You earn $ 75,000 a year. Do you ever want to afford a Toronto house?

Owning a home in Toronto is a dream come true for thousands of people who continue to feel more and more out of reach.

With the average price of a Toronto house now over $ 1 million, many discouraged people on the sidelines wonder if the dream will ever come true.

This week, CTV News Toronto financial commentator Patricia Lovett-Reid asked if it will ever be possible to own a home in Toronto if you are a single income earner earning about $ 75,000.

Lovett-Reid says the “harsh reality” is no.

“At $ 75,000 a year in Toronto, that’s not going to happen,” Lovett-Reid said. “Unless you really get financial help from your parents.”

She said that even if you are able to find enough money for the payout, people who earn about $ 75,000 a year will struggle to make ends meet in everyday life.

House for sale

Between paying off mortgages and service fees, Lovett-Reid said you simply “can’t figure it out.”

She estimates that in order to comfortably pay all the fees associated with a $ 1 million house, you need to have about $ 200,000 in income per year.

Lovett-Reid said it may be an option to buy a “very small” apartment, but with $ 75,000 a year, it will still be a stretch.

So what should you do?

Lovett-Reid said it’s all about compromise.

“You can’t have it all at once,” she said.

For people who are willing to buy a home, Lovett-Reid suggests continuing to save aggressively while also seeking to buy in areas outside the city.

“Be prepared to know what you want to do and will not do,” she said. “Are you ready to commute? If so, well. Look for a seat on a commuter line.”

And for those who are not willing to leave the city? Lovett-Reid said people should not be deterred.

“There’s nothing wrong with renting,” she said. “There’s nothing wrong with saying ‘This imbalance in the market means I’m staying on the sidelines’.”

“I think it’s an old paradigm where a right to enter adulthood means owning a home. It does not. That’s just not the reality today’s millennials are facing. “

A CIBC report, released last month, showed that Canadian parents give their children record amounts. money to buy housing.

First-time home buyers received an average of $ 82,000 to help with their payout, the report said.

According to the Toronto Regional Real Estate Board, the average price of a detached house sold in the city in September was $ 1.7 million.

The average for a semi-detached house sold was $ 1.3 million, while a townhouse was $ 930,000.

The average selling price of a condo in September was $ 744,730.

Do you have a financial question or topic that you would like Pattie Lovett-Reid to discuss? Email torontotips@bellmedia.ca.

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