Real Estate Affordability and Rising Interest Rates - Is this article an F-ing joke?

[ExFlyer]

4 hours ago, cougar said:

I think what bothers me in the article is something else.

The typical story in the country is of people who are stuck paying rent for decades and unable to buy a place.

This article basically says to me:

If you just came to Canada, you can expect to buy a $750,000 house for your wife, two new vehicles and even add two dogs to your household, but be careful as interest rates are going up. 

You would have been perfectly fine if you bought a slightly smaller house and had only one car and one dog.

All immigrants to Canada can expect to achieve this in 3 years, Brazilians, Mexicans, Philippinos, Indians - everyone.

I think that buying a place is a lifestyle not suited for everyone. Many would rather spend their money on vacations and "things".

While it seems that homeownership is the perceived goal of everyone, it is false. It is, lately, a Canadian notion.  Home ownership is not a right, it is a choice. Most people in most major cities throughout the world rent or lease.

Rent and go on annual or semi annual or more often vacations. Have a new car every other year, buy designer clothes or...... buy a house, maintain a house, pay taxes, paint, fix, improve, landscape, pool and on and on and on but, they are now house poor and the "lifestyle" they want is no longer there. So, there is the choice.

Edited March 19, 2023 by ExFlyer

[CdnFox]

On 2/25/2023 at 4:38 PM, I am Groot said:

Didn't even notice this when you posted it.

 

On 2/25/2023 at 4:38 PM, I am Groot said:

 

Try working on logic first. 

Nothing wrong with my logic. If that's the best you've got for a counter argument sounds like you're the one who needs the work,

On 2/25/2023 at 4:38 PM, I am Groot said:

No, what you did was launch a half page of sputtering outrage at my use of the word 'mass', saying it suggested I was opposed to immigration and that this was a terrible crime. You... do know that your post is still there, right? You honestly write like one of those frenzied woke types who got triggered because someone dared to question immigration.

Ahhh - so basically i'm wrong because i wrote too much for you.  what was it you were saying about logic?

On 2/25/2023 at 4:38 PM, I am Groot said:

You ever hear that line that goes something like "If everywhere you go everyone is an assh0le it's probably YOU that's the assh0le?" Because I think you ought to take a gander in a mirror.

I assume you're talking to yourself seeing how other people here react to you.

On 2/25/2023 at 4:38 PM, I am Groot said:

Ayep. That's what I've done, with numerous cites you didn't read or couldn't understand

Sure kiddo

On 2/25/2023 at 4:38 PM, I am Groot said:

And in return, you've presented your opinion and insults and nothing else. 

I'm deleting the rest of your spew. It's a lot of angry-Karen-type ranting. I'd say you've amply demonstrated your knowledge of immigration is basically zero, as is your ability to discuss things like an intelligent, mature adult. Maybe try working on your lack of social skills.

I Can understand you wanting to run and hide. You have a good day

[CdnFox]

4 hours ago, ExFlyer said:

Rent and go on annual or semi annual or more often vacations. Have a new car every other year, buy designer clothes or...... buy a house, maintain a house, pay taxes, paint, fix, improve, landscape, pool and on and on and on but, they are now house poor and the "lifestyle" they want is no longer there. So, there is the choice.

Well that's not an uncommon theory but it's not really a real thing in this day and age. THere was a book called the wealthy barber many years ago that sold the idea that for MOST people renting was better, subject to a few specifics he outlined.

But it hasn't really worked out that way. It does in the SHORT term but not the medium or longer term. Consider how much rents have gone up. If you bought a home 5 years ago, right now you're probably paying less in mortgage and tax if you bought wisely than you woudl be renting. In 5 more years that will be an even starker contrast.

Personally i coudn't afford to live where i do if i had to pay today's rents.

[ExFlyer]

14 hours ago, CdnFox said:

Well that's not an uncommon theory but it's not really a real thing in this day and age. THere was a book called the wealthy barber many years ago that sold the idea that for MOST people renting was better, subject to a few specifics he outlined.

But it hasn't really worked out that way. It does in the SHORT term but not the medium or longer term. Consider how much rents have gone up. If you bought a home 5 years ago, right now you're probably paying less in mortgage and tax if you bought wisely than you woudl be renting. In 5 more years that will be an even starker contrast.

Personally i coudn't afford to live where i do if i had to pay today's rents.

I will agree somewhat abut disagree to an extent.

Lifestyle and maintaining it seems more important to many than home ownership. Look at the horrendous travel issues at airports, the amounts of people travelling is nuts. Lots of money being spent. People are spending.

Yes, rents are up but, so is the expense of building rentals and maintaining rentals. Who pays for that? Renters of course.

If you bought a home 5 years ago at 1.2 % and today you had to re mortgage at 5.5 % you would be in trouble too.

[Nationalist]

6 minutes ago, ExFlyer said:

I will agree somewhat abut disagree to an extent.

Lifestyle and maintaining it seems more important to many than home ownership. Look at the horrendous travel issues at airports, the amounts of people travelling is nuts. Lots of money being spent. People are spending.

Yes, rents are up but, so is the expense of building rentals and maintaining rentals. Who pays for that? Renters of course.

If you bought a home 5 years ago at 1.2 % and today you had to re mortgage at 5.5 % you would be in trouble too.

Yup. I have a property in that column. For now...

The young today have no sense of responsibility. They'd rather spend on themselves than plan for the future.

"Its too haaarrrd to save the money for a down payment."

[Nationalist]

16 hours ago, CdnFox said:

Well that's not an uncommon theory but it's not really a real thing in this day and age. THere was a book called the wealthy barber many years ago that sold the idea that for MOST people renting was better, subject to a few specifics he outlined.

But it hasn't really worked out that way. It does in the SHORT term but not the medium or longer term. Consider how much rents have gone up. If you bought a home 5 years ago, right now you're probably paying less in mortgage and tax if you bought wisely than you woudl be renting. In 5 more years that will be an even starker contrast.

Personally i coudn't afford to live where i do if i had to pay today's rents.

In my experience, it takes at least 5 years to make any real profit from a rental property investment. I had just reached that mark with my last investment...and then the interest rates rose.

Toronto is a very expensive proposition now. But Halifax...I'm already telling my kids, if they want to own property in Canada, Halifax is queued up for growth over the next decade or 2, and today the prices are half of what they are in Toronto.

[CdnFox]

4 hours ago, ExFlyer said:

I will agree somewhat abut disagree to an extent.

the ultimate moderate

4 hours ago, ExFlyer said:

Lifestyle and maintaining it seems more important to many than home ownership. Look at the horrendous travel issues at airports, the amounts of people travelling is nuts. Lots of money being spent. People are spending.

Oh no doubt many people are prioritizing it differently.  But - if we're JUST talking about whether you save money renting vs owning, then what i suggested holds true.

And to each their own - but what does anger me is that those same people who DIDN'T care about owning a home and securing their living space will often be the first in line to scream about how nothing's affordable and homeowners don't deserve the equity they've built.

4 hours ago, ExFlyer said:

Yes, rents are up but, so is the expense of building rentals and maintaining rentals. Who pays for that? Renters of course.

Well it gets worse even than that in most areas - there's no money in building a rental building anymore. The only time rentals get build (aside from some specialized luxury rentals) are when govt's force the developer to do so as part of a zoning deal to let them build more strata condos for sale. And that' s very limited.

So most rental construction is ACTUALLY condo construction that then gets sold and then THAT person rents the unit out - so all the costs associated with the condo PLUS the developer's profits PLUS whatever the homeowner wants on top get built in, and rents go up accordingly.

4 hours ago, ExFlyer said:

If you bought a home 5 years ago at 1.2 % and today you had to re mortgage at 5.5 % you would be in trouble too.

Not really. Housing prices were actually considerably lower 5 years ago. In additon most people's incomes have gone up at least a those 5 years.

The people who are in trouble are the ones who bought 2-3 years ago - those guys are screwed. Their mortgages will be coming up right in the middle of the high cycle and they paid more money than they can get these days if they sell. And they've had no time to pay any significant amount down on their mortgage, s0 they won't be able to remortgage over a longer term.

 

[Nationalist]

IMO, the only "good" condo investment, is one where the investor put his/her money in during the build. Once built, sell for a profit immediately.

Other than that, its almost impossible to turn a profit by renting one out.

[cougar]

On 3/19/2023 at 10:38 AM, ExFlyer said:

I think that buying a place is a lifestyle not suited for everyone. Many would rather spend their money on vacations and "things".

While it seems that homeownership is the perceived goal of everyone, it is false. It is, lately, a Canadian notion.  Home ownership is not a right, it is a choice. Most people in most major cities throughout the world rent or lease.

Rent and go on annual or semi annual or more often vacations. Have a new car every other year, buy designer clothes or...... buy a house, maintain a house, pay taxes, paint, fix, improve, landscape, pool and on and on and on but, they are now house poor and the "lifestyle" they want is no longer there. So, there is the choice.

With rent being way over what the mortgage payments for the month would be, it is a no brainer what one must do.

Or are you talking about a rich guy making way over $120K/year who chose to rent a $1,500/month single bedroom apartment instead of buying a $400K-$500K detached house?

[ExFlyer]

9 hours ago, cougar said:

With rent being way over what the mortgage payments for the month would be, it is a no brainer what one must do.

Or are you talking about a rich guy making way over $120K/year who chose to rent a $1,500/month single bedroom apartment instead of buying a $400K-$500K detached house?

Well, payments are very dependant on how much you have to put down on the house and what your mortgage is. A $600K mortgage will be well over $4K per month. $400K is over $2.5K per month. Not including any utilities and property taxes.

I think you need to check mortgage rates before you make statement like you did. Plus, people will need a minimum down payment, if they have it.

My point is, not everyone wants to own a house and the effort and expenses with owning a house.

And, not everyone wants to own a house. No right to buy a house.

Edited April 11, 2023 by ExFlyer

[impartialobserver]

In the western US, the primary driver of high housing prices is that demand exceeds supply in the short term. In CA, this is compounded by a very wide disparity in income. The top of the food chain can easily afford $4500 per month for a mortgage while the bottom 20% can't even come close. This reality predates the current interest rate hike. 

[cougar]

On 4/11/2023 at 4:56 AM, ExFlyer said:

My point is, not everyone wants to own a house and the effort and expenses with owning a house.

And, not everyone wants to own a house. No right to buy a house.

It is not about what you want, but what makes economic sense is what I am trying to say.

Blowing your money away on rent and being left with no equity would be silly to say the least.  Try raising a family in a rental house - you think this would work???

Somehow, I can't see your argument at all.

Edited April 13, 2023 by cougar

[ExFlyer]

5 hours ago, cougar said:

It is not about what you want, but what makes economic sense is what I am trying to say.

Blowing your money away on rent and being left with no equity would be silly to say the least.  Try raising a family in a rental house - you think this would work???

Somehow, I can't see your argument at all.

What I want?  I don't want anything. I have what I want and need.

I am saying not everyone wants to be or will be homeowners. What makes economic sense to one person can be completely different in another person.

"Blowing your money" is a very individual thing. Some want a house, others want fancy cars, designer clothes and exotic vacations.

Millions of people, all over the world raise their families in rental accommodations so yes, it works just fine. 1/3 of Canadians do not own a home and that has been the rate for many decades.

I have no argument, I am stating facts. To each their own for their own reasons as opposed to you where you cannot see past that everyone should own a house..

[Michael Hardner]

On 4/11/2023 at 7:56 AM, ExFlyer said:

 My point is, not everyone wants to own a house and the effort and expenses with owning a house.

Rents and vacancy rates are directly tied to real estate prices though right ?

A lot of people can afford the mortgage payment but can't get $35K minimum downpayment (average house price in Canada with 5% down roughly)

There is nowhere for prices to go but down ..

[ExFlyer]

6 minutes ago, Michael Hardner said:

Rents and vacancy rates are directly tied to real estate prices though right ?

A lot of people can afford the mortgage payment but can't get $35K minimum downpayment (average house price in Canada with 5% down roughly)

There is nowhere for prices to go but down ..

Rental costs are affected by many things. Yes, real estate prices and vacancies are some  but so are expenses, utilities, taxes, labour and same as home ownership expenses etc etc. Oh and lets not forget the profit landlords expects.

I already responded to someone that said "rent a $1,500/month single bedroom apartment instead of buying a $400K-$500K detached house?" and said,  "Well, payments are very dependant on how much you have to put down on the house and what your mortgage is. A $600K mortgage will be well over $4K per month. $400K is over $2.5K per month. Not including any utilities and property taxes. "

[Michael Hardner]

Understood.  The biggest expense is the mortgage also.

A $600K condo has to rent at a high price.

[ExFlyer]

On 3/20/2023 at 8:50 AM, Nationalist said:

Yup. I have a property in that column. For now...

The young today have no sense of responsibility. They'd rather spend on themselves than plan for the future.

"Its too haaarrrd to save the money for a down payment."

They say when they parked their BMW at the airport and are lying on the beach at Bahai Pricipe on Riviera Maya 

[Michael Hardner]

The millenials I know are so much better with money than the average boomer.  They have to be.

[impartialobserver]

this story is much the same as what you see in the Western US from 2018 to mid 2022.. Rising prices, wages not keeping up, and outsiders/real estate speculation driving up the price. I bought my house for 128K in 2013 and now could easily sell it for 450K

 

[herbie]

4 hours ago, Michael Hardner said:

The millenials I know are so much better with money than the average boomer.  They have to be.

Some are.

I look across the street and see the young families. $90,000 4x4. 16' boat, cartopper boat, 3 snowmobiles and 2 quads. One has a 40ft travel trailer and just a wife and 2 yr old. They 'need' gig internet at $150 mo, a family cell plan for another $150, burn wood to save money.
All live in rented mobile homes they could buy with property titles for $20K down and lower mortgage payments than they pay now for rent.
Their parents are the same. Like I mentioned elsewhere one making $5400 a payday quit his job because his boss was 'stupid' and coworkers were 'goofs'. He asked his foreman to mark him laid off on his ROE but was complaining Head Office marked it 'abandoned job' and he can't get EI.

Too many people with no financial sense,

[cougar]

17 hours ago, ExFlyer said:

I already responded to someone that said "rent a $1,500/month single bedroom apartment instead of buying a $400K-$500K detached house?" and said,  "Well, payments are very dependant on how much you have to put down on the house and what your mortgage is. A $600K mortgage will be well over $4K per month. $400K is over $2.5K per month. Not including any utilities and property taxes. "

?

I cannot figure out what exactly you are trying to say with this. 

I suggested that a rich guy who is secure can blow money on a rental unit, go into a more expensive rental unit once he is kicked out from the first one in a "renovation" and finally buy a place when he runs out of options.

$2.5K/month or $4.5K/month in comparison to $1.5K/month for renting a tiny place, this is exactly what I had in mind.  The guy is left with the difference of $1K to $3K/month that he can spend on toys and 10-20 years down the road be left with nothing in equity. But if he has kids, that $1.5K/month will not give them enough space, they will be renting a two or three bedroom for maybe $2,500/month.

How about you?  Do you rent?

I once was in a situation where the landlord decided to sell the house I was renting.  The realtor brought the F-ing buyers to my place in the evening when all of us were there to show them the place with us inside like animals in a zoo.   I could have ripped her throat out right there!  Good thing I resisted the temptation , but with me it could have easily gone sideways. Go and explain your kids what is happening and that you do not know where they are going to live !!  Explain to them their parents are losers and cannot offer them any security!

I did see lots of those guys whose lifestyle is such that they do not buy a place.  You know where ??

In Prince George, BC this past week.  They were and still are out on the street day and night all over downtown.  Hundreds of them, sleeping in the streets and starting little fires to warm up at 1am in the morning (when my dog decided he wanted out of the hotel room to pee).

But you will find those same guys in just about every sizable town now.

THIS IS THE F-ING LIFESTYLE YOU WANT TO PROMOTE TO ME ?

Thanks!  This style might suit only Michael Hardner.

Edited April 14, 2023 by cougar

[cougar]

On 3/20/2023 at 5:40 AM, ExFlyer said:

Lifestyle and maintaining it seems more important to many than home ownership. Look at the horrendous travel issues at airports, the amounts of people travelling is nuts. Lots of money being spent. People are spending.

 

So all those frequent travelers spending money must be renters who saved money by not buying a home?

Hi-hi-hi-hi

[Michael Hardner]

Boomers 10X wealthier than millennials

 

https://www.businessinsider.com/millennials-versus-boomers-wealth-gap-2020-10

[ExFlyer]

5 hours ago, cougar said:

?

I cannot figure out what exactly you are trying to say with this. 

I suggested that a rich guy who is secure can blow money on a rental unit, go into a more expensive rental unit once he is kicked out from the first one in a "renovation" and finally buy a place when he runs out of options.

$2.5K/month or $4.5K/month in comparison to $1.5K/month for renting a tiny place, this is exactly what I had in mind.  The guy is left with the difference of $1K to $3K/month that he can spend on toys and 10-20 years down the road be left with nothing in equity. But if he has kids, that $1.5K/month will not give them enough space, they will be renting a two or three bedroom for maybe $2,500/month.

How about you?  Do you rent?

I once was in a situation where the landlord decided to sell the house I was renting.  The realtor brought the F-ing buyers to my place in the evening when all of us were there to show them the place with us inside like animals in a zoo.   I could have ripped her throat out right there!  Good thing I resisted the temptation , but with me it could have easily gone sideways. Go and explain your kids what is happening and that you do not know where they are going to live !!  Explain to them their parents are losers and cannot offer them any security!

I did see lots of those guys whose lifestyle is such that they do not buy a place.  You know where ??

In Prince George, BC this past week.  They were and still are out on the street day and night all over downtown.  Hundreds of them, sleeping in the streets and starting little fires to warm up at 1am in the morning (when my dog decided he wanted out of the hotel room to pee).

But you will find those same guys in just about every sizable town now.

THIS IS THE F-ING LIFESTYLE YOU WANT TO PROMOTE TO ME ?

Thanks!  This style might suit only Michael Hardner.

I was responding to someone that made a comment on rent being higher than mortgages.

I did rent yes.

A landlord can sell bhis apartment or condo or house any time he wants. He has that right and can bring someone in to look at it. I am sure your rental/lase agreements states that.

There are homeless all over the country, all over north America all over the world. For many different reasons. Your point??

Where did I promote sleeping in the streets??? Get a grip and take oyur emotions and feelings out of this rent vs own topic.

All I have said, from the beginning, not everyone wants to be a homeowner and there is not right to own a house.

Take a pill dude LOL

 

[ExFlyer]

5 hours ago, cougar said:

So all those frequent travelers spending money must be renters who saved money by not buying a home?

Hi-hi-hi-hi

When and where did I say that??

What I did say is to some, lifestyle is more important than owning a house and the expenses that come with it.

You need to relax, this is a discussion.  You have clearly not read and comprehended the previous posts and retorts to your comments.

Edited April 14, 2023 by ExFlyer