Calgary Construction XXVI

[Bad Grizzly]

Originally Posted by milomilo

You might want to check your math on that. If house prices constantly rise above inflation/wage growth, then eventually a point will be reached where people can't afford them, and the market will crash. See Vancouver and Toronto.

What is this "the concept of cheap housing has been tried and doesn't work" you speak of? Calgary currently does have moderately affordable housing, let's keep it that way and allow people to use the spare money on productive things rather than dead money in a house.

As I said in my previous post, most people's incomes over a long term aren't tied to inflation and are better. An by most people, I mean people with some ambition and some smarts. If one spends their life working at Walmart and or Tim Horton's and never getting promoted, this doesn't apply.

People see their income move up relative to inflation through various means other than simply getting an inflation raise every year. You buy a smaller house at a certain time in your life, and as your income increases, you sell and move up into a larger, nicer place and later on with your income situation continuing to improve and your mortgage lowering itself relative to the current economy due to appreciation, you get into a position where your nice home is cheap. See every city anywhere, but Vancouver and Toronto. Even in those cities, many who played their cards right have done well. Myself, and many other people I know bought their houses over the last couple of decades and have done very well over time. Our mortgages are low or gone altogether, so for me dead money would be rent going to an apartment.

The cheap housing I'm referring to that didn't work is something like this.

[Northern]

Good example of how people are able to afford a nice home if they work hard at it.

Originally Posted by Daemon

and mansion Too cold to take too many photos. Only one

[Bad Grizzly]

In many cases yes. To have a house that large takes more than just hard work only. A few other factors, but I do agree 100% that hard work will go a long ways. A few smarts helps too.

Originally Posted by Northern

Good example of how people are able to afford a nice home if they work hard at it.

[Suburgatory]

Originally Posted by Northern

Good example of how people are able to afford a nice home if they work hard at it.

Or. Inherit money. Win the lottery. Buy Apple shares at $1. Mine bitcoin early. Receive executive role by parent’s corporation. Code basic website over a few days, sell for millions. “Invent” smiley faced foam kitchen scrubber, sell for millions. Sell drugs. Marry into rich family. Foreign wealth transfer. Ponzi scheme. Trust fund. Construction mafia.

[milomilo]

Originally Posted by Bad Grizzly

As I said in my previous post, most people's incomes over a long term aren't tied to inflation and are better. An by most people, I mean people with some ambition and some smarts. If one spends their life working at Walmart and or Tim Horton's and never getting promoted, this doesn't apply.

People see their income move up relative to inflation through various means other than simply getting an inflation raise every year. You buy a smaller house at a certain time in your life, and as your income increases, you sell and move up into a larger, nicer place and later on with your income situation continuing to improve and your mortgage lowering itself relative to the current economy due to appreciation, you get into a position where your nice home is cheap. See every city anywhere, but Vancouver and Toronto. Even in those cities, many who played their cards right have done well. Myself, and many other people I know bought their houses over the last couple of decades and have done very well over time. Our mortgages are low or gone altogether, so for me dead money would be rent going to an apartment.

The cheap housing I'm referring to that didn't work is something like this.

And as I implied, you appear to have a problem with basic numeracy. Yes, peoples income increases with age, but that just means they will only be be able to maintain the same buying power rather than increasing it with increasing income if average house prices increase faster than average wage growth. And more importantly, it means first time buyers are screwed.

But sure, you had 'smarts' (lol) because you happened to enter the housing market at a time when house price to income multiples were lower than they are today, well done. You and Northern can continue your circle jerk if it makes you feel better.

[Suburgatory]

Very well put.

Originally Posted by milomilo

And as I implied, you appear to have a problem with basic numeracy. Yes, peoples income increases with age, but that just means they will only be be able to maintain the same buying power rather than increasing it with increasing income if average house prices increase faster than average wage growth. And more importantly, it means first time buyers are screwed.

But sure, you had 'smarts' (lol) because you happened to enter the housing market at a time when house price to income multiples were lower than they are today, well done. You and Northern can continue your circle jerk if it makes you feel better.

[jc_yyc_ca]

With all due respect, you’re the one struggling with the basic numbers. What BG said in this post is true and applies to a lot of people. You buy your house at some point, and then you are locked into the prices of that time even if your house goes up in value. You and/or your wife continue to get raises etc. and you build up your finances, all the while paying down the principle on your mortgage. I think you missed the part where BG mentioned people get raises over time and other various sources to boost income. You also probably missed the fact that, once you buy a house you are locked into the market and it’s a hedge against inflation. This isn’t rocket science and millions of people everywhere grasp the concept.

Originally Posted by milomilo

And as I implied, you appear to have a problem with basic numeracy. Yes, peoples income increases with age, but that just means they will only be be able to maintain the same buying power rather than increasing it with increasing income if average house prices increase faster than average wage growth. And more importantly, it means first time buyers are screwed.

But sure, you had 'smarts' (lol) because you happened to enter the housing market at a time when house price to income multiples were lower than they are today, well done. You and Northern can continue your circle jerk if it makes you feel better.

[milomilo]

That's not the problem I'm referring to. The problem is reduced affordability for both first time buyers and those wanting to move house. Sure, you've made paper money but if you want to move house, the new one has likely gone up just as much, so you're no further ahead.

Thanks for the lesson on how a mortgage works though, very insightful.

[Suburgatory]

What are all these regularly guaranteed salary raises above inflation I keep hearing so much about that every single citizen is getting?

[Corndogger]

Originally Posted by milomilo

That's not the problem I'm referring to. The problem is reduced affordability for both first time buyers and those wanting to move house. Sure, you've made paper money but if you want to move house, the new one has likely gone up just as much, so you're no further ahead.

Thanks for the lesson on how a mortgage works though, very insightful.

Home ownership rates in Canada and most of the world have been very stable for decades. If some Millenials are finding it hard to buy maybe they should look at their expenses. Going on exotic trips constantly, buying over priced iPhones, etc. adds up.

[Bad Grizzly]

It doesn’t work that way. You build up equity in a home and after a while you have more income and decide to move to a larger, nicer home. You sell your current home which has appreciated and also has a lower principal balance. You put that money from the sale towards a larger, nicer place. Your mortgage is not much more than your previous mortgage, and since you have more income it doesn’t matter much. If you stay in that house you can enjoy cheap housing costs as time time goes on. At some point you have no mortgage at all.

Millennials can do this do msny but are of a different mindset. They’re only worried about their pumpkin spiced latte and instagram account, and what’s happening that day or next week. They aren’t long term people and think everything should come to them easily because they have a post secondary education.

Originally Posted by milomilo

That's not the problem I'm referring to. The problem is reduced affordability for both first time buyers and those wanting to move house. Sure, you've made paper money but if you want to move house, the new one has likely gone up just as much, so you're no further ahead.

Thanks for the lesson on how a mortgage works though, very insightful.

[Bad Grizzly]

Exactly.

Originally Posted by Corndogger

Home ownership rates in Canada and most of the world have been very stable for decades. If some Millenials are finding it hard to buy maybe they should look at their expenses. Going on exotic trips constantly, buying over priced iPhones, etc. adds up.

[SteveP]

Not just iPhones, fancy coffees and exotic trips, but expensive everything from haircuts and cars. Millennial’s have no concept of driving an older less fancy car in order to get ahead. Little self control from what I’ve seen.

If they want to go ahead and spend money on those things, that’s great it’s their life to enjoy, but they shouldn’t be complaining about not being able to afford a house. Young people not being able to buy a house these days is a matter of not knowing how to prioritize things.

That and what bad grizzly touched on, I find a lot of millennials are for lack of a better word, lazy. I’m sure that plays a part.

Originally Posted by Corndogger

Home ownership rates in Canada and most of the world have been very stable for decades. If some Millenials are finding it hard to buy maybe they should look at their expenses. Going on exotic trips constantly, buying over priced iPhones, etc. adds up.

Originally Posted by Bad Grizzly

It doesn’t work that way. You build up equity in a home and after a while you have more income and decide to move to a larger, nicer home. You sell your current home which has appreciated and also has a lower principal balance. You put that money from the sale towards a larger, nicer place. Your mortgage is not much more than your previous mortgage, and since you have more income it doesn’t matter much. If you stay in that house you can enjoy cheap housing costs as time time goes on. At some point you have no mortgage at all.

Millennials can do this do msny but are of a different mindset. They’re only worried about their pumpkin spiced latte and instagram account, and what’s happening that day or next week. They aren’t long term people and think everything should come to them easily because they have a post secondary education.

[ST1]

Are those park towers done yet? They’ve been working on them a long time.

Originally Posted by Daemon

[ST1]

Almost finished!

Originally Posted by Daemon

Telus

[Suburgatory]

Originally Posted by Bad Grizzly

It doesn’t work that way. You build up equity in a home and after a while you have more income and decide to move to a larger, nicer home. You sell your current home which has appreciated and also has a lower principal balance. You put that money from the sale towards a larger, nicer place. Your mortgage is not much more than your previous mortgage, and since you have more income it doesn’t matter much. If you stay in that house you can enjoy cheap housing costs as time time goes on. At some point you have no mortgage at all.

That has absolutely nothing to do with the discussion about rising or dropping house prices. But keep on repeating it. Cause it’s really quite interesting.

[Suburgatory]

Originally Posted by ST1

Are those park towers done yet? They’ve been working on them a long time.

6 buildings and internal roads and landscaping. Seems like a pretty decent completion time.

[Suburgatory]

Originally Posted by SteveP

Not just iPhones, fancy coffees and exotic trips, but expensive everything from haircuts and cars. Millennial’s have no concept of driving an older less fancy car in order to get ahead. Little self control from what I’ve seen.

If they want to go ahead and spend money on those things, that’s great it’s their life to enjoy, but they shouldn’t be complaining about not being able to afford a house. Young people not being able to buy a house these days is a matter of not knowing how to prioritize things.

That and what bad grizzly touched on, I find a lot of millennials are for lack of a better word, lazy. I’m sure that plays a part.

Stereotyping is fun.

[Deepstar]

Me no able understand sentence that.

Originally Posted by Bad Grizzly

It doesn’t work that way. You build up equity in a home and after a while you have more income and decide to move to a larger, nicer home. You sell your current home which has appreciated and also has a lower principal balance. You put that money from the sale towards a larger, nicer place. Your mortgage is not much more than your previous mortgage, and since you have more income it doesn’t matter much. If you stay in that house you can enjoy cheap housing costs as time time goes on. At some point you have no mortgage at all.

Millennials can do this do msny but are of a different mindset. They’re only worried about their pumpkin spiced latte and instagram account, and what’s happening that day or next week. They aren’t long term people and think everything should come to them easily because they have a post secondary education.

[Deepstar]

Detatched houses are the way to go, but apartments don't seem to be doing as bad as some make it out to be.

Originally Posted by Fatcat loser

The one in the middle has performed the best lately however. Maybe the trend is moving away from SFHs?
Just so we're clear, I'm not trying to say the inner city is better than the suburbs or anything like that, only that over the last year apartments everywhere have done well for the most part.
Maybe the trend toward apartments like we've sen in Van, Tor, and Mtl is catching on in Calgary.