Figure a budget and see. Big dog = large pet food bill, vet visits and shots, training so it doesn't eat the house while you are gone at work all day and time for exercising.Today's house prices may or may not reflect what you will be paying once you save a down payment. Same for interest rates, but it is a place to start. How much does that dream house cost right now? Figure 20% down payment so you have an idea of how much to save. Saving involves effort - so do you want HD TV with a million channels and all the movies or do you want to save that $100 a month? Do you want to eat out at fancy restaurants or stretch your food dollar and eat chicken at home?Figure in your utilities, car expense, food, insurance, loans, hair cuts, doctor visits, medications, gifts, travel, entertainment, clothing, emergency fund. It is always best to live within your means and never be dependent on another person - that way you won't be trapped.
Short answer: Yes. It mostly depends on where you live. That will decide the price of housing, which decides your mortgage which decides how much you have left over for the dog. The dog will run you $1 000 year with food, vet bills, medication etc.
Not even close.The rule of thumb for a mortgage is that it cannot be more than 3 times your salary. So, a mortgage of $120,000. I don't know of anywhere where you can find a house that cheap; certainly not in a city. You might be able to find a really cheap condo apartment in a poor part of town - and, maybe not even that.With the two incomes, of $80,000, then, you could afford a modest house, on a small lot. Just.
-------------------------------------------------- Canadian interest rate forecast
For budgeting purposes the maximum you should pay for a house is about 7 years salary. This is assuming a standard down payment and mortgage.. If the house price is higher than this you will be short of funds for other activities. Do a little searching on a real estate site for houses in YOUR price range and you can answer your own question. Search by price not house type to get your answer.
The hard part is finding the medium size house with a really big yard if you plan to live anywhere close to the Greater Toronto Metropolitain Area. Or at least, one that you could afford on $42K per year (before taxes).There are certainly places outside Toronto. Ottawa or Kingston areas are more affordable, for example. But maybe you want to go to a bank website and see what you can afford for a mortgage before you plan on the medium house and a big yard.