Vancouver, "Seriously Unaffordable"

[cabotp]

Originally Posted by YYCguys

In Canada, if someone is interested in buying a property that has a secondary suite or the potential for same, can one apply for a mortgage with the intention of rent subsidising their mortgage? I believe this may be the case in the US and hope it is too here.

At one time this was illegal. But people started building illegal secondary suites in their house. For the other family members or other non-family members to live. So after a while the city decided to just legalize them and set some rules.

As for will banks give you a mortage with the intention of renting it out. They will but it becomes a business investment. And if the bank feels that you can't get the rent to cover the mortage. They will see if you can cover the difference. If you can't they won't give you the mortgage.

Just so you know the city of Vancouver has recently just legalized laneway housing. But you can only rent out and not sell this housing if it is on your property.

And also Condo's over 1000 sq feet. Can have 250 sq ft of the condo redisgned as a secondary condo suite with a seperate entrance. Again this can only be rented out and the owner of the 1000 sq feet owns the 250 sq ft condo.

[MR. Cosmopolitan]

Originally Posted by SpongeG

its very hard to get into social housing - if it were only that easy

then they should make it easier.

[DKaz]

Just from my experience... the GDS and TDS of 32% and 40% limits that most banks in Canada use is a very good indication of how much people can afford to buy. For someone or a couple making a total of $100,000 a year and assuming no other debts, that means they can pay say $2200/mo on mortgage and $450/mo for strata and property taxes can afford to buy a house for about $420,000 assuming they put in a 5% down payment. If they put in a traditional 25% downpayment, that's a $530,000 house right there. That's about 4x to 5x their income.

[twoNeurons]

Originally Posted by DKaz

Just from my experience... the GDS and TDS of 32% and 40% limits that most banks in Canada use is a very good indication of how much people can afford to buy. For someone or a couple making a total of $100,000 a year and assuming no other debts, that means they can pay say $2200/mo on mortgage and $450/mo for strata and property taxes can afford to buy a house for about $420,000 assuming they put in a 5% down payment. If they put in a traditional 25% downpayment, that's a $530,000 house right there. That's about 4x to 5x their income.

What risk the bank is willing to take and what people can afford to buy are different things, but I hesitate to think 1st time buyers are saving up a 25% downpayment.

You don't just save up $120,000 on your own. And if you can... why not pay down a less expensive house.

Chances are, if someone is saving up for a house, they start looking once they've got $30k - 40k. At least, imho, they shouldn't be looking before that.

[cabotp]

Originally Posted by twoNeurons

What risk the bank is willing to take and what people can afford to buy are different things, but I hesitate to think 1st time buyers are saving up a 25% downpayment.

You don't just save up $120,000 on your own. And if you can... why not pay down a less expensive house.

Chances are, if someone is saving up for a house, they start looking once they've got $30k - 40k. At least, imho, they shouldn't be looking before that.

People will buy what they want or need. If they feel that saving up for a longer time to have a bigger down payment in order to buy a bigger dwelling unit they will. But if they feel a smaller dwelling unit will do then they will buy that when possible.

Although the old idea that bigger is better is going to have to change.

As for the Canadian banks and there regulations about not lending to people who do no qualify. Even though they could of made money on it if they did. All I can say is thank you that they have them and stuck to their guns about it. At least our banks didn't seem to get crushed like a lot of other banks in the world. And did not need any govt assistance.

[LotusLand]

Originally Posted by twoNeurons

What risk the bank is willing to take and what people can afford to buy are different things, but I hesitate to think 1st time buyers are saving up a 25% downpayment.

You don't just save up $120,000 on your own. And if you can... why not pay down a less expensive house.

Chances are, if someone is saving up for a house, they start looking once they've got $30k - 40k. At least, imho, they shouldn't be looking before that.

Actually you can save up $120,000 on your own if you have a decent paying job ($50,000 and up a year) control your expenses, which sadly my generation is totally shitty at and set budgets and goals. I know it can be done because I did it in approx. 5 years. I started young and my main expense the past 4 years was rent at $700/ mo, car insurance at $250/mo and of course entertainment, meals etc... Still I was able to save about $1800 a month. If you are a couple cut that time in 1/2.

You just have to be realistic and make some financial sacrifices. Of course a steady job and good pay help. But the younger you are starting to save the better off you'll be in the long run.

[DKaz]

Yah I was able to save $12,000 in about 9 months back in 2006-07 which went to buying my condo. At the same time I paid off a $2,500 credit card, actually within the first 3 months. It just takes a heckuva lot of discipline and motivation. Ate at home most of the time. My recreation involved playing NHL 07 on my XBox 360 ALL THE TIME lol, jogging and walking everyday which is virtually free, prepaid community centre gym card which is cheap, and I play goalie in hockey so it's usually free, although carrying hockey gear on transit sucks not only for me but fellow passengers. Burnaby 8 Rinks has hockey gear valet service for $200/8 mo now which I took advantage of during the 07-08 season, allowing me to live in Mission and play hockey in Burnaby all while my car was uninsured to save money. I would still go out with friends twice a month so it wasn't all blah.

[AlexYVR]

Originally Posted by DKaz

Yah I was able to save $12,000 in about 9 months back in 2006-07 which went to buying my condo. At the same time I paid off a $2,500 credit card, actually within the first 3 months. It just takes a heckuva lot of discipline and motivation. Ate at home most of the time. My recreation involved playing NHL 07 on my XBox 360 ALL THE TIME lol, jogging and walking everyday which is virtually free, prepaid community centre gym card which is cheap, and I play goalie in hockey so it's usually free, although carrying hockey gear on transit sucks not only for me but fellow passengers. Burnaby 8 Rinks has hockey gear valet service for $200/8 mo now which I took advantage of during the 07-08 season, allowing me to live in Mission and play hockey in Burnaby all while my car was uninsured to save money. I would still go out with friends twice a month so it wasn't all blah.

I was going to say - Does anyone else here feel like 'If I can do it, so can other people?' I know it's an attitude that only takes into consideration your own circumstances, but I don't make more than $50,000 a year, and I have a place I like, I'm putting myself through grad school, and I still have enough to go out with friends. It all depends on how disciplined you are. I don't live downtown, but I live 10 minutes across the bridge. I don't drive a car, because I don't need it in the city. It's affordable if you make it affordable.

[cabotp]

I think some people can't tell the difference between a need and a want.

We need shelter, food, transportation (car or transit). So everyone knows that you are going to spend money on that. What you spend will depend on where you live and how you get around and how much you and where you eat.

The reason why people can't save is that they spend too much on their wants. What ever they may be. But I guess some people really do need to go out partying every weekend.

One thing I have done is setup an auto transfer of $50 per week to my TFSA account. So I get paid weekly on the friday. The $50 is transfered on the following Sunday. Because I don't see the money I don't get a chance to spend it. That is where I think a lot of people have a problem, they have money in their account so they tend to just spend it.

[Distill3d]

Just saw on GlobalBC news that the AVERAGE price of a USED single detached home is $863,000. Thats half a million more than anywhere else in the country.

[Hed Kandi]

Originally Posted by Distill3d

Just saw on GlobalBC news that the AVERAGE price of a USED single detached home is $863,000. Thats half a million more than anywhere else in the country.

No wonder so many in this city choose to live on the streets.

[ckkelley]

Originally Posted by Distill3d

Just saw on GlobalBC news that the AVERAGE price of a USED single detached home is $863,000. Thats half a million more than anywhere else in the country.

That is a staggering figure.

[jlousa]

pffft average house prices are for average people.

[trofirhen]

Originally Posted by jlousa

pffft average house prices are for average people.

Excuse me, but how are you defining "average" in this context. Income? Mentality? Number of people per family?

Sorry, maybe I'm looking for a meaning that isn't there, but I just don't get it.

[whatnext]

Originally Posted by Distill3d

Just saw on GlobalBC news that the AVERAGE price of a USED single detached home is $863,000. Thats half a million more than anywhere else in the country.

There's still a bubble that's going to pop sometime. Where was I reading that rumour has it that Mainland Chinese money is keeping this bubble expanding (for now).

[quobobo]

^^ Yep, always those foreigners.

(if I could roll my eyes at you through the internet, I would)

[Yume-sama]

Originally Posted by quobobo

^^ Yep, always those foreigners.

(if I could roll my eyes at you through the internet, I would)

<--- That works!

The other 96% of people who aren't foreign buyers must be just so mad at them Chinese.

[nova9]

Originally Posted by whatnext

There's still a bubble that's going to pop sometime. Where was I reading that rumour has it that Mainland Chinese money is keeping this bubble expanding (for now).

It may be true. But most of them are actually IMMIGRATING here and LIVING here so if they can afford it, it's not my problem. The Chinese nouveau-rich that come here are not the type that have multiple homes like the elites of the West. If you want to point your finger at a racial group, I suggest you look elsewhere.

[vansky]

Originally Posted by nova9

It may be true. But most of them are actually IMMIGRATING here and LIVING here so if they can afford it, it's not my problem. The Chinese nouveau-rich that come here are not the type that have multiple homes like the elites of the West. If you want to point your finger at a racial group, I suggest you look elsewhere.

No matter which source the money comes from, it's a hot place now.
It's a shitty time for local "average" new home buyers. The Liberals r too ignorant on the matter, there has to be some solution to this.

[vansky]

Originally Posted by trofirhen

Excuse me, but how are you defining "average" in this context. Income? Mentality? Number of people per family?

Sorry, maybe I'm looking for a meaning that isn't there, but I just don't get it.

Average people I suggest is the middle portion of our middle class, and the upper portion of our working class. For this portion represents most of the population, and does most of the labour and brain work. When you look at it, this is the population that produces the most, and sadly not getting the most.