Can someone tell me what is happening with the real estate market here?

[Ilunga]

18 minutes ago, 4petesake said:

Nothing replaces having children! It’s a crime how broken our system of parental rights is. I hope that your battles have been or will soon be rewarded. It’s terrible how anger between two people invades a child’s life.

 

Your description of your life is a great example of why young people don’t necessarily have to pursue home ownership. Living your best life is equally important.

I have met so many people who have given up big chunks of their life to chase powder snow around the world.

That and the camaraderie of living in the tightnit community that is a ski resort is very addictive.

 

And just for the record I hold no animosity towards my ex in fact I will be eternally grateful to her,without her drive to have our son he would not exist.

And as I teach my son anger is a wasted emotion,it solves nothing,hurts one "soul",drives people away and only makes the problem worse.

[Down by the River]

2 hours ago, Jester13 said:

My mom was a nurse and dad a bank manager for their careers, and they still had to sacrifice for around 3 years before they could afford their first home, and they still needed help from their parents. My wife and I had no help, took transit for 10 years while we saved for school, went to school, started saving for our DP, and voila, we own a gorgeous place with a matching vehicle. 

 

Does it take longer than years past? Yes, for sure. But the world economy is so different now. There are those who complain, and those who find a way to make it happen for themselves. I've never been the self-defeating type, but I see many people who are, and they all have one thing in common: they never get ahead because they don't think it's possible. 

What was their first home?

[KoreanHockeyFan]

5 hours ago, Jester13 said:

Nice, good for you guys. Sounds like our path, square footage and all hahaha. 

 

Definitely speaking in general, but you do get my drift. But who says a Co.do down payment is 80k? A 400k condo down payment is 20k, so why not start there instead of wanting a detached home right away? Times have changed, but it's all relative on what someone can actually afford and what they're willing to work towards. But many young people do look at their friends or other people in general and wanting a detached home, and they don't even end up starting the process of small sacrifices for big rewards. I speak to such young people in their 20s and they're crying about this, but I keep telling them, "You're in your 20s." It's not easy, but it's certainly possible, as long as they want it bad enough. 

I share the same sentiments with the millennials on this thread pointing out how the financial landscape we're starting out in is much more difficult than previous generations, but I do agree with your point about how some of us seem to foolishly expect to own a detached home right away. 

 

But then again, I have my biases - I'm of the belief that increased urbanization is just going to force a lot of us millennials to settle for a condo throughout the early half of our adulthood. Personally, I'm completely fine with living in a condo, I actually prefer it over a detached home. 

[4petesake]

1 minute ago, KoreanHockeyFan said:

I share the same sentiments with the millennials on this thread pointing out how the financial landscape we're starting out in is much more difficult than previous generations, but I do agree with your point about how some of us seem to foolishly expect to own a detached home right away. 

 

But then again, I have my biases - I'm of the belief that increased urbanization is just going to force a lot of us millennials to settle for a condo throughout the early half of our adulthood. Personally, I'm completely fine with living in a condo, I actually prefer it over a detached home. 

People starting out now are learning to have different expectations and that’s not a bad thing. With urbanization comes more of a downtown village vibe. No, or less commuting, no house maintenance, and more of a day to day live life in the moment mentality. Every generation is different and that’s the way it should be!

[Russ]

8 hours ago, janisahockeynut said:

Alot of these places are selling with no conditions attached.............straight cash, no mortgage

I don't know if its straight cash, but I think everyone already has their financing in order from brokers so they can go in and get no inspections, etc. done and just slap down their offer and pray it gets accepted.  

 

10 hours ago, Jester13 said:

Nice, good for you guys. Sounds like our path, square footage and all hahaha. 

 

Definitely speaking in general, but you do get my drift. But who says a Co.do down payment is 80k? A 400k condo down payment is 20k, so why not start there instead of wanting a detached home right away? Times have changed, but it's all relative on what someone can actually afford and what they're willing to work towards. But many young people do look at their friends or other people in general and wanting a detached home, and they don't even end up starting the process of small sacrifices for big rewards. I speak to such young people in their 20s and they're crying about this, but I keep telling them, "You're in your 20s." It's not easy, but it's certainly possible, as long as they want it bad enough. 

Didn't the Feds put in a rule a few years ago with that stress test to make it so it had to be a 20% downpayment or you couldn't get a mortgage?

[Russ]

4 hours ago, KoreanHockeyFan said:

I share the same sentiments with the millennials on this thread pointing out how the financial landscape we're starting out in is much more difficult than previous generations, but I do agree with your point about how some of us seem to foolishly expect to own a detached home right away. 

 

But then again, I have my biases - I'm of the belief that increased urbanization is just going to force a lot of us millennials to settle for a condo throughout the early half of our adulthood. Personally, I'm completely fine with living in a condo, I actually prefer it over a detached home. 

Yea we are far different as millenials.  I want to be away from people, can't stand having people beside, below and above me.  

[JM_]

15 hours ago, I.Am.Ironman said:

Depends on the career. Some careers are best started in urban areas and wages have not increased at the same rate as real estate. Further to that point, tuition for said career training has increased exponentially. So young people are entering their careers with more debt and a lower wage to living expense ratio.

 

20-30 years ago, dentists and doctors were graduating with an average of probably 15-30k in debt (inflation would probably double the value in today's dollars). Now that number is between 150-300k. Back then a bachelor's degree meant a good job, something that has clearly changed. I'm not as familiar with how things have affected trade school tuition.

 

IIRC you are a lawyer by trade? How has it affected new law graduates? I'm not as familiar with law school tuition. I have a friend who has now been practicing corporate law for about 3-4 years in a major city and is only now thinking of being able to buy a condo.

 

Quite a few careers are best started in rural (and cheaper) areas but that real estate price gap between rural and metropolitan makes the jump pretty hard. The median house price in Salmon Arm is $400K (quick google search so stand to be corrected) vs the following graph (average price is on the left, median is on the right).

 

^ this is all true, and good point about the salaries too, it is out of reach for many people. 

 

So whats the option if having a house and yard is the critical thing for you? you have to do what most of our relatives who immigrated here did, what others did before and what new immigrants do - find a place where you can buy one and go there. 

 

If you do a search on realtor.ca for homes under 500k you will find 1000s of them. Right now you can get a 10 year mortgage locked in for 2% or less. Its out there for you if you really want it.

 

Just maybe not in the lower mainland. 

 

 

Edited March 8, 2021 by Jimmy McGill

[JM_]

7 hours ago, 4petesake said:

People starting out now are learning to have different expectations and that’s not a bad thing. With urbanization comes more of a downtown village vibe. No, or less commuting, no house maintenance, and more of a day to day live life in the moment mentality. Every generation is different and that’s the way it should be!

which is pretty much how it is in most cities around the world. Vancouver is just catching up to it. If I really wanted city life tho I'd probably be in Montreal where its still a lot cheaper to buy. 

 

My wife has family in Italy near Milan, and none of her cousins e.g. have the kind of expectations of big homes in the city, they are all either in apartments or if they do have land its out in the sticks. Italian sticks, so its really nice, but still. 

[Gurn]

11 hours ago, I.Am.Ironman said:

I'm picking up what you're putting down but I think millennials get tired of baby boomers or Gen x's, who benefited from some of the most advantageous economic conditions in history, saying it's generational laziness or that it just takes sacrifice (which it certainly does).

Old people had to walk to school, in the snow, uphill, both ways.

 

[Boudrias]

When will the lid get blown off the corruption involved in money laundering in BC? Laundering this money into real estate escalated costs that everyone pays. Organized crime, cartels and even possible terrorist groups are involved. Corruption of our politicians and judiciary are also likely. It started with the BC Liberals, the Dippers started to expose it and it is now quiet. Possible federal government involvement thru CISIS and the RCMP. Have we ever seen a politician or bureaucrat do jail time in this province?

[Jester13]

10 hours ago, Down by the River said:

What was their first home?

A small, dated detached home, but they also had some help from family. And then their next place was nicer, next one nice still,  etc. Granted, first homes these days are likely condos, but then the next place is nicer, next one nicer still. So all this goes to show is that getting into the housing market pays off as a solid investment over the years, but many complain because their first home is not their ideal dream home. 

 

I know people who could easily buy a three bedroom condo for their family of 4 (two infants) for ＄350k. Yes, it's old, but their interest+condo fee+property tax for the year turns out to be ＄1115/month. They won't sacrifice in-suite laundry and not having a yard and a bed for parents to sleep in when they come to visit once a year. Instead they rent a house for＄2300/ month. 

 

They will spend an extra＄72k in a five year term for in-suite laundry. With principal, they could be ahead＄120k. And they have complained that they can't afford a house. 

 

Quote

Didn't the Feds put in a rule a few years ago with that stress test to make it so it had to be a 20% downpayment or you couldn't get a mortgage?

Anything under 500k can put down the minimum 5%. If someone can't save 20k for a DP and pass the stress test then they shouldn't think they should own a home. As I said earlier in this thread, owning a home is not a right, it's an investment. There are many who know this and many who don't. 

[JM_]

8 minutes ago, Boudrias said:

When will the lid get blown off the corruption involved in money laundering in BC? Laundering this money into real estate escalated costs that everyone pays. Organized crime, cartels and even possible terrorist groups are involved. Corruption of our politicians and judiciary are also likely. It started with the BC Liberals, the Dippers started to expose it and it is now quiet. Possible federal government involvement thru CISIS and the RCMP. Have we ever seen a politician or bureaucrat do jail time in this province?

so.... John Horgan, global crime fighter, was your expectation? 

[KoreanHockeyFan]

3 hours ago, Russ said:

Yea we are far different as millenials.  I want to be away from people, can't stand having people beside, below and above me.  

Haha, fair enough. I guess it also depends on your upbringing as well. My parents didn't immigrate here with a lot of money, so saving money and time on daily commutes by living in a cheap apartment within the city was a must. I've never really gotten acclimated with the detached housing lifestyle. 

 

25 minutes ago, Jester13 said:

Anything under 500k can put down the minimum 5%. If someone can't save 20k for a DP and pass the stress test then they shouldn't think they should own a home. As I said earlier in this thread, owning a home is not a right, it's an investment. There are many who know this and many who don't. 

The 20% down payment rule applies in the case you don't want to fork over the cash for mortgage insurance. But are banks even willing to give you a mortgage with a 5% down payment - I feel like you'd probably have to go to an alternative lender for that, which would likely come with outrageous interest rates. 

 

The obsession with property investments is a growing problem though. One of the unintended consequences of that mortgage stress test was that it pushed a lot of borrowers to unregulated private lenders, especially in Ontario. 

Edited March 8, 2021 by KoreanHockeyFan

[Boudrias]

12 minutes ago, Jimmy McGill said:

so.... John Horgan, global crime fighter, was your expectation? 

Horgan's AG was doing a good job exposing some of this stuff and now no new info. Why wouldn't we have an expectation that this would be a top file for the government? Politically wouldn't appeal to the NDP as it would likely expose some dirty BC Lib politicians or some of their supporters. Your comment is somewhat glib considering what it has cost the province and the people who likely pay higher real estate prices as a result.  

[JM_]

2 minutes ago, Boudrias said:

Horgan's AG was doing a good job exposing some of this stuff and now no new info. Why wouldn't we have an expectation that this would be a top file for the government? Politically wouldn't appeal to the NDP as it would likely expose some dirty BC Lib politicians or some of their supporters. Your comment is somewhat glib considering what it has cost the province and the people who likely pay higher real estate prices as a result.  

its glib because of the reality of it, there's really nothing anyone can do about the rising home prices in Vancouver or TO e.g. We're in a global marketplace and money can go anywhere.

 

The corruption stuff is important sure, but its a red herring in terms of expecting it to lower home pricing or create more product.

 

Where Horgan and others are dropping the ball is in encouraging new development, the crime stuff is as old as the bible. 

[KoreanHockeyFan]

8 minutes ago, Jimmy McGill said:

its glib because of the reality of it, there's really nothing anyone can do about the rising home prices in Vancouver or TO e.g. We're in a global marketplace and money can go anywhere.

 

The corruption stuff is important sure, but its a red herring in terms of expecting it to lower home pricing or create more product.

 

Where Horgan and others are dropping the ball is in encouraging new development, the crime stuff is as old as the bible. 

I somewhat agree, but don't forget about the rich retirees who yell "not in my damn backyard" everytime a developer asks the City to amend the neighbourhood's zoning by-laws to build a new apartment building with affordable housing. 

 

A lot of people want more affordable housing in Vancouver, but a lot of those same people are selfish and don't want their property values to decrease because of all of the allegedly troublesome poor people that would live around them. 

 

 

Edited March 8, 2021 by KoreanHockeyFan

[JM_]

Just now, KoreanHockeyFan said:

I somewhat agree, but don't forget about the rich retirees who yell "not in my damn backyard" everytime a developer asks the City to amend the neighbourhood's zoning by-laws to build a new apartment building with affordable housing. 

 

A lot of people want more affordable housing in Vancouver, but a lot of those same people are selfish and don't want their property values to decrease because of all of the alleged troubling poor people that would live around them. 

 

 

for sure the nimby's are a problem. But thats where guys like Horgan need to show some spine.

 

One thing we've done very little of is encourage co-op housing. Its such a good model to make homes accessible and affordable for people, we need to greatly expand that to get young people into the market. Our local gov'ts are sitting one something like 8 billion in land value as well. 

[Jester13]

31 minutes ago, KoreanHockeyFan said:

The 20% down payment rule applies in the case you don't want to fork over the cash for mortgage insurance. But are banks even willing to give you a mortgage with a 5% down payment - I feel like you'd probably have to go to an alternative lender for that, which would likely come with outrageous interest rates. 

 

The obsession with property investments is a growing problem though. One of the unintended consequences of that mortgage stress test was that it pushed a lot of borrowers to unregulated private lenders, especially in Ontario. 

Yeah, if you don't put down 20% then you pay mort insurance of around $10k'ish. But people can absolutely get a mort with the minimum 5% for anything below 500k. The stress test is a good thing, as it helps mitigate, at least a little, people who would be stretched too thin to getting something they may not be able to afford. The housing market and industry is absolutely insane, but all of the people I went to uni with can easily afford something. Many know how to make it happen whereas others simply don't have the basic knowledge of how interest rates and mortgages even work in the first place, and yet they still complain about not being able to get ahead. 

[J.I.A.H.N]

4 hours ago, Russ said:

I don't know if its straight cash, but I think everyone already has their financing in order from brokers so they can go in and get no inspections, etc. done and just slap down their offer and pray it gets accepted.  

Not 100% sure, butI think bank want inspections, so they are lending money for places that are not full of damage and not worth the money they are lending...aka cracked foundations, new roofs required, etc........I could be wrong, but I think they want that protection for their money...........sounds reasonable I think

4 hours ago, Russ said:

 

Didn't the Feds put in a rule a few years ago with that stress test to make it so it had to be a 20% downpayment or you couldn't get a mortgage?

You can do it for less, but have to have a lenders insurance on it......can't remember the name of it

[KoreanHockeyFan]

2 minutes ago, Jester13 said:

Yeah, if you don't put down 20% then you pay mort insurance of around $10k'ish. But people can absolutely get a mort with the minimum 5% for anything below 500k. The stress test is a good thing, as it helps mitigate, at least a little, people who would be stretched too thin to getting something they may not be able to afford. The housing market and industry is absolutely insane, but all of the people I went to uni with can easily afford something. Many know how to make it happen whereas others simply don't have the basic knowledge of how interest rates and mortgages even work in the first place, and yet they still complain about not being able to get ahead. 

I can't believe there wasn't a course on financial literacy when I was in high school - this stuff should be mandatory to learn for kids.