New Home Buyer Question

[i-VTEC]

I have been working for almost 2 years(2 jobs) upon graduating.

I have no student loan debt, no car financing no lease

my annual salary, recently raised, to around $45,000

my gf, whos pretty much in the same situation as me and making $35,000 annually

we are thinking about buying a presale condo, 1 bedroom, around $320,000 range

and we have following questions:

1) since HST is cancelled, if the agreed price between me and the condo developer is $320,000 what % is the tax? still 12%?

2) getting a mortgage, We both are in the mid 20s, we don't really have a lot of credits (I do have MNBA CC and TD CC and goes with my gf) will banks approve us for a mortgage? even if it approve, it will likely to be really high interested rate? perhaps in the 10%? but if we were to get our parents to co-sign it, it will drop to like 3 or 4%? Also, does it just either me or my gf get the mortgage or we can both take the on load half, say I mortgage 50% respectively

3) benefit of first home buyer? i heard there are some benefits what are they?

4) should I get a Realtor?

5) insurance, I know for condos, a portion of monthly maintenance fee are for insurance. If I bought my condo at $320,000 and next year, earthquake hits, destroy my building, do I get full 100%(minus the depreciation value or based on the current market price) back?

Thanks

[Gnomes]

4. If you buy presale, ask the sales rep if you were to not have a realtor, would you get bonus discount, free parking spot, etc. If the sales rep says no, then find a realtor who will give you back 25% commission as finder's fee/self-referral fee.
Of the 100% commission, 50% goes to the presale rep, 50% to realtor.

[quasi]

I'll prequalify by saying I'm not an expert and if I'm incorrect in any of my assumptions please correct me.

1) Assuming it's same rules as it was before HST was brought in, 5% GST only.

2) They'll look at both of you combined.

3) You can get a one time exemption from property transfer tax which is a substantial chunk of change.

4) It's your first time, you probably should but then again I never did with my first purchase.

5) I'm sure it would depend on your insurance policy, can't answer the question.

A couple things you never mentioned that you need to account for.

-You'll have to pay property tax when you buy. It's based off the fiscal year for taxes. If you buy a place that's owned by someone already you pay them back the taxes left for that year that they've already paid.

-CHMC Insurance, if you put less then 20% down you have to pay this. It's on a scale and the rate changes depending on the percentage you put down and amortization.
More information found here CMHC Insurance | Mortgage Insurance | CMHC Mortgage Calculator | CMHC Insurance Rates

-Home insurance, you're going to want this so don't overlook the costs, you can get estimates before you buy.

[catalin]

I'm not an expert either and I can only speak from my experience.

Realtors complicate everything and they won't protect you if anything goes wrong. The lawyers do, which you have to see anyways to complete the paperwork. Bringing a realtor to house listed by another realtor is just a major bitchfest by the realtors when you're not looking. They're both after your money and the listing realtor can accept other offers without a realtor EVEN if your offer is accepted. Yes even with a signed contract. Real Estate board didn't do anything for me as I'm sure it happens a lot.

You should really try and buy something that's built already. It's better that they ask for your money then you asking for them to repair deficiencies.

Good luck
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[Gridlock]

Originally Posted by catalin

I'm not an expert either and I can only speak from my experience.

Realtors complicate everything and they won't protect you if anything goes wrong. The lawyers do, which you have to see anyways to complete the paperwork. Bringing a realtor to house listed by another realtor is just a major bitchfest by the realtors when you're not looking. They're both after your money and the listing realtor can accept other offers without a realtor EVEN if your offer is accepted. Yes even with a signed contract. Real Estate board didn't do anything for me as I'm sure it happens a lot.

You should really try and buy something that's built already. It's better that they ask for your money then you asking for them to repair deficiencies.

Good luck
Posted via RS Mobile

What?

Gnomes is talking about how even in a pre-sale situation, there is a realtor commission baked into the price. So, as a buyer, you never pay for a realtor, so if its baked in the price, why not use one? Or, get a cut back for not using one.

And if your realtor is fucking things up, then you need a better one.

There is a whole bunch of ways that selling a house can get fucked up. Yes, sometimes realtors screw it up, but sometimes you find someone that makes it simple.

[Bonka]

1. Purchase price + GST (5%) + Transitional Tax (2%, applicable if possession date is before April 1, 2015)

2. Go visit a bank or better yet, a mortgage broker. Mortgages are highly customizable based on the client's financial history and needs. Less than 20% down payment requires mortgage insurance. I have known clients who have had money "gifted" to them to top them up to circumvent bank requirements.

3. None significant. Lost the up to $10,000 rebate for new homes when HST was abolished. You can get up to $750 credit on your next year's tax return. You will avoid Property Transfer Tax if you're a First Time Buyer purchasing a property below $425,000, below $450,000 you get a partial exemption.

4. Up to you. I get the public perception with them because I work with them. Like any industry, many are horrible but there are actually good, honest ones out there that would be valuable to the client. Personally I would rather have a Realtor for a new development purchase - developers are interested only in one thing, your money. Don't expect those generally unlicensed sales representatives at the sales centres to look out for you - they either don't know how, don't know much and certainly don't make enough money to make it worthwhile for them to go "above and beyond.

Regarding commission rebates, doesn't hurt to ask but my experience is that most developers will not throw in "freebies" just because you don't have a Realtor. Gnomes hit the nail if you are inclined to want a kickback get a Realtor and have them rebate you back a portion. If you go this route, I would still find someone competent.

5. Are you talking about the insurer paying the owners out directly? The building is insured for replacement value. Best to contact the building's insurer directly.


Catalin,
Legally, even if a property has firm deal (accepted offer, subjects removed, deposit paid) until it has completed, technically another Buyer could put an offer on the same property (typically with a higher price) to force the Seller's hand. It opens up a huge can of legal worms but it can be done. In practice it's rare but with the right kind of Seller it could happen. At that point while legal it's up to one's ethics to determine that outcome.

Sounds like with your experience the Realtor tried to double-end the commission. There's plenty to say about that...

[catalin]

Thing is with me I have a tough time trusting people when it comes to buying homes. That what I was referring to earlier. Buying with a realtor on our side was frustrating. When we bought our latest home we only went through the selling realtor.

Our original home purchased 10+ years ago was without realtors all together after we were bumped out of a deal.
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[dinosaur]

You should get a realtor or talk to the on-site people at the development. They can answer all your questions above.

Better yet, talk to your bank...you know, the one giving you the money.

Also....10% interest?

If you are buying a presale, the sales people will hook you up with a mortgage broker who will do all your bidding for you.

Here are some rough numbers:

Condo: $320,000
20% Down payment: $64,000
Tax: $12,800
Total Mortgage: $268,800

Ballpark 3% interest 5-year fixed paid monthly over 25 years

Mortgage Payment: $1,272.09
Property tax (average): $100.00
Strata: $250.00
Insurance: $75.00

Total monthly housing payment: $1697.09 (remember...this is just the roof over your head...now lights...no tv...no internet...no phone)

Banks calculate your mortgage approval on your income and debt. It is best you have as little of debt as possible...preferably, none. Living at home, this should be easier and I wouldn't suggest buying something with debt. If you have money saved for a down payment...use some to pay off your credit cards, etc.

The banks want a max of 30% of your income to go towards housing...or 3 times your yearly income. If you have an income with your partner of $80,000 a year, you are looking at a pre-approval of $240,000. However, you need to have a substantial down payment.

I did a rough estimate using a Mortgage Affordability calculator and with NO down payment, NO debt, and $80k a year income....you are NOT approved. With NO debt, a $64,000 down payment, and 80k a year income...you are approved for a $370,000 mortgage.

Just a tip...I know it is easy to come to RS and ask a bunch of questions...but take it from someone who is a home owner and was pretty damn blind about the whole situation, you will need to know everything possible. I suggest you pay around with mortgage calculators...A LOT! Figure out not only what you SHOULD afford...but what you CAN afford. Just because the calculator say you can pay $2000 a month...doesn't mean you should.

I am not sure spending $2000 a month on a one bedroom apartment is a good idea when you can rent a nice one for $1000. Where are you looking at buying?

[Marshall Placid]

^
I think dinosaur is bang on.

Except, if you get the mortgage with your current bank and have banked with them for a long time, they will usually be much more lenient on you, giving you a larger mortgage and giving you a "4 times income" or "5 times income" monthly payment.

#2:
To confirm, it is you and your gf buying this unit right?

So, it is a "sealed-deal" type of relationship?

You have to think about what will happen in the future if the relationship does not work out.

Maybe, put it in writing/contract that if you guys do breakup, the purchased condo will be sold and the proceeds split evenly based on the amounts both of you put into the condo... just like a partnership agreement in a business.

You never know... better to be safe than sorry.

In regards to your parents.....

They won't be "co-signing" the mortgage.

What they'll be doing is being guarantors.

Unless... you want them to own part of the property, so it will be a condo owned by 4 people (you, your gf, and your parents).

#3:
You can use some of your RRSP savings to purchase a home and pay back your RRSP later. I forgot how this works, but if you have substantial RRSP savings, you can use them and not get penalized for withdrawing the RRSP, provided you pay back the RRSP within a set number of years.

#4:
For purchasing?

DEFINITELY get a realtor.

Also, the new development condos realtors are probably earning much less commissions than regular realtors.

Instead of the usually 3.5% of 3% commission, they are probably getting 1% or less, so don't expect the selling realtor to budge much.

#5:

There is a 10% to 15% deductible.

And yes, for replacement value ONLY.

So, if the cost for building that specific 1 bedroom apartment unit, you'll have to pay 10% to 15% first. Then, the insurance company will pay the rest. Your strata will be paying the insurance and you will pay the strata corp. If you want MORE insurance, you can buy more privately. Also, if you buy extra insurance, you can choose the "relocation" option, meaning that if the land that the apartment is built on is deemed "unbuildable", then the insurance company will pay extra to move you to another suitable "buildable" location.

Here is some advice:
In addition to applying for a mortgage with your "long-time" bank, also look for a mortgage broker like Dominion Lending.

[Selanne_200]

To the best of my knowledge, you can utilize the first home buyer's plan which allows you to withdraw up to 25,000 out of your rrsp to go towards your purchase. Those money will not be subjected to witholding tax nor will it goes towards your income for the year. You have 15 years to pay it all back and each year paying 1/15 of it.

The benefit to it is that the money you have in your RRSP is pre-tax money, so you're buying using money that has not been taxed yet and you'll only pay taxes on that money much later in your retirement and hopefully in a lower tax bracket.

Originally Posted by Marshall Placid

^
I think dinosaur is bang on.

Except, if you get the mortgage with your current bank and have banked with them for a long time, they will usually be much more lenient on you, giving you a larger mortgage and giving you a "4 times income" or "5 times income" monthly payment.

#2:
To confirm, it is you and your gf buying this unit right?

So, it is a "sealed-deal" type of relationship?

You have to think about what will happen in the future if the relationship does not work out.

Maybe, put it in writing/contract that if you guys do breakup, the purchased condo will be sold and the proceeds split evenly based on the amounts both of you put into the condo... just like a partnership agreement in a business.

You never know... better to be safe than sorry.

#3:
You can use some of your RRSP savings to purchase a home and pay back your RRSP later. I forgot how this works, but if you have substantial RRSP savings, you can use them and not get penalized for withdrawing the RRSP, provided you pay back the RRSP within a set number of years.

#4:
For purchasing?

DEFINITELY get a realtor.

Also, the new development condos realtors are probably earning much less commissions than regular realtors.

Instead of the usually 3.5% of 3% commission, they are probably getting 1% or less, so don't expect the selling realtor to budge much.

#5:

There is a 10% to 15% deductible.

And yes, for replacement value ONLY.

So, if the cost for building that specific 1 bedroom apartment unit, you'll have to pay 10% to 15% first. Then, the insurance company will pay the rest. Your strata will be paying the insurance and you will pay the strata corp. If you want MORE insurance, you can buy more privately. Also, if you buy extra insurance, you can choose the "relocation" option, meaning that if the land that the apartment is built on is deemed "unbuildable", then the insurance company will pay extra to move you to another suitable "buildable" location.

Here is some advice:
In addition to applying for a mortgage with your "long-time" bank, also look for a mortgage broker like Dominion Lending.

[Gnomes]

This is one of my favorite mortgage resource, rate, and calculator site:
Best Mortgage Rates 5-Year Variable - Compare Today's Current 5-Year Variable Rates - 2.50%

[kluk]

#2) Based on your age, income for the both of you and assuming a good credit I do not see why a bank would not lend to you. However, lending rules today have changed significantly over the past few years after the sub-prime mortgage crisis and banks are becoming much more strict and will require more proof of income. It all comes down to debt serviceability (TDS total debt service). This ratio has to be below 42% ideally and the lower the better. What this ratio tells the bank is from the income you and your gf makes, how much of it is currently channeling to your existing debt. If you do not have student loans, car payments etc then meting this requirement should not be a problem for you.

The interest rate for mortgages is based on the term you select (1year - 10 year mortgages). Right now the 5-year closed fixed is at 3.54% I believe.

You and your GF can split the mortgage payments in half but keep in mind that paying a mortgage is a long-term process (usually 20 years+) If you feel like she’s “the one” then sure why not. If not, you guys break up and shit hits the fan.

[finbar]

A rule of thumb, don't buy if you plan to move within 5 years.

[dinosaur]

Originally Posted by kluk

#2) Based on your age, income for the both of you and assuming a good credit I do not see why a bank would not lend to you. However, lending rules today have changed significantly over the past few years after the sub-prime mortgage crisis and banks are becoming much more strict and will require more proof of income. It all comes down to debt serviceability (TDS total debt service). This ratio has to be below 42% ideally and the lower the better. What this ratio tells the bank is from the income you and your gf makes, how much of it is currently channeling to your existing debt. If you do not have student loans, car payments etc then meting this requirement should not be a problem for you.

The interest rate for mortgages is based on the term you select (1year - 10 year mortgages). Right now the 5-year closed fixed is at 3.54% I believe.

You and your GF can split the mortgage payments in half but keep in mind that paying a mortgage is a long-term process (usually 20 years+) If you feel like she’s “the one” then sure why not. If not, you guys break up and shit hits the fan.

Just because you are young and have good credit it does not mean a bank will throw a $350k mortgage at you.

Here is something else you need to consider. If you have a down payment, they bank is going to ask you where you got it from. If it was a "gift", this will affect their decision. If this is money you have saved, they will ask for proof.

My first mortgage approval: I had a $30,000 down payment and made $98,000, good credit, no debt, etc. It was HARD trying to get a $300k mortgage and thats when they were handing them out like candy.

Don't be so sure that your income is good enough for approval. Its a sad sad day when $80k gets you shit. If you moved to bumpkinville USA, you'd be the richest person on the block.

[dinosaur]

Originally Posted by finbar

A rule of thumb, don't buy if you plan to move within 5 years.

No man....don't buy if you plan to move within 10 years. My home is worth the same as it was 5 years ago. Prices are not going up like they use to....and they won't be doing so for a LONG time.

My true thoughts: don't buy....rent. Wait until you are married and in your 30s to buy. Hang on to your freedom while you still have it.

[Energy]

Originally Posted by Marshall Placid

#2:
To confirm, it is you and your gf buying this unit right?

So, it is a "sealed-deal" type of relationship?

You have to think about what will happen in the future if the relationship does not work out.

Maybe, put it in writing/contract that if you guys do breakup, the purchased condo will be sold and the proceeds split evenly based on the amounts both of you put into the condo... just like a partnership agreement in a business.

You never know... better to be safe than sorry.

I don't know much about buying a new home but OP might at least want to know about the new Family Law Act where a person is considered a spouse if they have lived together in a marriage like relationship for a continuous period of at least two years.

So be careful if you guys break up (knock on wood).

[Marshall Placid]

Originally Posted by Energy

I don't know much about buying a new home but OP might at least want to know about the new Family Law Act where a person is considered a spouse if they have lived together in a marriage like relationship for a continuous period of at least two years.

So be careful if you guys break up (knock on wood).

Yes good point.

It's 2 years if I remember correctly for common-law spouse laws.

[B!tch]

Before you buy, spend sometime reading this blog.

Book and Weblog ? Authored by Garth Turner ? Greater Fool ? Authored by Garth Turner ? The Troubled Future of Real Estate

[skiiipi]

Originally Posted by dinosaur

Just because you are young and have good credit it does not mean a bank will throw a $350k mortgage at you.

Here is something else you need to consider. If you have a down payment, they bank is going to ask you where you got it from. If it was a "gift", this will affect their decision. If this is money you have saved, they will ask for proof.

My first mortgage approval: I had a $30,000 down payment and made $98,000, good credit, no debt, etc. It was HARD trying to get a $300k mortgage and thats when they were handing them out like candy.

Don't be so sure that your income is good enough for approval. Its a sad sad day when $80k gets you shit. If you moved to bumpkinville USA, you'd be the richest person on the block.

That is crazy....thanks for putting it into perpective.
That means w/ a single income of 100K+, it'll be hard to even get a 500K mortgage approved....
And to think any half decent home in Vancouver West side is in the 7 figure range.
Man vancouver is really not affordable for the working class...
Posted via RS Mobile

[Marshall Placid]

Originally Posted by skiiipi

That is crazy....thanks for putting it into perpective.
That means w/ a single income of 100K+, it'll be hard to even get a 500K mortgage approved....
And to think any half decent home in Vancouver West side is in the 7 figure range.
Man vancouver is really not affordable for the working class...
Posted via RS Mobile

It also depends on your down payment.

Obviously the chances of an approval increases with a 25% down payment as opposed 10% down payment.

If the OP's down payment is 25%, I really think, in my opinion, that he will get approved, provided that his credit score is good and has little or no current debt (like he says).

Add to that, if his parents are guarantors, I really don't see why he will be not be approved.

That is a key question here as the OP did not state what his down payment is.

[skiiipi]

Originally Posted by Marshall Placid

It also depends on your down payment.

Obviously the chances of an approval increases with a 25% down payment as opposed 10% down payment.

If the OP's down payment is 25%, I really think, in my opinion, that he will get approved, provided that his credit score is good and has little or no current debt (like he says).

Add to that, if his parents are guarantors, I really don't see why he will be not be approved.

That is a key question here as the OP did not state what his down payment is.

yea, but Dino mentioned that a home should be about 3X your income....
so say with a 120K/yr income, the home I should be buying is 360K.....
so to buy a 1million home in van (which isnt even a super nice home), your income should be about 330K/yr? man I got a long ways to go....

[Marshall Placid]

Originally Posted by skiiipi

yea, but Dino mentioned that a home should be about 3X your income....
so say with a 120K/yr income, the home I should be buying is 360K.....
so to buy a 1million home in van (which isnt even a super nice home), your income should be about 330K/yr? man I got a long ways to go....

What she meant, I am assuming, was that the monthly payment must be 3 times your mortgage monthly payment.

The monthly payment is the amount in question.

A $250,000 mortgage roughly requires a monthly payment of about $1,600 at most or $1,300 here https://www.rbcroyalbank.com/cgi-bin.../mpc/start.cgi .

So, your monthly salary should be $4,800 or $57,600 annually for $1,600 at a HIGH interest rate or $3,900 monthly or $46,800 annually at 3.69%.

If the OP has a down payment of $70,000, the OP and his gf should be able to service the monthly payments easily.

The big question is the down payment.

The down payment is used as:
1- a hedge against price fluctuations for housing prices.
2- for the bank to recuperate the loan amount if OP defaults on monthly mortgage payments

So, banks very much prefer a 25% down payment.

-------------
So, for a $1 million house, figuring a $800,000 mortgage...

Let say you have $200,000 down payment and this is from parents or from savings or whatever...

The monthly payment is $4,100.

So, you need a $12,300 salary or $147,600 annually for a $1 million house.
------------------

For a $320,000 condo, the OP should be able to get a loan based on his numbers.

He only needs a combined income of 2 people of $57,600 annually if he has a $70,000 down payment, which he meets (the salary requirement).

-------------

Buying a house is exciting stuff.

The OP, I think, should have a "fun" time trying to find his and his gf's perfect 1st house.

The rest are just details (based on his numbers he gave ot us).

[dinosaur]

No, it really is 3x your yearly salary.

My mother works for the banks and we talk a lot about mortgages, etc....especially as I am thinking about buying a second property.

Yes, Vancouver is stupid expensive and for a first time home buyer, purchasing a $500k house is not an option. This is why we have such an insane (good and bad) condo market here. They are all full of first time home buyers who have felt the need to buy something. Once you hit your mid-20s there is intense societal pressure to get into the housing market.

I bought a townhouse in Langley...and I really shouldn't have. Wrong time. Wrong position in life. Wrong market. Wrong location. I have it now and its fine....but its rented to tenants. If I could sell it, I would.

A first time home buyer literally needs to sell their soul....OR go to the bank of mom and dad. If you have a substantial down payment, it is a little easier but for the most part it will be a challenge. As I said previously, in 2007-2008 they were handing them out like candy....ZERO down payment FORTY year amortization LOW interest. We were all having a party toasting to how stupid it all was...and then it stopped.

Just as an aside in regards to purchasing property with an SO. This is where I was...together 9 years...why not buy a house. Signed the papers (mortgage was only in my name) and he walked 2 months later. Its shitty, but it happens. I am not saying if we were married that it would have been any different, but you need to be cautious.

I do think the market is to squishy right now....rent rent rent. Its cheaper and WAY more flexible. If you are set on buying....go SLOW and weight your options. Try to get as much as you can for your budget, even if it means staying away from new build. Also, try to get a place you can grow into instead of out of. How long will a one bedroom be sufficient? Do you want kids? when? If it is in within 8 years....go for a 2 bedroom because selling your condo after 5 will not turn out well...

[Marshall Placid]

Originally Posted by dinosaur

No, it really is 3x your yearly salary.

My mother works for the banks and we talk a lot about mortgages, etc....especially as I am thinking about buying a second property.

I was referring to the TDS, total debit service ratio used by mortgage specialists (reference: friends, mortgage brokers, mortgage "specialists", and of course, google), which is the key metric used in all of the mortgage calculators:

Google

This is # is basically how well you can service your debt (monthly payments), not how much total mortgage is approved.

Of course, by using this TDS ratio, the bank will arrive a TOTAL mortgage that they will approve.

It can go as high as 44% or even 55% of your total income.

Based on a 33% ratio: you need a $12,300 salary or $147,600 annually for a $1 million house, with a $800,000 mortgage and a $200,000 down payment.

---------------------
There is also another talked-about number that people talk about and what dinosaur is referring to, and that is how much you should borrow based on your income (income multiple calculation).

It's an old adage or "rule of thumb" that people talk about, and some banks use.

So, if you earn $100,000 a year, people would say: "you should only borrow up to 3 times what you earn for mortgages".

And, I think this is what dinosaur is referring to.

Of course, that is unrealistic in our Vancouver market, so the banks use my aforementioned TDS ratio much more than the income-multiple calculation, as proposed here:

Changing The Way We Think About Mortgages

If the 3 times income multiple calculation is used, then virtually nobody would be able to afford the $1 million dollar houses in Vancouver, and 80%+ (estimate) of DETACHED houses are $1 million or around there.

So, I am assuming that banks are using the TDS ratio much more than the income-multiple ratio.

Of course, this means many people are stretched very thinly for mortgage payments, and this is the reality.

-----------
In the end, I know I am not entirely correct.

I suspect the banks use a varying degree of the TDS ratio and the income-multiple ratio.

So, both dinosaur and my calculations are correct to... a varying degree.

Now, if only the OP himself would say something, assuming he subscribed to this thread.

[Gridlock]

People get porned up on MLS.ca and go and trip over themselves to buy. Let's raid the bank of Mom and Dad, you know, the generation that made all the money, they owe us!

I can't even point a finger because a month ago I started saying to Dino...fuck it, we live for free, but let's BUY.

Why because BUY means you can tell people you OWN and in Canada even more than the states that is the keys to a club of people that own and you are better than people that rent. Forget the fact that its your parents and the bank that actually own, and you just live there. Those are small details.

And you tour the show homes and they are all excited that they have two color palettes for you to choose from...and has anyone else noticed that those two color choices are like..the same damned thing? Off white with dark beige, or off white with light beige?

Yummy!

And you realize that you are getting sucked into a world where you are arguing about what configuration you want that 850 square feet to be and you say, wait a second...who actually wants to live in 800 square feet? This(to borrow a line) is a filing cabinet for young professionals. At that size, forget buying condo sized furniture, I need to buy condo sized cutlery.

And I have a strata council telling me what size my dog can be. That sounds like I'm an owner! Can I bbq on the deck that I have? I don't know, I better check the book of rules that came with the apartment that I begged, borrowed and guilted my way into with multiple banks, one of which was family to buy. Doesn't matter anyway, no one ever enjoys sitting on the deck on the 20th floor.

The questions you need to ask are: how much to live here if I buy it or how much to live here if I rent it? If you include any possible appreciation in your monthly buy it calculation, those two questions cover all scenarios.

I pay: mortgage(equity+interest)
prop. tax
strata fee
--------
=x payment per month
-appreciation upon sale/months lived in unit
=new total cost per month to live there

Or: I rent
=y payment per month

if the new total cost to live is so much better than y, then you'd be stupid not to sign up.

I'm going to tell you though, that the sales people at the show home are NOT going to help you with those calculations. Their calculations are: how many of these fucking apartments can I sell while the interest rates are in the gutter where people don't even ask how much they are anymore. My favorite new way to create a rush, "hurry and lock in on low interest rates!!!"

Does anyone ask, "what happens in 5 years when I have to hurry and renew on high(er) interest rates?"

There are so many questions surrounding the market right now. I'll tell you one thing...its not going up.

"People of Vancouver! Hear me. House prices are NOT going up. Things have changed since the last 10 years of housing stupidity."

What does that mean? There is no rush. Agents are still trying to create a 'rush'. Apartments are selling fast! Better get in there. I don't know what its like in Vancouver, but I'll tell you out here its not true. The showhome centres have been in their locations a LOT longer than they should have. One had to move out of the building they were demo'ing because they had to demo the building. I think moving was a plan B. They were supposed to be closed.

So prices aren't going to go further. Bank on that. Bank on rates going up. Why? Because the banks got spanked by rating agencies that are looking at the debt that people like you are signing up for to buy stupid houses and apartments for ungodly sums of money telling themselves that anything under 10% interest is a gift.

So we have unsustainable prices, that mean we have to get parents that have money. We have interest rates that are going up to deal with a debt issue. We have more Vancouver being leveled to build more condos every day.

Do you think we have a world where prices aren't possibly going to fall? Do you want to buy at the top of a peak?

So that's the logic on money.

Now we're going to talk about you.

You are young. You JUST graduated. Why do you want to lock into owning a shitty one bedroom apartment in Vancouver that means you can't travel for a great amount of time, you can't do fun things because you are house poor and you now need to work until you die to pay a mortgage.

Because your friends did the same fucking thing?