How much do you pay in rent/mortgage?

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musicmonkey
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How much do you pay in rent/mortgage?

Unread postby musicmonkey » Sat Oct 13, 2007 5:08 pm

Last year my rent went up from $760 to $790 (a $30 increase). Yesterday I got another rent increase notice for $32 (4%) that will make my rent $822 starting February 2008. That's $62 in only two years. I think I'm going to be forced to move if this continues. I moved into my apartment around 1992 or 1993 and it was $660 back then. I only had a rent increase every 4 years back then but now it looks like it is annual.

apartmentguide.ca wrote:- allowable rent increase for residential tenancy in 2006 is 4.0%
- 3-month written notice of a rent increase is required
- rent can only be increased once in a twelve month period


How much do you pay in rent/mortgage (and/or strata fees, etc. if you own)?

neilinphilly
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Re: How much do you pay in rent/mortgage?

Unread postby neilinphilly » Mon Oct 15, 2007 8:00 pm

musicmonkey wrote:Last year my rent went up from $760 to $790 (a $30 increase). Yesterday I got another rent increase notice for $32 (4%) that will make my rent $822 starting February 2008. That's $62 in only two years. I think I'm going to be forced to move if this continues. I moved into my apartment around 1992 or 1993 and it was $660 back then. I only had a rent increase every 4 years back then but now it looks like it is annual.

apartmentguide.ca wrote:- allowable rent increase for residential tenancy in 2006 is 4.0%
- 3-month written notice of a rent increase is required
- rent can only be increased once in a twelve month period


How much do you pay in rent/mortgage (and/or strata fees, etc. if you own)?


Compared to Philly, your rent seems very reasonable.

My monthly house related expenses are:

Mortgage - $1520
Taxes - $82
Homeowner's Insurance - $101.50
Total - $1703.50
Less "rental" income - ($500)
Net - $1203.50

Since there are varying factors, it's difficult to compare as you would need to normalize renting vs. buying to make all things equal. A homeowner in the US gets a tax deduction on mortgage interest and other incentives. But also there are routine and emergency maintenance as well as improvements/upgrades. And a house value can either appreciate, depreciate or remain flat. So to equalize it, you'd hafta amoritize both over the same time period, e.g. five years, 10 years, etc., or compare the cost per square foot.

Why don't you look for a roommate, either to move in with you or you with him (her)?

musicmonkey
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Re: How much do you pay in rent/mortgage?

Unread postby musicmonkey » Mon Oct 15, 2007 8:35 pm

neilinphilly wrote:Why don't you look for a roommate, either to move in with you or you with him (her)?


A number of reasons. I only have a 1br apartment and am not looking to move. I have been here for so long and have too much stuff. I need to do some major purging. Also, with roommates, they can be fickle and I don't want to be in a situation where they just leave suddenly and you're stuck paying the bill for a 2br. Maybe eventually if and when I buy... but with real estate prices soaring, I don't see that happening anytime soon unless I move to the burbs (which ain't happening because I don't have a car and couldn't survive the commute).

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Re: How much do you pay in rent/mortgage?

Unread postby funguy » Tue Oct 16, 2007 7:11 am

musicmonkey wrote:How much do you pay in rent/mortgage (and/or strata fees, etc. if you own)?


the total mortgage on my old house -- 2 br 2ba 830 sq ft + partially finished basement -- was about what patchy is paying now in rent. my current mortgage -- 3 br 3 1/2 ba 2000 sq ft + mostly finished basement -- is about $200 less than what neil is paying. note that for both of these the property taxes and bank loan interest were/are deductible from my income taxes, which brings the true cost down some more.

i ran a quick spreadsheet on your rent, patchboy. starting at $660/month in 1993 (which is about $150 more than i was paying for my 1 br 1 ba apt in 1993) and factoring in annual cost-of-living adjustments, i get the following current (2007) rents:

2% annual - $871
3% annual - $998
4% annual - $1143

i'm guessing your rental market is heating up as more potential buyers are backing away from purchasing homes.

musicmonkey
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Re: How much do you pay in rent/mortgage?

Unread postby musicmonkey » Tue Oct 16, 2007 2:59 pm

funguy wrote:i'm guessing your rental market is heating up as more potential buyers are backing away from purchasing homes.


Condominiums are definitely on the rise here. There's many factors, our economy is doing well, our population is rising both from immigration and inter-migration from other provinces, etc. Housing in the burbs is soaring too. I know this teacher here whose house is increasing by $10,000 per month in value. Plus Winter Olympics 2010 is another factor. People who don't already own here are pretty much SOL. Oh, and my building was renovated on the outside last year. A friend of mine sold her 1br downtown condo recently and with the money she made she's building a brand new big house in small town Saskatchewan.


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