You want the social repercussions? I imagine you will have a much harder time making friends, to say nothing of a significant other, and will in fact be quite lonely.
I say this, because I know people that did exactly what you did, and even their high school/college friends don’t want to hang out with them anymore. Because they, like the people they want to be friends with, are adults and act like it.
EDIT: not to mention your bizarre “No, I make plenty of money in the stock market and have huge savings…wait actually spend that money when I could mooch? are you crazy? What about social consequences?” The social consequences are nobody likes a miser.
Seriously, these Boomers really expect young people to have it a lot worse than them. Foxy40, I don’t even dream about owning a car. Where will I find that extra $10k per year? Insurance, gas, and parking have really gone up since your times. A transit pass with the tax deductions only costs $1k per year. The older generation trying to force their ideals is not going to work. You grew up in a time when there was NO sales tax in most places, now it’s 13% here! You probably didn’t even have land transfer taxes. How is buying a “starter” home a good idea if I need at minimum $100k down payment on a cheap $350k town house and then lose another $40k when upgrading due to agent commissions and land transfer tax? Is having a girlfriend but not being able to ever raise a family in a $500k 2-bedroom apartment your idea of independence?
It’s obvious that you’ve considered the financial impact to yourself and prioritized your financial goals above those related to your own personal growth and development as a young independent adult making your way in an uncertain world.
You obviously have a safety net in place (your parents) so you wish to avoid as much risk and personal discomfort as you can. To some extent, it’s understandable to be tempted in this way.
But what I mostly hear you asking is: How little can I get away with paying for my room and board so that I can maximize my own financial worth and will people think less of me for seeking the easy way out?
I am going to jump on the bandwagon here and say you are nuts if you have 50k and don’t think that’s enough for a downpayment in (or near) Toronto. Plenty of places to get.
However, if I were you and just finished college, I would rent/buy an apartment. There should be something that fits your needs and certainly your income.
If you WANT to live with your folks, you need to pay your way somehow. For some parents, that’s cash money. For some, it’s housework and home maintenance. If you just let your parents continue to take care of you, that’s just not a good movement forward.
And you asked how you buy a house while only saving 1-2 a year? The same way that I did it and my parents did it and my grandparents did it. We worked hard, spent little on anything fun and made the 1-2 k more. AND we couldn’t afford a house until we were in our 30s or 40s. And even then, we all put down as little as was legal at the time to do it. (Which, btw, is 5% in canada).
What boomers? I’m 28, I started out with less, and am quite content with less. You have unreasonable expectations of what you need to rent a place, or buy a house, and are trying to use those as justification for mooching of your parents. Despite being told all of this, you’re still surprised when the rest of the dope is disgusted by your plans.
Don’t complain about the boomers when people from your generation are following exactly the advice given above.
You have $50K in the bank, you can afford a car. You can afford a lot of things. Sorry, but your posts make you sound spoiled. Go get a job, any job, live hand to mouth for a while, gain some perspective. Where did you get the idea that life was easy?
You should take some business courses. $1k is the cost to maintain (think repairs and maintenance) and pay property taxes for the two-bedroom place per month. People who rent out their places charge more than costs as they want to make a little money or pay off part of the mortgage. $15k/year which is about $1,250 per month is the minimum it costs to rent a small one-bedroom flat of a similar standard. $12k is the minimum rent for any place in Toronto where you could expect to get to work without taking most of your day. $10k is just the income tax on a $50k income here. With payroll deductions of another $3k, you’re getting $37k or less. As well, I said up to 50%; a worst-case scenario. No one is going to guarantee you that $50k starting job. In fact, I’m having trouble finding better summer employment this year even though I have stellar grades and a lot of intern experience
You may eventually be an adult when you quit relying upon your parents and take full responsibility for you life, and the costs of that life.
How much financial responsibility did you contribute to your education? Paid for it all yourself did you? Or was the money you saved made possible because your parents paid that bill too?
You come across as overly entitled, spoiled used to be the word, and no one is going to find respect for you until you accept the responsibility for your life, that you can clearly afford.
Dude, you are not doing yourself any favors by moving back in with your parents. At some point you’re going to have to become an adult. You clearly have the means to strike out on your own. You’re not entitled to a certain standard of living simply because you want it.
The norm is kinda dependent on the needs/minuses/pluses of the child and the willingness of the Parents to help.
You do realize that having 50k in savings puts you way above virtually everyone in your age group? You seem to be suggesting this 50k is self made. If this is true - I think that would put you in the 99th percentile.
The type of self sacrifice, ingenuity, and talent required for a kid fresh out of college to have that type of head start is just totally at odds with someone who wants to move back in with their parents.
If it was your average kid - I’d say the people here are bing a little harsh - if a parent wants to help subsidize their Child’s savings - so be it. And hey, if your parents are totally aware with your financial situation and HONESTLY want to support you - then fine - it is a free country (in Canada too!). You are way above average in terms of alleged nest egg building. I think most people don’t believe you could possibly have built up that type of nest egg WHILE paying all your own expenses - even using your numbers. So it is a little hard to move on when it appears that you don’t see the effect others have had in helping you out. Moving on…
Some women will have an issue with you living with your parents, not all.
Common sense and politeness says you should pay your parents something. If they want to turn you down - so be it. There is no norm for what you should pay your parents in your situation - cause if what you say is true - I’m pretty sure that you are at least in the 97th percentile - and as I said - I think higher for your age. Of the 1-3% of kids with your type of head start leaving college - I’m guessing that only 5% would consider moving back with their parents. That is being generous.
So in other words - I think less than 1 in 2000 people are in your situation.
I am also broke (since I am getting a divorce) and buying a new house. A 1500 sq. foot townhouse in Burlington (that’s 40 minutes from Toronto) for 225. I am paying 5% down so 11250.
If I worked in Toronto (which I thankfully don’t) and didn’t have a car, I have every amenity across the street (grocery, clothes, pharmacy, etc.) and the GO Train is about a kilometer walk away. Monthly pass is 350 which includes TTC.
Granted, it would mean commuting but that’s the price you pay.
You are living in a dream world if you think anyone in this country puts down 100k. Also, buying your ‘dream home’ when you are single if you don’t always plan to be such is just plain stupid. It won’t be her dream home, I promise.
Graduated University 13 years ago with no debt and (if it weren’t for splitting with my ex), we had a fine house with about 200k in equity (between it and RRSPs etc) and were raising two kids.
I predict that our new friend VeroTrem will not be with us very long. I also think that rather than live with his parents he should just go ahead and live under a bridge.
Asking about embarrassment is only asking other people how they would feel. Apparently most of the people replying here would be embarrassed. Or even livid - some can’t stand their parents. Or adults, or something.
But, would you be embarrassed? Ask yourself, not others. If it’s not embarrassing, then stay home. Whatevs. If you like your parents and they like you and everything is copacetic, and you like the idea of hanging out and saving money then do it.
If your parents want rent and you are willing to pay it, then pay it. If not, then move out.
I lived at home until I was 25 (with my older brother, too) while I established my own business. We all lived like roommates. I bought a lot of my own food and did my own laundry. I didn’t pay rent but my brother and I did pretty much whatever we were asked to do chores-wise. We didn’t have curfews or whatever, but I did keep in touch about my comings and goings once I got a dog. I felt it was only fair.
I dated a ton, and just always hung out at the guy’s house. What’s wrong with that? I don’t think any of them thought it was inconvenient that they never had to drive out here. My family only met the guys a handful of times.
When I became totally sick of living with my parents, I set some money goals and reached them within a year and moved out into a home I bought myself.
You decide for yourself, man. No one here is going to be as intimate with your feelings towards the entire situation as you are.
This is not a thread about people trying to get me to be fiscally irresponsible and cause another financial meltdown. Most Canadians don’t even have $10k in the bank, I don’t aspire to be so broke. How can I afford a car and an apartment on a starting salary of $50k? Insurance for young drivers is about $6k a year even before you count in lease payments, parking, and fuel costs. If I have a net salary if $37k per year, I’d have 0 to negative net savings with all that even with low personal spending. I haven’t even taken a vacation in three years. $50k is barely enough for a down payment for anything in Toronto. 5% is the minimum, but the interest rate will be huge with the default insurance included. 30% is the minimum level for a young person to get a 6.25% 10-year mortgage. Even at those rates, the mortgage will cost more than rent… Most of the world isn’t as reckless as the US. Just wait until interest rates rise before you take out that mortgage and have no savings. Even in wealthy places like Austria, nearly a quarter of grads move back in. http://www.spiegel.de/international/europe/bild-877616-447811.html
It’s not like I mind my parents, I’m usually out of the house when I’m there. Even if you’re so against fiscal responsibility, what would be a reasonable rate to pay? I’m assume half of the costs is reasonable, so $500/month. You might think that someone planning for the future is pathetic, but more pathetic is probably a 40-year old with less cash than a 25-year old.
You need to stop defining your life by how much money you have. You’re paying far too much attention to long-term goals. I’m a long-term goal gal myself, but you seriously need to take a risk now and live in the world a little, or you’ll end up living in a mentality that will make you fearful at age 30 of having enough money for retirement, a point in time where you really do not have to worry that much.
You have $50,000 dollars. That is a gigantic safety net for your age. Enormous. As soon as you have a job, that money will be sitting right where you left it because you should be living a lifestyle that fits your job. You’ll have a couple years to test the markets where you get an apartment and decide if you need to go elsewhere or keep trying to move up the pay ladder where you are. It’s reasonable enough to stay at your parents’ house and pull your weight until you have a job. After that, you should be getting out.
The fact that you quote your stock market funds and accountant friends who expected to make 80K right out of college kind of makes me snort. You gotta wake up and really see the world.
You get all upset over “how can the boomber’s expect me to…” when you’re the one sitting there saying “But I need THAT house, I won’t settle for ANYTHING less than a $700K house in THIS neighborhood, nowhere else, nothing else!” Expecting to own a big fancy expensive house so early is the epitome of the boomer mindset.
For the record, I’m 26, and I think I’ve lived a pretty cushy life myself because I’ve never had to choose between food, gas, or rent, like a lot of people. I always had at least $500 in the bank, and that’s pretty damn good. You’re not “broke” unless you have to make the food/gas/rent decision.
That should be clear by now. What everybody in this thread has said, is what people IRL will think of you if you’re still living with your parents when its seems obvious to everyone else that you could afford not to.
Yeah the very first thoughts that enter my head are: Entitled middle-class kid who needs to grow up. I wouldn’t want to have anything to do with him in real life. Sounds like he has no interests beyond saving money.
You don’t have to have 100k in the bank at age 23 to be making responsible fiscal decisions for your future.