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| $60,000.00 cash down & still not enough!
Posted: 9/22/2007 9:36:15 PM | $60,000.00 cash down & still not enough!
What is happening in the Lower Mainland with our housing
I feel so sorry for the young couples trying to get in on the market on their own!
no wonder people turn to crime and grow ops to finance their lives !
yes I know a young couple both working full time and over time and saved $60,000.00 to put down on a home and still can't qualify for the mortgage
and this is 45 minutes out of town and a townhouse that is 15 years old !
Forget trying to get a HOUSE near your work areas or in the city & surrounding area!
WTF?
come on this is BEEF thread - have at her! | |
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| $60,000.00 cash down & still not enough!
Posted: 9/22/2007 9:38:37 PM | oh and PS
they were told that couples really need to have an income of about $150,000 now to qualify for a mortgage to purchase anything worth purchasing !
I feel sick for these kids... no wonder all our children are leaving the lower mainland!
They cant afford to stay in the areas they grew up in and love anymore! | |
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| $60,000.00 cash down & still not enough!
Posted: 9/22/2007 10:02:16 PM | My mom always told me to that if I wanted to have anything in life, I needed a $20/hr job. Now I have that, no I'm not bragging, and yet I'm hugely in debt to them (will take about 2-3 years to pay off) and living hand to mouth for the most part. I can't even THINK about buying anything like a condo or a house. Heck, I'm trying to go back to school for a better paying job but the kicker is, I can't do that while I'm working.
I love the lower mainland, I won't move anywhere else (mainly b/c I won't make nearly as much as I do now) but it has it's major draw backs. I'm hoping this bubble will burst after the Olympics but I won't hold my breath. It's disgusting. I can't imagine how people on minimum wage do it - nor can I imagine how single parents do it. I couldn't afford a child that's for sure! Daycare alone is over $1,000 a month! | |
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| $60,000.00 cash down & still not enough!
Posted: 9/22/2007 10:09:15 PM | | 60 000 down and still not enough? Wow are you sure there are not other factors like their credit? How much is this condo cause usually 5%down is typical.... | |
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| $60,000.00 cash down & still not enough!
Posted: 9/22/2007 10:22:52 PM | Its happening all over the province.. the prices are lower in the Interior, but so are wages. The bottom line is the same: people cannot afford housing. Some blame realtors and speculators, but those would point to the government for not releasing more Crown land or allowing more subdivision. In other parts of the developed world, it is even worse - apparently there is no land for sale outside families in Europe.
So, you know how the X generation was created when kids could no longer keep up with the expectations of the previous (boomer) generation, owing to recession and inflation of the early/mid 80's? It took a decade or so for expectations to adjust to reality, and hence the Y generation expects only to rent or lease housing. Well, get ready for the Z generation: those good kids who graduate expecting to get a job and rent a flat, and discover that they cant afford to have an address! The working homeless are already a significant minority, but if we hit what were heading for, they'll be a big problem... both for us and themselves.
Makes me think sometimes that human beings are a frustrated and unhappy lot, to do the things that we do. Thats when I'm feeling generous - other times it seems that we're just an infestation on the face of this planet.
So you posted a complaint, and got bitter cynicism in reply... not totally out of place is it | |
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| $60,000.00 cash down & still not enough!
Posted: 9/22/2007 10:31:59 PM |
yes I know a young couple both working full time and over time and saved $60,000.00 to put down on a home and still can't qualify for the mortgage
Holy wow! That's more than mine is even worth on the market; here now. | |
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Pucks
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Joined: 10/14/2006
Msg: 7 | |
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| $60,000.00 cash down & still not enough!
Posted: 9/22/2007 10:43:55 PM | Housing prices on the Lower Mainland are just nasty!
My poor daughter, her husband and my two grandchildren are moving back to Terrace. They can't afford to buy there and the rents are really high.
It's just awful. Imagine now instead of 5 grandchildren in town, I will have 7. Whatever will I do? | |
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| $60,000.00 cash down & still not enough!
Posted: 9/22/2007 11:28:03 PM | Yes, it is soooooooooooo, unfortunate, that these younger people just starting out, cannot afford a house, however, it is not so much that the house costs so much money.
However, instead, it is the land value, and where it is located that costs so much.
Sure the house factors into the value, but it is the land, that the house is on, that costs soooooooooooo, much.
Especially, if it is land that is undeveloped, that they have to clear, landscape, run a sewer system in, electrical, and any other utilities that need to be put into place, it all adds up to the costs of developing that land, that the house is being built on.
I feel sorry for these young people, and it will be tough for them, unfortunately, especially, if they want to also start a family.
Where as with people my age of 52, who bought a house many, many years ago, with lots of land, and was not that expensive, they probably bought it for investment wise.
And they are now selling that house, and land for mega buck now, and downsizing to something smaller, and more affordable, and using the remaining money towards their retirement. | |
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| $60,000.00 cash down & still not enough!
Posted: 9/23/2007 2:24:19 AM | why not move to Island, places like here, Nanaimo, house is still reasonable, again, i was lucky to get into it really early while i have a 20dollar job here in Nanaimo...
Nanaimo might not be as exciting as Lower Mainland, not a bad place to raise a kid. | |
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| $60,000.00 cash down & still not enough!
Posted: 9/23/2007 3:43:11 AM | ^^^^ Reasonable????
To some maybe.
I cant sell and re-buy, because there is nothing to buy that I could afford.
The prices here on the island.... for what one gets.... it is insane.
A cottage in the country,,, a bit away from Vic or Nanaimo...they don't exist. | |
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| $60,000.00 cash down & still not enough!
Posted: 9/23/2007 6:38:27 AM | | Sounds to me like they have other issues with their credit. You don't need much of a downpayment these days, you just have to prove you can afford the mortgage. If I can afford a mortgage all on my own, then two people who are working should be able to as well. Do they both have cars they are still paying for? If they can find a way to save 60 grand, then I doubt they have credit card debt, but maybe one or both of them has a bad credit rating. There are lots of places on the market they could afford with two incomes, maybe they're just being too picky? Sometimes, you have to look at real estate more as an investment, and realize you may not find your dream home on the first try. | |
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| $60,000.00 cash down & still not enough!
Posted: 9/23/2007 7:02:54 AM | | Like some of said here, there is more to the story if they actually have the 60 g's for a downpayment. If their credit rating was anywhere near reasonable, after the 60 grand for a downpayment, getting that mortgage would'nt take a half a day. Of course if the value of the house is 5 million or so, this could be a problem. Lending money by the banks or whoever is not rocket science, especially in this day and age. They are giving loans and mortgages away like candy during Hallowean. Now, making the payments,month in and month out for years at a time, is becoming the problem for the people just getting started. That is of course, if they want to do anything else other than pay off a mortgage. That is really were the young ones are getting themselves into trouble. Can we say F O R E C L O S U R E ??????????? | |
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| $60,000.00 cash down & still not enough!
Posted: 9/23/2007 9:46:42 AM |
why not move to Island, places like here, Nanaimo, house is still reasonable,
Soooo without factoring in the upcoming monsterous ferry increases YET again....
ya think? HA! my house went up over $150,000 in the last two years here in Parksville,... THAT is insane since nothing has changed except a new crack in the driveway and few more weeds growing
As for not qualifying? there HAS to be more to the story ,.. I only had $20,000 down when I bought my first place and I only have one income and three kids to feed. Past credit speaks volumes!
One needs to look around, and don't be so picky... | |
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| $60,000.00 cash down & still not enough!
Posted: 9/23/2007 10:21:35 AM | | Something doesn't sound right here! Perhaps they are not looking in their price range. I bought my condo almost 4 years ago, live alone and I can assure you, I don't make anything remotely close to that amount and didn't even have the down payment (borrowed it and the bank just tacked it on to my mortgage). Most people start with something small like a condo or old like a fix-er-up and work their way up. | |
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| $60,000.00 cash down & still not enough!
Posted: 9/23/2007 10:25:20 AM | A quick calculation:
income of $150,000 (assuming good credit and no other debts) should qualify them for a mortgage of about 600-700 K.
are they buying a place of $660 k -$760 K?
In Vancouver I suppose that's about the base price now for anything decent. But I'll wager prices are $100-$150 cheaper in coquitlam, and even cheaper in surrey.
any way you look at it.... that is a KILLER. | |
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| $60,000.00 cash down & still not enough!
Posted: 9/23/2007 10:54:40 AM | I got my place on June this year,
south Nanaimo, 8th street, rural area......
188k
1 bedroom with a studio, but i got a quarter aces...
I put 20k down, 40 years mortgage, because I am still 20s. beside, i am not going to
live here forever, wait until my subdivision townhouses are done... sell it right away.
now, I rent it my studio out for 350dollar/month..
My mortgage is around 850/month with property tax.
I am paying 500 dollar to live in a house................
see, if you could afford the house, just get in ASAP to collect equity..
I used to live in Hong Kong when I was little, i have experience real esate bubble, blow it up and get it back, however, due to we have huge land here on island and baby boom generations are moving in, as long as i have land, no worries.......................
There are houses in reasonable price there, no need to be a fancy house, just somewhere to start, otherwise, you could go nowhere eh? | |
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| $60,000.00 cash down & still not enough!
Posted: 9/23/2007 11:15:12 AM | exactly, if your credit is screwed up or huge creditcard loan, car loand is there, chance is limited.
I cashed my RRSP, top up to 20k to put as a downpayment.......
There is one thing I have to say, plz don't piss off buddies..
I think school never teaches kids personal financing here in North America.
Average joes never realize "cash is king", neither creidt, nor financing a fancy car....
I was taught the only reason poor people keep living in poor condition is they believe liability as asset..
We might have teach kids when they are young how to save asset. | |
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| $60,000.00 cash down & still not enough!
Posted: 9/23/2007 11:19:32 AM | Hey everyone -- awesome feed back
this really is a thread to get the opinions and experiences posted
as I just cant believe what its like for the young people today....
regardless of the issue of this couple it is just plain sad for the new home buyers
this particular couple ,,the income of the man would only be considered in this case
therefore not enough to qualify for the payments ....
and it was the cheapest place they could find in the market that would be suitable for them. The $150,000 was an exaggerated amount.... the good thing is the bank was looking out for the life quality of these two - they would of been extremely house poor, but then isn't that where we all started?...still it is sad that so many of our settlers and born &raised are leaving town to be able to afford a "basic " lifestyle elsewhere ....my point | |
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| $60,000.00 cash down & still not enough!
Posted: 9/23/2007 11:24:30 AM | you have to do what you have to do? we all know, Vancouver is nice to live, how many people could afford the house or lifestyle there. It will be nice to visit once a while, do you want to see your kids live with you in a basement or grow up in a ghetto?
I know it's very tough for young people, I am 20s, same...
however, if you want to have a house, there are expenses and lifestyle you must cut..
dine out less, one penny save is one penny gain.
Start your RRSP, asked your employer deducted T4 directly into RRSP.
Small things do count. | |
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| $60,000.00 cash down & still not enough!
Posted: 9/23/2007 12:59:07 PM | We might have teach kids when they are young how to save asset
I certainly hope you don't think a house/condo/townhome that you live in is an asset. It is a liability. The rest of the BS about buying a house to live in is BS. (this should start some chatter...LOL)
Prices being higher.....a simple, yet complicated reason. It's mainly due to the baby boomers and their need for money to retire....and add in that land is scarce in the lowermainland, no density in building (slowly happening now) and you have a great situation for high prices. Mix in realtors who claim that you only bid higher than the asking price without inspection or conditions (and the realtors are VERY good at getting that message out to the public ---awesome marketing, a real marvel) and you are guaranteed high prices that don't reflect the value of the real estate.
oh well....just my thoughts....based on experience and research....but the "machine" must move forward and make money for someone, as it always has.,... | |
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| $60,000.00 cash down & still not enough!
Posted: 9/23/2007 2:19:40 PM | ^^^^Dudley:
Ya hit the head on the nail, dead on.
Yuppers, land is getting scarce in the Lower Mainland, and with the cost of developing it, gots big time bucks, which adds to the increase of the land value.
Further more, I totally agree to the fact, that with the baby boomers wanting to retire, who bought their homes with acreage many years ago, which was an investment for them are NOW looking at selling it at a hight price, to that they can pad their retirement funds, and downsixe to something smaller, and more affortable.
So, buying a home today, IS, no longer an asset, it IS, a liability, that comes with a LONG TERM mortgage, and if you cannot pay it off, the lending companies will foreclose on you, and ya lose EVERYTHING.
It is SAD, yet, it is true, and banks are gobbling this up, left, right, and center.
At my age of 52, do ya think I would even attempt to start out buying a house, NOT A CHANCE, I will rent before I buy, and renting is not so bad after all.
Ya may not own your home, but, ya don't have a LONG TERM mortgage to pay off, ya don't have to really pay fro hardly any repairs, because, that is the landlord, or owners of the home to do so.
Ya got no property taxes to pay, just basically rent, and utilities ya pay for, and by renting, you are a lot more mobile, which means ya don't have to sell the home before moving.
Just give at least 30 days notice, that you are moving, and during those 30 days, look for another place that you want to move into, and start packing, so that you are ready to move into the new place before ya move.
It IS, a LOT simpler to RENT, and one other thing, if you are not paying for a long term mortgage, then that extra money that you may have left over, put it away for your RETIREMENT.  | |
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| $60,000.00 cash down & still not enough!
Posted: 9/23/2007 3:03:31 PM |
I certainly hope you don't think a house/condo/townhome that you live in is an asset. It is a liability.
really? i would certainly be interested in knowing your justifications for believing this. | |
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| $60,000.00 cash down & still not enough!
Posted: 9/23/2007 4:03:15 PM | | cuddly dudley, I think I understand what you mean when you say that buying a house to live in is BS. If you are buying real estate to rent out to others you are smart as this is a very good way to make money as real estate has always proven to be a better investment over time than most stocks etc. The problem is that in this market most people can't afford to do that. You often have to have a conventional downpayment (25%) or banks will require you to live in the property you are purchasing. Once you have some equity in your own home then you may be able to purchase a rental property, but it can take time to build equity. I understand, though, that a lot of these rules are now changing. As far as realtors who advise you to bid higher than the asking price all I can say is that I have never experienced this myself, although the realtor I used this last time did manage to sell my place for more than the asking price. I think it comes down to 'caveat emptor'. Do your own research before buying, understand the whole process, and know the market you are purchasing in. If you rely completely on a real estate agent you are leaving yourself open to being taken advantage of. | |
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| $60,000.00 cash down & still not enough!
Posted: 9/23/2007 8:38:15 PM |
Do your own research before buying, understand the whole process, and know the market you are purchasing in. If you rely completely on a real estate agent you are leaving yourself open to being taken advantage of.
I would agree that it is smart to do all the research required, but banks themselves have tightened up on the appraisal value of homes in the past year...A couple of years ago they were throwing high appraisals and giving away money for next to nothing in interest. But now, it really doesn't matter as much on what the realtor wants to sell the house for, because if the bank appraisal is lower than the sale price, then the deal generally falls apart in the finance...so realtors, who only get paid if the house sells, aren't going to try and sell a house for what they know won't pass the appraisal in the first place. I don't know of anyone who would buy a house for a higher price than the banks appaisal value. Most buyers who can afford a house today, are quite shrewd and pick the house apart and look in every nook and cranny taking notes that they can go home and mull over....At least that is what i've noticed....personally I have an acreage (bare lot) for sale right now as does someone very close to me..Mine is more private, better view, closer to the city limits and listed 55,000 less expensive...have had on market for over a month and still no bites...I don't think the market is as strong as people are claiming, and if I was a buyer, I would hold out for a bit, because I would bet thatmore likely sooner than later, those people that borrowed all that 'cheap' money two years ago against there homes, will be in a financial dilemna where they 'must sell'. | |
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