Quote:
Originally Posted by 6793026
SOOOO many people with a home now wants the rental helper... There was a 2.8 - 3.3 M unit which took 3 yrs to sell SPECFICALLY cause it didn't have a unit.
Other 2 places had a rental and got sold within 3 weeks (same street), same neighbour)
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Its not so much the WANT for a mortgage helper, but rather a need for many buyers. The property is simply way too expensive for many buyers to buy with their qualifying income.
With the rental unit, the banks can factor that in to approve the mortgage to really stretch that budget.
At 3mil, using very back of the napkin math. Assuming DP is take care of (600,000), you're left trying to qualify for a 2.4mm mortgage. That'll need an income of about $500,000 annually. Hard pressed to find that kind of income (reported, verifiable income).
The chasm between housing prices and realistic incomes has increased to epic proportions.