Average Toronto detached on a millionaire budget

The average price of a Toronto detached home hit an all-time high in February, at a mind-boggling $1,040,018 – up 8.9 per cent year over year, according to the Toronto Real Estate Board‘s figures released earlier this week.This means that in order to qualify for a conventional mortgage on your average single-detached digs in the 416, your down payment will run more than $200,000. Ouch!These latest TREB figures only confirm what we already know: Toronto real estate is expensive, so much so, that homebuyers are moving up and out to make ends meet. Translation: condos and suburbs are gaining speed.white picket fenceBut the 905 isn’t too far behind its 416 counterpart, with detached prices up 8.5 per cent over Feb. 2014 to an average of $694,285. While that’s more palatable, it’s still hard to swallow for many homebuyers – especially first-timers with white-picket-fence dreams.For those who aren’t willing to compromise on their three-bedroom, backyard ideals, Paul A. Golini Jr., co-founder and executive vice-president of industry relations at Empire, let us in on an old industry saying: You drive until you qualify, “and will continue doing so if it means you’ll have a bigger house or lot.”On the other hand, if you prioritize location over lot size, February saw a narrowing gap between condos in the 416 and 905, with prices averaging $369,655 and $322,055, respectively. So, what about that $47,600 price differential?pedestriansA recent study by Pembina Institute and RBC, Location Matters: Factoring location costs into homebuying decisions, explored location-related costs and how these affect the bottom line of homeownership, beyond sticker price. While walkable neighbourhoods are typically more expensive at first glance, Pembina and RBC crunched the numbers and found that residents spend on average $10,000 a year on car ownership. Keep the downtown property for five years, and put those car costs toward your mortgage, and perhaps you can have your cake and eat it, too.RELATED READING:Beyond sticker price: What’s the real bottom lineCity or suburbs: The costs are more similar than you thinkTrends in lowrise homes in the GTA

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