Vancouver's Real Estate Market

[MarkyMark]

Apparently that's the new reality, unless you're willing to work 7 days a week and never see your family you're a lazy cunt who doesn't want to do what it takes to stay afloat. You can take that lifestyle and shove it up your ass. Enjoy your house, as well as the early grave you dug yourself being sleep deprived for 40 years working yourself to death, your kids will appreciate the early inheritance.

[Gerbs]

Originally Posted by Traum

Wifey and I are in a similar situation where we want to upsize the living quarters, and our combined earnings are nowhere near what you are pulling in. We don't want to leave CoV because our family and support base are all in Vancouver. But our salaries are really not affording us any good options.

Just curious how much would you have to be earning alone or with someone before you can start affording good options? I'm trying to save for a downpayment for the next 5 - 6 years I hopefully have enough ($120-180k?) by the time i'm like 27. I have no idea what you really need to earn to have good options.

[CharlesInCharge]

Originally Posted by 68style

Yah I admire your perseverance Gh0st.............. but that's the epitome of buying into a life where the only thing you're doing is working to pay for a place to live. There's a lot more to the world. To each their own, but personally I'd shoot myself in the face before I'd work 7 days a week just to afford a condo and drive an appliance. I'd definitely look into moving somewhere else or figure out what I really wanted in life anyway, as I don't personally get ANY satisfaction about sitting back and thinking I made it because I own a box in an vastly over-priced and over-hyped city.

Its called involuntary slavery. At my last job in downtown (beautiful British Colony), 90% of the ~150 shift workers were temporary foreign workers. They came from countries like Brazil were life is cheap as you can get murdered for a material possession or Japan which has a high suicide rate and people working themselves to death.
That kind of model will be implemented in all colonies... its the Maxtrix of your own enslavement.
Watch as once most of the population is locked down slaving away at their mortgage, financial melt down... and there goes decades of hard work and time stolen from ones life.

Spoiler!

[Gerbs]

Originally Posted by Gh0st

On the way home I made an executive decision to straighten out my life. I went home listed my car, lost 10k on the car, picked up an additional job,

What'd you buy as your fun car then lost 10k on lol

[hud 91gt]

Walked by this little coffee shop on 4th and Vine. Mind you, it was never my favourite.

[yray]

Originally Posted by Gh0st

I work every single day of the week, making more money than before - but funny how it works,.

How are your taxes...

[lowside67]

Originally Posted by Gerbs

Just curious how much would you have to be earning alone or with someone before you can start affording good options? I'm trying to save for a downpayment for the next 5 - 6 years I hopefully have enough ($120-180k?) by the time i'm like 27. I have no idea what you really need to earn to have good options.

There are a million mortgage calculators out there that can tell you how much you need to earn to qualify for a given mortgage. Assuming you would put 20% down and saved $180k up, that's a $900k place.

If you bought a house for $900k (ie PoCo or Surrey/Delta), got a mortgage for 3.0% over 30 years ($720k mortgage), your payment would be about $3k a month. Assuming $500/month for utilities, property tax, and insurance you would need a household income of $120k/yr to qualify. This assumes you have NO other debt. Other payments such as car payments, student loans, etc would mean you'd need even more income to qualify.

-Mark

[Traum]

Originally Posted by Gerbs

Just curious how much would you have to be earning alone or with someone before you can start affording good options? I'm trying to save for a downpayment for the next 5 - 6 years I hopefully have enough ($120-180k?) by the time i'm like 27. I have no idea what you really need to earn to have good options.

Mark has already covered the hard numbers for you, so there is little point for me to add on that matter. But I'll add the reminder that with the way current Vancouver housing prices are heading, the purchase price that you end up paying when you finally buy a few years down the line is almost certainly going to be a moving target trending up, up, and further UP. 2 corollaries to this is, the location you're considering will probably start sliding further away into the east / southeast / south, and the final purchases home size will be smaller than your current target home size.

[Hakkaboy]

Originally Posted by lowside67

There are a million mortgage calculators out there that can tell you how much you need to earn to qualify for a given mortgage. Assuming you would put 20% down and saved $180k up, that's a $900k place.

If you bought a house for $900k (ie PoCo or Surrey/Delta), got a mortgage for 3.0% over 30 years ($720k mortgage), your payment would be about $3k a month. Assuming $500/month for utilities, property tax, and insurance you would need a household income of $120k/yr to qualify. This assumes you have NO other debt. Other payments such as car payments, student loans, etc would mean you'd need even more income to qualify.

-Mark

Is that seriously what they are using to calculate if you qualify? 3% over 30 years?

[Traum]

I think Mark is an expert in this area, isn't he? From what I've gathered in the past, 30 years mortage is becoming more common though (even though I personally think it is ridiculous)

As home prices climb, taking 30 years to pay off mortgage is becoming new norm in Toronto and Vancouver | Financial Post

[lowside67]

Originally Posted by Hakkaboy

Is that seriously what they are using to calculate if you qualify? 3% over 30 years?

30 year mortgages are quite common if you don't need CHMC insurance. And 3% is just an estimate of a 5-year fixed rate - technically you will need to qualify at an even higher rate than that.

-Mark (who is a commercial banker - not an expert on retail mortgages, but it's pretty simple and formulaic)

[Tapioca]

Nothing wrong with a 30-year mortgage if you invest the difference in higher yielding investments, or you are having kids and have a reduced household income for a couple of years, or are making prepayments and are using the 30 year amortization as a security blanket in case shit hits the fan in your job, gig, etc.

If you are taking a 30 year amortization because you are at the absolute limit of your affordability, you're doing it wrong.

[lowside67]

A lot of people (like us) also use a 30-year am because a significant portion of their income is in an annual or quarterly bonus. In my personal case, 1/3 of my income is paid in one shot in December. A 30-year am keeps payments reasonable through the year, then I can throw a big chunk against it in one shot if I like (though we are no longer paying our mortgage down accelerated and are instead focusing on using our left over RRSP space, then will return to mortgage repayment as a focus).

-Mark

[Hakkaboy]

what i meant is that you guys (or lenders) are assuming that the average interest rate for the next 30 years will be 3%.

That's pretty wishful thinking IMHO and probably qualifies people who can't afford a real interest rate hike.

[hud 91gt]

Originally Posted by Hakkaboy

what i meant is that you guys (or lenders) are assuming that the average interest rate for the next 30 years will be 3%.

That's pretty wishful thinking IMHO and probably qualifies people who can't afford a real interest rate hike.

Correct me if i'm wrong, but your mortgage is based on your term not your amortization like the US (As your term is your amortization period). Every time your term is up you need to re-qualify. Which is why it is a little scary where people have maxed themselves out at ultra low interest rates.

[Hondaracer]

Originally Posted by Hakkaboy

what i meant is that you guys (or lenders) are assuming that the average interest rate for the next 30 years will be 3%.

That's pretty wishful thinking IMHO and probably qualifies people who can't afford a real interest rate hike.

Kinda what the additional stress tests lately try to prevent I believe

[Gerbs]

Originally Posted by yray

How are your taxes...

You make it sound like he makes more money by working less

[Gerbs]

Originally Posted by lowside67

There are a million mortgage calculators out there that can tell you how much you need to earn to qualify for a given mortgage. Assuming you would put 20% down and saved $180k up, that's a $900k place.

If you bought a house for $900k (ie PoCo or Surrey/Delta), got a mortgage for 3.0% over 30 years ($720k mortgage), your payment would be about $3k a month. Assuming $500/month for utilities, property tax, and insurance you would need a household income of $120k/yr to qualify. This assumes you have NO other debt. Other payments such as car payments, student loans, etc would mean you'd need even more income to qualify.

-Mark

This sounds pretty doable if your fortunate enough to live at home. Even more doable with dual-income. Thanks for the quick explanation. Will be paying off my student loan in 2 days and still have like <$10k to go before I graduate.

[BIC_BAWS]

Originally Posted by Gerbs

You make it sound like he makes more money by working less

You kind of do make a similar but less amount of money, when you work less. Depending on the tax bracket. Like the after tax of working 60 hours per pay period, is roughly the same as working 80 hours. Your take home cash is largely hindered by taxes.

Sent from my Pixel XL using Tapatalk

[hud 91gt]

I love when people argue that. So very incorrect.

The reason you probably think it works that way is your company most likely taxes you each month on a monthly average. If you all of a sudden make twice your wage one month due to over time, they will probably tax you (On that cheque) as if every month was that high. meaning a much higher tax bracket then reality. It all evens out at year end, or you will just get a refund.

Take a peak how your income taxes work, federal and provincial.

[lowside67]

Originally Posted by Hakkaboy

what i meant is that you guys (or lenders) are assuming that the average interest rate for the next 30 years will be 3%.

That's pretty wishful thinking IMHO and probably qualifies people who can't afford a real interest rate hike.

I don't think anybody thinks rates will be 3% for the next 30 years. A huge percentage of the Canadian market takes 5-year fixed terms though, so you have 3% for the first 5 years; after that, a lot can happen.

When it's time to renew, maybe rates are 4 or 5%, but you have paid down a bit, the house goes up a bit, you are probably earning at least 10% more income (basically just 5x cost of living raises), there are options.

-Mark

[lowside67]

Originally Posted by Gerbs

This sounds pretty doable if your fortunate enough to live at home. Even more doable with dual-income. Thanks for the quick explanation. Will be paying off my student loan in 2 days and still have like <$10k to go before I graduate.

Saving $200k in after-tax dollars is no joke. To do it in 5 years you'd have to be earning $60k/year right out of school and save literally every penny you ever earned (ie not realistic, even if you were living at home).

-Mark

[Rallydrv]

Weird nobody posted this

https://www.google.ca/amp/www.cbc.ca/amp/1.4422668

[welfare]

Originally Posted by Rallydrv

Weird nobody posted this

https://www.google.ca/amp/www.cbc.ca/amp/1.4422668

Yang said she suspects some of the outrage stems from racism

Uh huh. I'm sure people would be just as upset if the land were being used for farming and not giant low tax mansions.

[yray]

Originally Posted by Gerbs

You make it sound like he makes more money by working less

depends on how much he is into the next bracket

Of course theres TFSA and RRSP