I agree with you but how many home owners especially first time have such a good earning (20% down payment) and saving who can afford 500K home and stay within 40% of living cost. Then should also save for rainy days,TFSA, RRSP/401K, RESP. Oh yes last thing.. home owners have some luxury need like food and clothes.

I am home owner too but bought 35% lower price than US peak in 2006 with 30% down payment and 15 yrs lowest interest locking. So house price never goes up all the time..

Quote:

---

Originally posted by febpreet

That's true as well, Rahul. And, another side of the coin.

The trouble is manifold. If I don't buy a $600,000 house now, chances are by the time I will have accumulated a substantial amount for a downpayment, the same house will be listed for $650,000. Two years ago, the same brand new house was selling for $535,000.

I guess, there's never a bad time to buy the real estate, considering you have at least 15%-20% of downpayment and also some spare money aside after paying towards the downpayment.

So, it's a double whammy of sorts.

---

I think the real estate agents are the real culprit in all this.....

2.5% commision for both side agents which come to 5% of the home price....come on !!!

they do all sort of things to get the sale happen & influence the prices too