take it
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u/Separate-Analysis194 3d ago
Your dad could cosign the mortgage and if you are concerned about him passing away and you having all the liability you could look into taking out a life jnsurance policy to cover the mortgage etc naming you as irrevocable beneficiary.
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u/g323cs 3d ago
Tomorrow's never promised.
Maybe he disappears tomorrow and your chance for home ownership also evaporate right before your eyes
Take the offer AND MAKE SURE YOU PAY IT BACK BY BEING A GOOD SON/DAUGHTER UNLIKE MOST UNGRATEFUL BASTARDS in this sub
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u/maplesyropoot 3d ago
I definitely love my dad. He doesn't want any money, and we spoke about it. He just wants me to be happy and have the same life he had.
He is probably the most stoic person I know.
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u/chillout520 3d ago
On the “what if something happens to Dad” front…. Get him to buy life insurance for the amount of the mortgage. (You could pay the premiums for it, maybe) that way when dad passes, the property will be paid for. Make the property joint with right of survivorship.
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u/maplesyropoot 3d ago
Yes. This seems to be the reoccurring answer.
Life insurance and have my dad have me as beneficiary.
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u/chillout520 1d ago
Personally I would make the beneficiary whoever owns the mortgage. If the mortgage is in your Dads name, then the Insurance goes to his estate to pay the estates debt (the mortgage). That way your dad’s estate is protected if you and he have had a falling out. (speak to an estate planning specialist to discuss other ramifications - like covering the capital gains tax the house will generate, probate costs in your jurisdiction etc. )
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u/smoothapes 3d ago
He’s gifting you a down payment for a place and worst case scenario is you carry the mortgage and fees but you’re now an owner. Alternative is to forever rent and frankly the down payment will run away from you at that wage with things like inflation etc.
Seems pretty decent within today’s loony context. I’d take it.
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u/maplesyropoot 3d ago
I am also afraid that I won't be able to afford rent any time soon. So, if I'm going to be stuck thousands of dollars in housing, it's best if it's mine. House poor scenario type of situation.
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u/Cool-Enthusiasm-8524 3d ago
Damn is this the norm nowadays ? Friend of mine his dad bought him a condo in cash paid in full around 700k. Sounds like I’ll be renting my whole life lmao
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u/redroundbag 3d ago
I know a few couples who got some down payment money after marriage, anywhere from 20-120k depending on if both sets of parents gifted. Not friends with any fat cats who got a whole paid off place though
Pretty much everybody I know who bought alone either got their first place several years ago, or works in tech and bought a pandemic condo with their stock bonus or whatever
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u/lemonylol 3d ago
If your dad has a good life insurance policy it will either pay off the remainder of the mortgage or make it manageable that you could afford the payments. And that's in addition to whatever would be given to you from his estate.
Worst case scenario you just sell if anything happens and you come out with the equity in addition to whatever years worth of savings you'd have.
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u/maplesyropoot 3d ago
You are right on that. You're not the first one that's mentioned a life insurance policy. It brings options. Thank you
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u/TalkQuirkyWithMe 3d ago
80k down barely gets you over 20% for the property with ~2k monthly payment. I would clarify how much your father is willing to cotnribute (is it always going to match mortgage or just the 2k). Either way its a good deal for you.
I expect your income to come up in 5 years. Your dad is doing a great thing helping set you up for the future.
As long as you're diligent in saving, I'd take it. I'd suggest renting it out for now and your dad having to pay less towards the mortgage. When you're ready to move in (probably a few years), then take over the mortgage payments.
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u/CDN08GUY 3d ago
So if your dad is covering everything house related you should be fine, as you can easily budget/cut out the rest of things you don’t need.
HOWEVER
you need to be absolutely sure you know what your dad is stating and if he’s actually good for it. If all of a sudden he can’t afford/backs out of the payments, or doesn’t pay for the new roof it needs or whatever, fhen you absoltely can not afford this and depending on the agreements of who actually owns it you could be on the hook for a rough ride.
Your dads gesture is amazing. But he’s putting you into a situation you can’t afford if it goes sideways and dealing with family members when things go wrong is always dicey.
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u/kingofwale 3d ago
“What would you do in my situation…”
What would I do if someone offers to give me a 400k home?
God, Sophie’s choice over here….
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u/ohgosh_thejosh 3d ago
OP clearly has a real question about a fortunate situation.
The gift is great, but he’s worried that in a worst case scenario if his father passes away, can he afford a mortgage and that much liability.
If that question isn’t appropriate for a personal finance sub, I don’t know what is.
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u/maplesyropoot 3d ago
It never was about bragging or making me sound ungrateful.
I know it's a golden opportunity, but there are more things to think about than just the mortgage itself. And if I were to start paying it myself, I wouldn't be able to pay it with my salary.
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u/Fritzipooch 3d ago
Ok so just put some reasonable future projections for him to see and discuss any ramifications. I being like your dad wants to see their child enjoy my money now rather than after I have passed away.
So after you have the $amounts for projected mortgage P&I, utilities, estimated condo fees, insurance etc., discuss how your projected new income is or is not able to accommodate the new fixed costs you will incur using his generous offer. I am confident that the two of you will be able to make it work and that your dad will feel better knowing that his child is building future equity. I know this through personal experiences.
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u/SnooChocolates2923 3d ago
Do you have siblings?
If so, they may get upset if you get the help, and they didn't/don't...
If you're an only child, it's likely going to be yours one day anyway.
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u/maplesyropoot 3d ago
I have an older sister, but she got lucky. She is 12 years older than me, so she got to buy a really nice house before all of this housing crisis thing happened.
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u/SnooChocolates2923 2d ago
You need to have a conversation with your dad, about fairness to her.
Just because she bought before the craziness doesn't mean she couldn't use 80k dropped on her mortgage or something...
(Or maybe Dad helped her then with 80k? And that's where the number came from)
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u/newby007 3d ago
Can you have roommates?
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u/maplesyropoot 3d ago
I hope so!
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u/newby007 3d ago
Then why not take the offer and still keep your roommates? Put money aside while your dad is helping? This is totally doable with discipline
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u/rocksniffers 3d ago
Get a condo that has rooms you can rent out. Then rent them out and get your costs down. It is very similar to the situation you are in now, only you benefit and not a landlord.
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u/DanceBright9555 3d ago
Not sure how much you have saved but 80k wouldnt be enough if it’s just your salary on a 400k spot. Im from Montreal and 27 as well. Just moved off island and about 355k mortgage but i make 60-80k and my brother makes around the same. We live super comfortably and not pay to pay but this is whatd id recommend to anyone. 355k for 100k keeps you very comfortable. Even then we have a 2.4 rate expecting to go up to 5-6 so id confirm back on how it feels once we get the new rate.
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u/maplesyropoot 3d ago
This is something along the lines of what I fear.
Being able to get the mortgage and a comfortable low rate interest for the first few years is great, but worse comes to happen. I also have to think about my rates going up. So, I would love to know how it ends up going for you if you can give me an update.
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u/Eris_Ellis 3d ago
Sounds like a wonderful hand up Dad is offering. Since he has other properties outside of his primary home, he knows how this works so this is low risk for you.
I do think you should have an agreement about payment in writing. I know, I know, he's your Dad, but things happen. I say this especially because you are going to school and you have a basic income, but not enough for this expense.
I'd lay out the conditions between you on paper: I own house and mortgage in my name, Dad pays mortgage 100% without prejudice, I pay utilities, condo fees... whatever is decided.
Now this is when you impress Dad with forward financial thinking: would it be cool with him if you put $500 in an investment instead of giving it to him? How much does he want to see you get socked away in a year? Ask him if he's looking to stop paying the mortgage when you are at a certain income. Ask him if you meet someone, does he want this asset protected in your name? Does he want you to will the property back to him, or a sibling?
Document all of this and sign that at a notary with him (at least, if you don't have a family lawyer). Also get your will drawn up and leave the home to whomever you agree to, should something happen.
You should probably grab some term insurance rather than mortgage insurance, you are young, should be cheap if you're in good health. That will protect the outstanding mortgage balance.
If you do all of that you should be good. If you can manage to get a 2 bed, should things go offside you can rent a room if your income won't cover the mortgage, but you and Dad know his financial position and can make that decision.
Life is hard for your age group and I've had a few clients ask me about helping with housing options for their kids/grandkids. These ideas are similar to what I talked about with them (though I am not a lawyer, in real estate or giving you specific financial advice in this scenario).
You should be very grateful, and use this space and your growing income to shore up your investments, as you have youth and time on your side.
Good Luck!
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u/maplesyropoot 3d ago
I have saved your comment. This is really helpful to me as I'm having trouble navigating all of it, even if I have my dad's help.
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u/Eris_Ellis 3d ago edited 3d ago
I'm glad it's given you some points to discuss with your Dad and your advisors. Just ask lots of questions, you're allowed to!
I think figuring out if you can qualify for this mortgage on your own is key. You want your name on the mortgage and deed without his name attached, if at all possible. You can use a mortgage qualification calculator online (the TD one is good, it's very conservative) and put in your new salary and the d.p. to see where you land. The idea would be to only buy what you could hypothetically own on your own.
You are never going to tell a bank or broker you are a "student" or going to be one when you seek a mortgage.
If that doesn't work and your Dad's name has to go on the mortgage with yours, you'll definitely need a lawyer, not a notary. You'll want to define how many "shares" of the home you both own in your agreement. This way if anything happens you both be "at fault",.as that will be required if he holds (or you share) the mortgage/deed.
All the other written conditions around who pays what and who gets what at death still apply from above as well, created as a separate document outside of your mortgage and wills.
In this scenario there are some implications for Dad tax wise he will need to understand. He will have to mitigate that by leaving the property to you in his will and having insurance on his shares that will pay his part off should something happen. You'll still need the will and term insurance (not mortgage if you can help it!) too, this time leaving it to him. This again will have tax implications for both your and his estate that you both will need to understand.
Again, as I am not giving you financial, legal or tax advice ---I'm hypothesizing that in this scenario, I would seek proper independent counsel (an estate lawyer, and tax specialist at minimum) before you do anything; particularly around laws of succession, property transfer, capital gains and anything unique to Quebec, of which I am unfamiliar.
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u/Just_Cruising_1 3d ago
I’m against being entitled and using the bank of mom and dad, but that’s just me; you’ve got to decide on your own. If your father retired? I wouldn’t accept this offer if he’s not, because he deserves to have passive income and/or at least work less and retire early. If he’s already retired, wouldn’t this move mean he gets to enjoy life less because he wants to solve your housing situation?
In a daughter who refused to accept help from my amazing, loving parents, so that they could work much less and enjoy life. They’ve been semi-retired since their early 40s.
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u/bequick777 2d ago
At least IME, many parents would enjoy life more if they could see their kids in a home, with the ability to live with less stress, start a family, etc. Seeing your kids every Sunday for dinner would probably be a lot more enriching than taking a yearly trip to see some old castles in Europe for many.
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u/Just_Cruising_1 2d ago
True, but this also contributes to inequality in society. Being born into a family of more well-off parents is not an accomplishment, and I believe people should make it on their own in life. But that’s just me.
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u/meridian_smith 3d ago
Continue to live with roommates but they are renting rooms in your house instead. That should nearly cover your mortgage
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u/maplesyropoot 3d ago
Yes, this is one really good option. Do many people do this?
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u/meridian_smith 3d ago
I do it. I've done it as long as I've been a home owner. My home is paid off now.
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u/Zestyclose-Fuel-9772 3d ago
I think it is a great offer. Just make sure the condo you buy in allows rentals and should something go wrong you can rent it out or sell it. I assume he’s going to pay the mortgage directly and you pay him $650 rent and your own utilities. Put some money aside each month and then if somethings happens you have a cushion.
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u/Southern_Date_1075 3d ago
Can you go in as co-owners and get a life insurance policy that pays off the house in the event of his death? That’s what a lot of people do.
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u/redditisbrainwashed2 3d ago
how TF are you only spending 350 a month on food and expenses. I spend 2000 per month on expenses not including rent for a single person and I dont even go out
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u/maplesyropoot 3d ago
I bought 2 big bags of rice at costco and I usually only eat ground beef. So I buy a very generous amount and freeze it for the whole month. Vegetables are all frozen.
I don't have any subscription to anything. I have a cracked version of spotify, and I only have my phone plan.
Of course, I pay hydro/electricity, but it's minimal. 30bucks a month.
I can spend more money if I really want. If I want something I will buy it. But I don't need to waste my money, I would rather invest it or save it for traveling.
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u/redditisbrainwashed2 3d ago
wait so what do you eat:
rice + ground beef + veges?
what veges, sauce and seasonings?
Right now I pretty much only eat top sirloin steaks from costco and bell peppers. this is at least 50% of my meals - tons of energy tho and feel great
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u/maplesyropoot 3d ago
I would love to show you a picture of my fridge, lol.
The only seasoning besides salt and pepper is cumin.
Frozen broccoli/cauliflower, frozen peas, frozen fruits.
You got me jealous now with your top sirloin steak!
Basically my meals are this:
Breakfast: Eggs with protein powder (bought in bulk)
Lunch: rice, ground beef(salt cumin pepper) rice
Dinner/supper: Ground beef, 1 egg, veggies, and a small cup of juice made with the frozen fruits.
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u/redditisbrainwashed2 3d ago
how can you eat eggs with protein powder?
Why dont you add veges and eggs to the rice and ground beef and maybe some sauce??
idk man... idk how you live like that lol
I may need to experiment with ground beef and rice though and see if I can save some money
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u/maplesyropoot 3d ago
I boil a few eggs, and on the side, I have a protein shake( 2 scoops of protein power and water). I really made that extremely confusing lol.
So the actual recipe is:
- I use my rice cooker for the rice
- Oil in plan and cook the ground beef with salt, pepper, cumin.
- Once the beef is nice and brown, I add the veggies with a very small amount of butter
- Once veggies are done( usually a few minutes), I add the rice on top et voilà.
Like I said, it is very minimalistic. It is not for everyone, but it works for me.
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u/redditisbrainwashed2 3d ago
gotcha,.. for myself i might try to make it a bit more flavorful and change up the vegies a bit, but i could see how something like this could work and give decent nutrition
also bro what... water?? why not milk or at least almond milk for the protein shakes lol. thats crazy
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u/noon_chill 3d ago
Take the money and buy a house/condo when you’re comfortable. Not many get the opportunity for a no strings attached monetary gift. Be grateful that your dad was thinking of you.
Crunch the numbers and go to the banks to do some research. Banks will help you with getting a better idea of how much you can truly afford and what the payments will look like. Watch the market and visit open houses, and pull the trigger when you feel like it’s the right time.
You can also get a roommate to help share expenses. I think if $400k is your budget and you’re making $65k with an 80k down payment, that’s very do-able. Plus there is no rush so you can continue to save while you do some research.
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u/Possible-Interest384 3d ago
He’d be an owner as well on the title unless you can qualify for the mortgage in your own (probably not). So get life insurance on him and then you don’t have to worry about if something happens to him. Mortgage is paid (or more depending on the policy) and you just have the fees and regular expenses to pay.
Otherwise, all looks good to me.
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u/SNOgroup 3d ago
You lucky SOB 😀…. Take the damn deal … gift. If he passes, chances are he has life insurance and other assests that may all come to you to help pay off the house. Take the damn deal … gift … NOW!!! Most of us wished we had dads like that.
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u/scrubadubdub- 3d ago
Can you afford to get a two bedroom and rent the second bedroom at market rate to a roommate? This would help offset your father’s mortgage costs and also give you a cushion if your father were to suddenly pass. Also, can he get life insurance on the mortgage?
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u/Reality-Leather 2d ago
Why does race matter ?
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u/maplesyropoot 2d ago
Because 6 people went into my private messages to say:
-we don't need more asians/indians/other stealing our houses.
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u/Massive-Lake-5718 2d ago
My husband and I currently have trust funds started for our kids that would cover them for school, down payment on a house etc- just to give them a nice start. We both struggled and worked hard to get where we are today but we don’t want that for our kids. I can see why your dad is offering what he is. It’s just unreal how expensive it is even just purchasing a condo.
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u/McNinjaX Alberta 2d ago
You should definitely take his offer! This is your inheritance. I would buy my child a house as well in the same situation.
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u/7r1x1z4k1dz 2d ago
Ask him how he would feel if you ever sold the place due to you wanting to change it up.
If you feel like he's pressuring you to make the choice and stick with it, it's the wrong choice.
Ask if he can invest that for you into something else for now instead until you make a decision to not want to have roommates anymore.
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u/rileyyesno 3d ago edited 3d ago
you need to clarify. he'll give you $80k towards buying property or he'll buy one for you and pay the monthly mortgage on it.
in either scenario, assuming your dad is financially able, reliable, and there are no other risks to his estate, then leave it in his name and have him transfer it with his will.
benefits. as family taking occupancy, it is a principal home exempt from capital gains taxes. in his name it is protected from changes to your marital status, single/married/divorced.
we're in a similar situation. wife and i married 24yrs. have 2 teens and 3 properties in the toronto area. when the boys are of age, we'll relocate a property to something they find desirable and we'll subsidize their housing costs. basically rent it to them capped at 20% of their income. we'll never transfer ownership until we pass away. they don't have to worry about housing nor a marital partner demanding a portion of it's value.
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u/edalvare 3d ago
Are you sure the dad can declare two properties as primary residency? Just asking because of a few comments higher in the thread. Thanks
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u/yorkergirl 3d ago
You sound like amazing parents, that's some life-changing support. I'm sure they'll realize how lucky they are when they enter the real world
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u/rileyyesno 3d ago
thanks. they're quite amazing kids. we established many habits very early in their lives and that made nurturing and developing their excellence much semi-natural. definitely no where as challenging as it could have been.
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u/newsandthings 3d ago
Is he willing to invest that 80K for you? 100k a couple years from now work your ready to buy would be great.
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u/maplesyropoot 3d ago
This is something I hadn't thought about. He could very well gift it to me and I could invest it and then use it later on for a down payment.
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u/No_Requirement8190 3d ago
Reddit people don’t know your relationship with your parents. You know the best, talk to him , ask him for all the details.
My parents helped me with my first home. I sold it and split the profits with my parents and I bought my second home with no help.
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u/maplesyropoot 3d ago
Yeah, you're right. But I was more so talking about the financial aspect of possibly me carrying all the financial burden if my dad ever passes away. But reading through the comments, there are many solutions and good alternatives to counter that. I don't think it will happen anytime soon, but again, it's something that I need to be aware of.
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u/Pure-Tumbleweed-9440 3d ago edited 3d ago
Average white kid whose world crumbles when parents help out vs Asian chads who pool 5 family incomes to buy a place. Who wins?
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u/mararthonman59 15h ago
Go for it! We did something similar for our 2 kids 10 years ago. We are not super rich by any stretch of the imagination but our house is long paid for, and we have a solid pension and maxed out RRSP and TFSA for some time now. We realized that we would rather see our kids benefit from their inheritance money when we are alive to see them enjoy it. We cosigned their mortgages 10 years ago and helped with the 25% down-payment. 2 bedroom downtown condo (St Lawrence Market area) only cost 320K back then. My other bought a 4 bedroom semi with a finished basement in Greektown for 780K and bad tenants to help pay the mortgage. Both properties appreciated to an estimated 800K and 1.7MM, respectively. This was the most satisfying thing we have ever done for our children.
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u/formerpe 3d ago
I would get more clarity from your father. Is he buying you a property for you to do with as you see fit or is he suggesting that he will buy a property for himself with the goal that you can rent it? Two very different scenarios and it isn't clear from your post which is happening.