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How much an average SFH in Vancouver.
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Posted on: 20-03-13 07:50:24
scary scary!!!
The articles are saying same things as in 2006 when I bought my first home!
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Quote:
Originally posted by JRF
How much an average SFH in Vancouver.
About a million dollars.
40 kms from Vancouver (In burbs) - 3 level detached: Starts from $600,000.
They call it BC - Bring Cash, for a reason.
It means the SFH in GTA area are much cheaper so if there will be any correction, should not be more than 10 to 15%. Not so scary.
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A Delhite in Toronto
Yes Delhite, GTA is nowhere near the danger mark, but Metro Vancouver is.
It's highly inflated - so much for living in a temperate and moderate weather <sigh>.
No wonder, new Townhomes are mushrooming in burbs like crazy. This is the only housing type that an average income family can afford here.
10% to 15% correction is not scary? People need 15% to 20% return to sale house without profit after calculating mortgage fees, closing cost, realtor fee, interest to mortgage and other expenses. Real Estate bubble inflates on emotion and cheap money.
15% correction can crash market for longer period of time. There was 10% to 15% price correction happened in 2007-2008 in US and now many housing markets are 30-40% cheaper.
I have hard time to understand GTA and Vancouver residents. Canadian market pays less money than US counter part for same job and pay higher gas, food, flight, taxes, restaurant then how can they afford over-price housing if buying out of comfort zone. How to save for univ, retirement, rainy days, investment, travel...and many things.
Quote:
Originally posted by Delhite
It means the SFH in GTA area are much cheaper so if there will be any correction, should not be more than 10 to 15%. Not so scary.
Quote:
Originally posted by rahul_singh23
Canadian market pays less money than US counter part for same job and pay higher gas, food, flight, taxes, restaurant then how can they afford over-price housing if buying out of comfort zone.
How about guaranteed lower interest rates to start with? And until last year lower downpayments and stretched ammortizations?
And since govt has taken action on second part i.e. restricted ammortization and downpayments, we are already seeing the effects of it.
Now monetory policy cannot do much about the interest rates..even if it goes up, it will be quarter of a percent or max half percent. By the time it goes beyond those rates, most of the homehowners would already have paid off first 5 years of loan thereby reducing the debt and hence maintaining the same or lower monthly payments.
Quote:
Originally posted by rahul_singh23
How to save for univ, retirement, rainy days, investment, travel...and many things.
Lets go with your suggestion..rent a house and save towards univ, retirement, rainy days etc..
Where do you suggest money should be invested? Stocks? Bonds? forex? commodities? so even if you do that what is the guarantee that it will have better returns as compared to housing and dont forget the expense of renting while investing into those things?
Again referring back to some of the previous similar calculations:
If you have $100K where will you put that money? Buy a house worth of 5 times the downpayment? or rent a house and invest in stocks? (remember the rent expense while considering this option). You are comparing things with US..in US those who sufferred the most were the folks who lost the money in stocks (retirement accounts)..at least homeowners had a choice to abondon the houses. I am sure the folks who are retired and rented and invested are in worst shape.
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