We’ve all probably heard that living in the suburbs is an inherently better choice because it offers a lower cost of living. However, the truth is that although living in the city can feel like a money suck, there are some benefits of city living that keep your money where you want it: your pockets. Jobs are close by, transit is easy and cheap, lawn-care is a not a factor and depending on where you live, suburban property taxes can have you clenching your wallet.
The idea of moving from a two-bedroom apartment to a two-storey home can be extremely appealing, but before you take on the responsibility of home-ownership and the long-commutes, here are some questions to consider.
Will you need to buy a car or two? According the Globe and Mail “in dollar terms, a commute to Toronto from Hamilton will add approximately $3,500 annually to your household budget. Not including gas, car maintenance, insurance and parking.” If two adults are commuting by car each day, is suburban living really proving to be a cost advantage?
According to the Globe and Mail, prices in the suburbs are still one-third less than Toronto on average for detached homes, but those prices are steadily increasing. When you add in the price to commute, utilities, insurance, an emergency fund and property taxes, the question is whether or not you’re saving that much by moving to the suburbs.
What are the property taxes in the area you’re moving into? According to its 2016 Municipal Study, BMA Management Consulting Inc. reports Orangeville’s residential households are paying more in property taxes than most of the 105 other Ontario municipalities.
How much will you be spending to furnish your two-storey home? Don’t forget that yard space you now have to consider, landscaping or a play-set for the kids to enjoy, while some of it can be a one-time cost, there are some reoccurring fees if you want to consider like hiring someone to take care of lawn maintenance.
The idea of suburban living has long since been the option when you’re ready to start a family and “settle down”, but it is worth asking yourself if this is something that is going to make sense financially in today’s landscape.
Contemplating a move to the suburbs and need help weighing out your options? Give us a call 416 769 3437