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Whether the market dips, crashes, or stabilizes remains to be seen. However people are definitely taking on much much more than they can afford. My GF and I both make good money as young professionals, but can't imagine taking on a mortgage that is 8 to 10 times our annual gross income. Shit, Vancouver's median household income is like $70,000, we are more than double that and struggling to find something decent in a range that we are comfortable with.
Remember that this forum's average income bracket is probably much higher than the Metro Vancouver average, and that the majority of people out there are just scraping by to make ends meet.
There is also the question of whether you should be buying a house that has two income helpers, and the ONLY way you can afford it is because of them. It's obviously not that big a gamble now because the rental vacancy rate is so low, but I still don't see it a wise decision that a homeowner is solely relying on their tenants to pay their mortgage on a monthly basis, that would freak me out.
Everyday I get mail from realtors displaying houses in the Main and Fraser areas going for $150,000 over asking and wondering who the hell is putting in these crazy bids. Are they young families? Locals downsizing from the westside? Overseas Asian buyers? People who are irrationally making purchases they shouldn't? Or is everyone a freakin millionaire in this city.
Either way, I refuse to be part of this madness.
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