REVscene - Vancouver Automotive Forum

JDMDreams · 07-13-2022, 01:05 PM

Also more rate hike = higher chance and closer you get to recession even though the gov isn't admitting it. Once they realized they fucked up and cause a recession they will slash rates again because eKoNomiEz.

And this is assuming nothing bad happens, ww3, Coronas wave 20 China shuts down. Better enjoy the best summer ever while you can.

I see more negatives brewing than any positive news.

Traum · 07-13-2022, 01:18 PM

I think the general sentiments are that hyperinflation / stagflation is more damaging and difficult to manage than a recession, and that is why we are seeing the on-going interest rate hikes. Furthermore, as it has been pointed out multiple times recently in this thread, realistically speaking, even rates in the 4 - 5% shouldn't really be considered as "really high".

EvoFire · 07-13-2022, 01:22 PM

BoC is always behind in terms of rate hikes and slashes. Don't expect rates to come down until we are well into the start of a recession. Do expect BoC to over compensate both ways so we see a high peak that we don't need and then a low trough after.

And what Tapioca said. There's more ppl that can afford and want a house than there are supplies. Even if you half that amount as some of those 6 fig earners are in a stable relationship and tick some more off due to them not wanting a house, there's still easily 35k couple vs only 14k in sales a year.

If you own a sliver of land in GVRD in Langley and west wards, you are probably safe.
Condos are less safe.

I found the documents for our mortgage. We started at 1.1% and now at 3.35%. Trigger rate is 3.86%, we have another 0.5 hike until we get margin called.

Alpine · 07-13-2022, 01:31 PM

The US Market is already pricing in rate cuts in 2023...

Spoon · 07-13-2022, 02:12 PM

Quote:

Originally Posted by EvoFire

I found the documents for our mortgage. We started at 1.1% and now at 3.35%. Trigger rate is 3.86%, we have another 0.5 hike until we get margin called.

Never heard of a margin call on a mortgage before.

Is that when the bank deems your debt level too high to service the debt? I assume you'd need to pay a lump sum to reduce monthly payments?

JDMDreams · 07-13-2022, 02:26 PM

^ I think he means trigger rate. Your bank will never do that. As long as you make payments, you can literally buy a house and quit your job tomorrow they don't care as long as they get their payment. You can gamble, only fans, as long as payments are on time they don't give a shit.

PeanutButter · 07-13-2022, 02:31 PM

Quote:

Originally Posted by Spoon

Never heard of a margin call on a mortgage before.

Is that when the bank deems your debt level too high to service the debt? I assume you'd need to pay a lump sum to reduce monthly payments?

I think it has to do when interest rates increase, more of the payment goes to the interest, but the original payment amount doesn't change, but if the rates continue to rise then the original payment doesn't cover all of the interest so it triggers a re-evaluation and an increase in the original payment is ordered.

So if your original payment was $500/month mortgage and you get triggered, you might be re-evaluated at like $600/month. Not sure if you can do a lump sum or not. (don't quote me on this though)

MarkyMark · 07-13-2022, 02:43 PM

Quote:

Originally Posted by Traum

I think the general sentiments are that hyperinflation / stagflation is more damaging and difficult to manage than a recession, and that is why we are seeing the on-going interest rate hikes. Furthermore, as it has been pointed out multiple times recently in this thread, realistically speaking, even rates in the 4 - 5% shouldn't really be considered as "really high".

Wouldn't anything considered "really high" going by historic records put most people on the street these days?

JDMDreams · 07-13-2022, 03:41 PM

Don't forget mortgages were like $150k when rates were "high" Vs $1.5m mortgages people have now. So run and math on $1m at 5% and let us know.

CivicBlues · 07-13-2022, 03:43 PM

So with the Bear Market and all anyone else thinking of just putting their excess cash into lump sum payments to soften the blow?

Tapioca · 07-13-2022, 03:47 PM

https://censusmapper.ca/maps/3348#10/49.1911/-122.9398

Here's an updated median household income tool based on the latest census data. See how you measure up against your neighbours and get some insight into your future neighbours if you're shopping for a new home.

For the record, our current neighbourhood's median income is $117K, but you wouldn't know it considering all of the Teslas and late model Euro cars roaming around. Our old neighbourhood in Port Moody has a median household income of $156K which is full of F150s and Subarus and other CUVs in driveways.

JDMDreams · 07-13-2022, 03:52 PM

I'm putting some extra cash as lump sums monthly to shorten amortization and saving interest. But I am still holding cash incase of recession and buying opportunities come up.

sonick · 07-13-2022, 04:01 PM

+1 holding cash for flexibility to buy in if needed, or if not simply use that to supplement the increasing monthly mortgage payments.

CivicBlues · 07-13-2022, 04:02 PM

Quote:

Originally Posted by Tapioca

https://censusmapper.ca/maps/3348#10/49.1911/-122.9398

Here's an updated median household income tool based on the latest census data. See how you measure up against your neighbours and get some insight into your future neighbours if you're shopping for a new home.

For the record, our current neighbourhood's median income is $117K, but you wouldn't know it considering all of the Teslas and late model Euro cars roaming around. Our old neighbourhood in Port Moody has a median household income of $156K which is full of F150s and Subarus and other CUVs in driveways.

Household income? In the Lower Mainland? Dubious at best. Like the 40K households in Richmond? or the 40K for some reason at Macdonald and King Ed?

Also huuuge different in buying power if you're a Millenial couple making 150K vs a Boomer couple making the same amount, provided they got into the market at the same age.

PeanutButter · 07-13-2022, 04:16 PM

^Which is why i'm happy it's median income and not average income. It should be fairly accurate since they're using median income.

Hondaracer · 07-13-2022, 04:19 PM

RS Baller squad unite

Bitching about rates when closer to buying a second place than losing the first? Lol

CivicBlues · 07-13-2022, 04:23 PM

Quote:

Originally Posted by PeanutButter

^Which is why i'm happy it's median income and not average income. It should be fairly accurate since they're using median income.

Sure, but it's not a tool to use to gauge buying power. Not if you live in a neighbourhood of "housewives" and "students". Or a neighbourhood full of retired boomers with paid off houses.

PeanutButter · 07-13-2022, 04:23 PM

Does anyone know what's going on with this washroom. It seems to be only half tiled and I can't see a shower faucet. is this just a soaker?

https://www.redfin.ca/bc/burnaby/220...home/155279756

Hondaracer · 07-13-2022, 04:29 PM

Lol just tile up the whole wall and it looks 10 times better.

Looks like just the soaker as you have the walk in shower I guess

PeanutButter · 07-13-2022, 04:41 PM

Oh duh, I didn't even notice the stand up shower on the left.

Alpine · 07-13-2022, 04:42 PM

Ugh that little row of accent tile above the grey tiles over the tub...

sonick · 07-13-2022, 05:13 PM

Lol reminds me of a house I saw while shopping last year where the master bedroom has a soaker tub, no shower, nothing else.

Didn't realize it during the open house until we were deciding if we were to put an offer in or not.

We did offer with the pricing expecting to completely redo the master bathroom

Great68 · 07-13-2022, 05:39 PM

Quote:

Originally Posted by CivicBlues

. Or a neighbourhood full of retired boomers with paid off houses.

Kind of eye opening that we make more household income than some of the most expensive areas of Victoria (IE Uplands, Ten Mile Point, Oak Bay, kind of like the "Shaughnessy" areas of Vancouver). Boomers and generational wealth is tough to compete against.

westopher · 07-13-2022, 06:13 PM

Yep. Somehow with a higher couple household income than any neighbourhood median income, I'm struggling to buy a 2 bedroom condo. At least prices will come down 100k and I'll end up paying $500 a month more than when the home was 100k more. Everything is going great.

Tapioca · 07-13-2022, 06:38 PM

I didn't post that median income link to make a point about buying power.

My point was that it's a good way to see who is living in your neighbourhoods - boomers, foreigners, or working professionals who make their incomes locally.

Look at the areas in dark purple - they're spread out all across the Lower Mainland, rather than say Douglas Park or Arbutus Ridge.