Property Ladder How to turn $95,000 into $1 million
She built up $1 million in equity, and she did it (mostly) by herself
In 1985, Ann McGill was nearing 30, and she had a good job as an administrator at a big-five bank. She decided to buy a house on her own, but she didn’t have enough for a down payment, so she moved in with her parents for a while to save up.
Months later, Ann’s brother suggested that she buy his two-bedroom semi, near Main and Gerrard—which she did, for $95,000. At the time, for someone as young as she was, it was a lot of money. And borrowing wasn’t cheap: mortgage rates were in the double digits. To pay off her loans, she rented out a spare bedroom.
By the late 1990s, Ann had been promoted to a team leader at work, which came with a substantial raise. She fell in love with a three-bedroom home on Beech Avenue, in the Beaches, but the owner wouldn’t accept less than $200,000, which at the time seemed outrageous. (Today, of course, nearby houses go for upwards of $1 million.) Instead, she bought a three-bedroom semi in the less-fashionable Upper Beaches for $189,000.
In 1998, her boyfriend moved in. They were both working from home, and the semi suddenly felt too small. Ann decided to look at the eastern edge of Leslieville, pre-gentrification. Her partner didn’t think it was safe, but he wasn’t contributing any money to the purchase, and they had agreed that he would have no claim on the new house. Over his objections, Ann bought a three-bedroom in the area for $293,500.
The house outlasted the boyfriend, and, by 2008, Ann’s mortgage was paid off. She retired at 55 and bought Fred, her golden retriever, who is currently her only housemate.
The boTTom lIne: Ann, now 61, managed to build a million dollars in equity on a single income. Thanks to early retirement, she’ll have plenty of time to enjoy it.