TAVIA GRANT
Globe and Mail Update
Housing affordability in Canada continued to deteriorate in the first quarter as costs of owning a home rose at a faster pace than incomes, Royal Bank of Canada said Thursday.
Moreover, the rising price of resale homes combined with higher mortgages rates doesn't bode well for affordability in the future, the bank said in its quarterly report.
In the first three months of the year, affordability worsened for the second quarter in a row.
http://www.theglobeandmail.com/servlet/story/RTGAM.20060518.wrbc0518/BNStory/Business/home
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
House prices jumped up almost 100,000 $ since 2 years i am here. Anything which was for 200,000 is now almost 280,000 but the salaries have not jumped up so much.
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You know you are a desi when ........ You spew forth the virtues of India, but don't want to live there...............You've never had a tanning salon membership
Quote:
Originally posted by Loser
House prices jumped up almost 100,000 $ since 2 years i am here. Anything which was for 200,000 is now almost 280,000 but the slaries have not jumped up so much.
You are right. The house prices in Alberta, specially Calgary have jumped over 30% in last 12 months because of the booming economy. It could be even more in some better localities there.
I was talking to my client from Calgary yesterday and I was shocked when he told me that his house is now vauled at around $600,000. I got him the mortgage only 10 months ago when he bought his house for $390,000. Now he is looking to refinance to pay off his line of credit and getting extra money for investment.
Yet another client of mine who has just moved to Calgary from Kitchener was telling me that the houses are selling for more than the listing prices. If a house is listed at $350,000 it would end up selling at over $370,000 as there are number of buyers and there is a bidding war. The poor guy is selling his Kitchener house for $195,000 and is now forced to buy a house in Calgary for over $380,000 (almost double price) as he switched to a better job there from Ontario.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
That is so true . Many people from out of province have job offers in Alberta but do not move ,just because they cannot afford to buy a house here.
I know one guy in my workplace lives in his Holiday trailer in a RV park.
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You know you are a desi when ........ You spew forth the virtues of India, but don't want to live there...............You've never had a tanning salon membership
Hi,
I would like to ask you if its a good time to buy property or no. I have already baught a house and I do not know whether I made a right decision, becoz I solely bought this property for investment purpose.
Thanks in advance.
Location: God's own country
Posted on: 19-05-06 14:31:17
Quote:
Originally posted by Mjhamb
Hi,
I would like to ask you if its a good time to buy property or no. I have already baught a house and I do not know whether I made a right decision, becoz I solely bought this property for investment purpose.
Thanks in advance.
Hi!
Could you tell us where you are located and where have you bought the first property and at what price. Is it currently being rented out and for how much? How much is the mortgage that you have to pay each month?
if the first property that you have bought is used partially by you to stay there and renting the other half or 3/4 is a good idea and will get you good returns at the end of the day.
The best return in a house will be to buy a new house in an upcoming area. In this case, you will stand to profit in 3 to 5 years time but the margin will be very low since the market is saturated now and interest rates are a bit high. this will be the case in which you buy the 2 nd. property and rent it out in full.
TK
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I am a Gents and not a Ladies.
Location: Canada-Glorious and Free
Posted on: 19-05-06 16:28:54
Quote:
Originally posted by Pramod Chopra
TAVIA GRANT
Globe and Mail Update
Housing affordability in Canada continued to deteriorate in the first quarter as costs of owning a home rose at a faster pace than incomes, Royal Bank of Canada said Thursday.
Moreover, the rising price of resale homes combined with higher mortgages rates doesn't bode well for affordability in the future, the bank said in its quarterly report.
In the first three months of the year, affordability worsened for the second quarter in a row.
http://www.theglobeandmail.com/servlet/story/RTGAM.20060518.wrbc0518/BNStory/Business/home</font>
Just as you mentioned in a later posting. Housing in Alberta is booming at rates that are unusual for the rest of Canada. That is what is driving the National Stats reported by RBC / Globe And Mail.
Allow me to explain. Home affordability involves prices of homes right across Canada, including Alberta's phenomenal rise. That is compared to national average income which also includes people in NFLD. So when you look at a \"basket\" of properties like that, obviously it will show a rise in average home prices.
The other thing they don't mention is the market forces. Prices in Alberta or GTA or Montreal or Vancouver are rising because there is a demand driven by low downpayment and low interest rate environment. If there were no buyers for these properties, the prices would not be inflated as they have been. So while it may seem to be out stripping incomes, that is not true.
So in short, my point is this. Regional affordability is still very good in Canada. In Alberta, GTA et al with high salaries comes high home prices. In NFLD, with low salaries comes low home prices. It is when you mix the picture into a national survey the stats get skewed.
BV
