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

[Jester13]

5 minutes ago, KoreanHockeyFan said:

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. 

I 100% agree with that. Honestly, it's not that young people can't get ahead in the current situation, it's that often those who don't are not financially literate to make it all happen. Saving money is not a difficult thing to do, if you are willing to have some delayed gratification with a plan. 

[inane]

1 minute ago, Jester13 said:

I 100% agree with that. Honestly, it's not that young people can't get ahead in the current situation, it's that often those who don't are not financially literate to make it all happen. Saving money is not a difficult thing to do, if you are willing to have some delayed gratification with a plan. 

easy to say...

[Down by the River]

1 hour ago, Jester13 said:

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. 

 

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. 

This is my point. A small, dated detached home was a person's first home. For my generation, it will be the third/fourth home. At least if you live in the GVRD. This is why the sacrifice, which I've made/am making, is different. It is a lot easier to make sacrifices when the reward is greater. 

 

I have very strong doubts about a 3bdrm condo for 350k in the GVRD. 

 

 

[KoreanHockeyFan]

36 minutes ago, Down by the River said:

This is my point. A small, dated detached home was a person's first home. For my generation, it will be the third/fourth home. At least if you live in the GVRD. This is why the sacrifice, which I've made/am making, is different. It is a lot easier to make sacrifices when the reward is greater. 

 

I have very strong doubts about a 3bdrm condo for 350k in the GVRD. 

 

 

Whole-heartedly agree with this. People nowadays are making sacrifices just to get into a modern condo with a great location, but still incredibly small. Developers are highly incentivized to make a bunch of smaller condo units which have 1 bedroom and maybe a den that doesn't even have a damn door. The lack of supply in family-sized condo units is atrociously low, and it shows in the current COVID era rental market. I recently found a new place in Toronto to rent with a roommate and while rent prices for 1 bedroom condo units have plummeted, 2 bedroom units have barely moved - maybe a couple hundred dollars per month at the most. 

 

That nice house in the suburbs isn't even in the cards until retirement. 

Edited March 8, 2021 by KoreanHockeyFan

[Jester13]

58 minutes ago, Down by the River said:

This is my point. A small, dated detached home was a person's first home. For my generation, it will be the third/fourth home. At least if you live in the GVRD. This is why the sacrifice, which I've made/am making, is different. It is a lot easier to make sacrifices when the reward is greater. 

 

I have very strong doubts about a 3bdrm condo for 350k in the GVRD. 

 

 

I agree with your point. The first outcome is different, but my point is that the trajectory of the investment is still the same. I live in Victoria, so there are some old condo buildings around Greater Victoria for cheap. 

 

What's worse, the first outcome of the sacrifice, or not starting the sacrifice in the first place because it's not easy and paying more rent than a mortgage for life?

[KoreanHockeyFan]

17 minutes ago, Jester13 said:

I agree with your point. The first outcome is different, but my point is that the trajectory of the investment is still the same. I live in Victoria, so there are some old condo buildings around Greater Victoria for cheap. 

 

What's worse, the first outcome of the sacrifice, or not starting the sacrifice in the first place because it's not easy and paying more rent than a mortgage for life?

What happens when your well-paying job is in Vancouver and everyone has to return to the office?

 

I think the point we're trying to make here is that the choices we're forced to make are much more sub-optimal than of previous generations - all else being equal. Higher marginal cost for lower marginal benefit. 

Edited March 8, 2021 by KoreanHockeyFan

[Jester13]

14 minutes ago, KoreanHockeyFan said:

What happens when your well-paying job is in Vancouver and everyone has to return to the office?

 

I think the point we're trying to make here is that the choices we're forced to make are much more sub-optimal than of previous generations - all else being equal. Higher marginal cost for lower marginal benefit. 

Yup, times have changed, indeed. My first response was to the comment that "young people are f%$#@ed", which I just simply don't agree with. 

 

Here's another similar sentiment that people spread all the time, "Student debt is out of control", or "I don't want to take out student loans." Student loans are an investment in self. Tuition and fees for a degree in BC is around $26,000 for four years. There are awards to apply for, bursaries, work study, co-op(!), etc., and it's very possible to finish with much smaller student debt, and a job through co-op. Yet we also hear about all the barriers to going to school yada yada, or that there are no jobs out there. It's simply not true. 

 

The self-defeating mentality is a huge detriment to society. 

[Down by the River]

4 hours ago, Jester13 said:

I agree with your point. The first outcome is different, but my point is that the trajectory of the investment is still the same. I live in Victoria, so there are some old condo buildings around Greater Victoria for cheap. 

 

What's worse, the first outcome of the sacrifice, or not starting the sacrifice in the first place because it's not easy and paying more rent than a mortgage for life?

And my point is that it is not. Because people will not be able to afford the mortgages on a decently-sized detached home with a nice yard the way that you could in the past if you did all the right things. The idea that you can work hard and buy real estate and sacrifice and in the end you'll get what the generation before you got is, a total lie at worst, and naivety at best. Doing the exact same thing as in the past will not end in the same result. Income as not seen a concomitant rise with the cost of real estate. 

[Sean Monahan]

3 minutes ago, Down by the River said:

And my point is that it is not. Because people will not be able to afford the mortgages on a decently-sized detached home with a nice yard the way that you could in the past if you did all the right things. The idea that you can work hard and buy real estate and sacrifice and in the end you'll get what the generation before you got is, a total lie at worst, and naivety at best. Doing the exact same thing as in the past will not end in the same result. Income as not seen a concomitant rise with the cost of real estate. 

I see it as possible but not terribly realistic. If I want to have a family, by the time I’d get to be able to afford a detached home with a yard in the burbs I’ll be dam close to hitting the point where it’s time to start downsizing. 

[Russ]

23 hours ago, I.Am.Ironman said:

 

^^can't seem to delete this whoops. 

 

 

Found this funny popping up on my feed 

 

https://dailyhive.com/vancouver/vancouver-best-city-buy-property-young

[taxi]

Listening to baby boomers go on about young people having it tough due to their own financial choices in absurd. What's actually happening is that young people are suffering due to macroeconomic conditions created by baby boomers. Baby Boomers have racked up record amounts of debt and the economy is at a stand still. The government is trying to stimulate the economy by diving down interest rates and encouraging immigration/foreign investment. These policies drive up housing prices. It has absolutely nothing to do with young people not saving. 

 

If you've got a teacher earning $60k/year how do they save more to afford a detached home, which starts at $1.5 million. Or how about even a condo, which start around $600k (for a 500 square foot one). My parents were able to immediately afford a detached home upon graduating and entering the workforce. My mother didn't work, as they could also afford to have multiple children immediately.

[Jester13]

1 hour ago, taxi said:

Listening to baby boomers go on about young people having it tough due to their own financial choices in absurd. What's actually happening is that young people are suffering due to macroeconomic conditions created by baby boomers. Baby Boomers have racked up record amounts of debt and the economy is at a stand still. The government is trying to stimulate the economy by diving down interest rates and encouraging immigration/foreign investment. These policies drive up housing prices. It has absolutely nothing to do with young people not saving. 

 

If you've got a teacher earning $60k/year how do they save more to afford a detached home, which starts at $1.5 million. Or how about even a condo, which start around $600k (for a 500 square foot one). My parents were able to immediately afford a detached home upon graduating and entering the workforce. My mother didn't work, as they could also afford to have multiple children immediately.

I hope you're not referring to me as a baby boomer haha.

 

Take that 60k/year and find a significant other who also makes the same or more. Keep your expenses down and save as much as much as you can. In only a few years time you should have a sizeable downpayment to enter the market. And when you do enter the market, buy a good investment so that you can make money on it. If your plan is to have a house one day then do it every handful of years and you'll get there.

 

If you're only willing to live where condos start at 600k then you're doing it wrong and don't want to make the necessary sacrifices to make it happen. Do you drive or take public transit? If the former, are you willing to take transit and save all that vehicle expense? How about not paying for streaming services for a few years? Do you make dinner every night with leftovers for lunch the next day, or do you eat out often? 

[Jester13]

This is a screenshot of available condos for less than 400k. 

[bishopshodan]

6 hours ago, Jester13 said:

I live in Victoria, so there are some old condo buildings around Greater Victoria for cheap. 

My bud just bought an old bachelor in Vic. $140k+ .

 

Real cheap, he will be working down there in a new career until he can get redeployed to Nanaimo. He plans to fix up the place and will likely turn a nice profit in a year or two. 

[Russ]

Anyone need an electric car parking spot?  For your low low price of 185k!

 

https://www.point2homes.com/CA/Condo-For-Sale/BC/Vancouver/Downtown-Vancouver/P5-521-1480-HOWE-STREET/103319478.html

[-DLC-]

11 minutes ago, Jester13 said:

This is a screenshot of available condos for less than 400k. 

It's kind of a joke though.....they call Ryan Road apartments "condos".  Nope, they're not.

[Jester13]

Just now, debluvscanucks said:

It's kind of a joke though.....they call Ryan Road apartments "condos".  Nope, they're not.

Condos, apartments, whatever the place is, there are lots of places out there to pay less than rent, build equity, and maybe - likely - even have go up in value over a five year term. 

 

6 minutes ago, bishopshodan said:

My bud just bought an old bachelor in Vic. $140k+ .

 

Real cheap, he will be working down there in a new career until he can get redeployed to Nanaimo. He plans to fix up the place and will likely turn a nice profit in a year or two. 

Yup, sounds about right. I know a single woman who owns her own condo in Vic West. She bought it a couple of years ago and has already probably made 30 to 40k off it. She makes around 80k a year. There are places out there to make money on the investment and work your way up the property ladder. Is it as easy as 30 years ago? Of course not. Is it possible? Sure is. 

[-DLC-]

2 minutes ago, Jester13 said:

Condos, apartments, whatever the place is, there are lots of places out there to pay less than rent, build equity, and maybe - likely - even have go up in value over a five year term. 

 

Yup, sounds about right. I know a single woman who owns her own condo in Vic West. She bought it a couple of years ago and has already probably made 30 to 40k off it. She makes around 80k a year. There are places out there to make money on the investment and work your way up the property ladder. Is it as easy as 30 years ago? Of course not. Is it possible? Sure is. 

Thing is, it's not that simple.

 

These places are now 50 years old and there could be big special levies to contend with so finding out how much of a contingency fund there is is important.  As well as maintenance fees....Ryan Road places are nearly $700/month.  For young people, it adds up quickly.

[Jester13]

1 minute ago, debluvscanucks said:

Thing is, it's not that simple.

 

These places are now 50 years old and there could be big special levies to contend with so finding out how much of a contingency fund there is is important.  As well as maintenance fees....Ryan Road places are nearly $700/month.  For young people, it adds up quickly.

I understand that, but my point was showing just how many places are for sale much lower than the poster's claim that you can't find anything less than 600k, and this is a very small area. Go even farther outside of Vancouver and those areas and there are even more places available for much less than they were claiming. 

[Jester13]

3 minutes ago, debluvscanucks said:

Thing is, it's not that simple.

 

These places are now 50 years old and there could be big special levies to contend with so finding out how much of a contingency fund there is is important.  As well as maintenance fees....Ryan Road places are nearly $700/month.  For young people, it adds up quickly.

Also, since when should all young people be able to afford a home in their 20s? My parents were in their early 30s before they purchased their first home in the mid-70s. Imagine graduating university at 22 and working and sacrificing and saving for 10 years just how much that young person would have as a downpayment in their early 30s. Imagine how much in their mid-30s.