How much minimum carry home Salary needed to buy home 300-325K
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Ultimately, it is a matter of PERSONAL PRIORITIES. Banks, real estate agents are just facilitating the objectives we set for ourselves. They do not set our goals for us.
It is the management policy of banks(set by the top management earning gazillions) that shapes how banks offer schemes and operate. It is up to us whether we pick the fruit or not. Is the customer not king(or queen!)?
There are no short cuts to doing one's home work. Each of us has a different risk tolerance level. Buying a home is a dream for most of us, but we have to acknowledge the responsibility such a decision brings with it. Maybe we can learn from this and be more cautious in our calculations and decisions. Which is what this thread is about primarily.
Amit is doing a great job in helping us see different aspects of the issue and I commend him.
Amit.. I love your post and they are pretty informative. I think mostly CD have high regards for you.
Realtors are not the only one who is responsible but all recession creators (Realtors, Real estate boards, CHMC, banks, mortgage broker, bank's economist, govt., feedie mac, fennie mac, NAR, flippers) are responsible for this mess.
1. Recession does not bring housing price down but housing bubble brings recession.
2. Sub prime was not a problem but housing price stop going up is a problem
3. Mortgage brokers take a percentage of the loan, so they want buyers to take out the biggest loan possible.
4. Banks get origination fees and then sell most mortgages, so they do not care about the bankruptcy of borrowers. They will lend way beyond what buyers can afford because they lose nothing if the buyer defaults
5. Appraisers are hired by mortgage brokers and banks, so they are going to give the appraisals that mortgage brokers and banks want to see
6. Newspapers/media earn money from advertising placed by realtors, lenders, and mortgage brokers, so papers are pressured by that money to publish the real estate industry's unrealistic forecasts, and to avoid the fatal words: "prices are falling".
7. Owners themselves do not want to believe they are going to lose huge amounts of money.
8. Who is infront/helpdesk to make this work.. Realtors.
All these over educated experts were selling these lies for long time:
1. Houses always increase in value in the long run.
2. As a renter, you have no opportunity to build equity.
3. Renting is just throwing money away.
4. All real estate is local, so you cannot say anything about the national market. We are different than USA.
5. It would take another 911 terrorist attack or a major earthquake that wipes out this area in order for the price to fall by 50%.
6. Houses are worth whatever fools will pay for them.
7. If you don't buy now, you'll never get another chance.
8. It's not a house, it's a home.
9. My appraisal proves what my house is worth.
10. Newspaper articles prove prices are not falling.
11. You have to live somewhere.
12. Local incomes justify the high prices.
http://patrick.net/housing/crash.html
Quote:
Originally posted by amit kalia
Quote:
However, additionally Realtor to a great extent would also responsible for this as they are ones who only suggest buyers to go for bigger and bigger homes even though buyers do not seem to fit in that income range.
I don't think so. You cannot blame Realtors. If I will tell you to jump into the well, will you?
Location: carl sagan's universe
Posted on: 29-01-09 09:15:10
Quote:
Originally posted by amit kalia
Quote:
However, additionally Realtor to a great extent would also responsible for this as they are ones who only suggest buyers to go for bigger and bigger homes even though buyers do not seem to fit in that income range.
I don't think so. You cannot blame Realtors. If I will tell you to jump into the well, will you?
so who to blame for the current mortgage mess in the US? The people who gave the ninja loans, who took the ninja loans , who packaged them into SIVs?
who ... etc. etc
Fingers are being pointed to the banks who gave out the loans in the first place, not those who fell prey to their tactics.
At any rate by most counts the default rate on mortgages in Canada is anywhere between
.2 -.4 % which is negligible in the grand scale of things.
Also among those how many are due to people unable to pay and how many due to marriage breakdowns and other causes.
The contention is that defaults solely due to the inability to pay is less than .1%!
Personally at a cursory glance, Pratick's and your criteria are much too conservative to go by. Most people wouldn't buy a home if they went by ur criteria.
Yet many go ahead and as pointed out the default rate is low (you can google if u don't believe me- but since you claim there are fantastic mortgage brokers in ur office - they will corroborate what I am saying), so the banks/lenders will say ' hey our laid out criteria doesn't lead to many defaults, so like what r u griping about? We ain't cribbin', we's a laughin', and to boot the govt has tranferred those loans from our books to theirs- hot dog!'
Quote:
Originally posted by investpro
The contention is that defaults solely due to the inability to pay is less than .1%!
Personally at a cursory glance, Pratick's and your criteria are much too conservative to go by. Most people wouldn't buy a home if they went by ur criteria.
Yet many go ahead and as pointed out the default rate is low (you can google if u don't believe me- but since you claim there are fantastic mortgage brokers in ur office - they will corroborate what I am saying), so the banks/lenders will say ' hey our laid out criteria doesn't lead to many defaults, so like what r u griping about? We ain't cribbin', we's a laughin', and to boot the govt has tranferred those loans from our books to theirs- hot dog!'
I expressed my personal views, and that's what I always do even when I am doing a one-on-one session with my customers. Some agree and some don't.
Ultimately, it is the customer's decision that prevails.
There was no problem until the asset prices were increasing (1999 to Oct 2008). There is definitly a problem now and this will only get worse, if people don't get it right. Especially now, when the property prices are plunging.
One should be responsible and accountable for one's own actions. Personal ego and desires also take some blame, in my views. I also agree that our society has influenced our thought process by giving us a false concept of debt. This is further made worse by peer pressure, media hype etc.
The principle, "As you sow, so shall you reap" is proving itself to be true in the markets out there.
Have a nice day!
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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/
Quote:And by theirs, you mean ours, right?
Originally posted by investpro
and to boot the govt has tranferred those loans from our books to theirs- hot dog!'
Well, we gotta have a bubble every 5 years so what's next?
I mean, what's the fun of capitalism without a nice, juicy, bubbly bubble every 5 years.
Dot Com, Oil, real estate it's a fun ride, innit?
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Location: God's own country
Posted on: 29-01-09 10:35:54
Quote:
Originally posted by amit kalia
You cannot blame Realtors. If I will tell you to jump into the well, will you?
Very bad anology. People look upon their realtor for giving honest, un biased advise. So no one will be expecting the realtor to get paid and give them false advise.
Though, I am not insulting any one, I tend to agree with the OP.
Last month, I had gone to Economy Lube for an Oil change. I just went there to get an oil change. While they were changing Oil, the technician brought a sample of the coolant and said that I have to change it since he told me that the sample showed a lot of dirt, I refused and he saw me a bag of sh*t and told me that if the car stalls tehn it is my problem. So I told him to chnge it for $59.99 + taxes. Then he brought me my transmission fluid and again told me that it was very dirty and told me to change it. This time , I refused , despite him giving me the dirty look b'cos I found out by now that we was just cheating me based on my weakness.
I am sure that that is what the OP meant. There are some who will give dirty looks, give you sucess stories of making money just for you to make the bigger deal.
Peace by TK
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I am a Gents and not a Ladies.
[quote/]
Personally at a cursory glance, Pratick's and your criteria are much too conservative to go by. Most people wouldn't buy a home if they went by ur criteria.
I agree...hardly anyone will buy if one starts thinking like that.....again as mentioned above...its personal choice too. If one has some dreams & goals...you have to take a little risk & sincerely work towards achieving your goal/desire. In north america, even when its no recession, when is the fear of losing job on a side shelf.
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Pooja
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