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real estate prices in Canada sustainable?

real estate prices in Canada sustainable?

Old Apr 11th 2021, 9:57 pm
  #226  
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Default Re: real estate prices in Canada sustainable?

Originally Posted by BristolUK
Of course. But you do know there was a time when loads of people could do so and now can't buy the equivalent in the same location.

Our family of 6 lived in the Bonzo's Keynsham on a council estate. My dad worked in the Sales office at WD and HO Wills. Mum didn't work.
They got a mortgage to buy a 3 bed semi on his earnings only.

I borrowed the (then) maximum 2.5 times my salary to buy my house in 1984. Identical houses in my little block have all been sold in the last three years for amounts needing 16 times the salary of the job I had back then.


Or the same job that was good enough 30+ years ago.

I would have said "or here" but even here houses are going for more than an already inflated asking price. The duplex I sold in 2016 went for 2.5 times last year. If only I'd been able to hang on another couple of years. Only the siding had been changed.
Yesterday our realtor told us about a nearby condo which was sold for $1.3M 3 years ago. They spent $100K updating it and sold it for $2.4M. $1M profit, not a bad turnover.
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Old Apr 11th 2021, 10:06 pm
  #227  
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Default Re: real estate prices in Canada sustainable?

Originally Posted by dbd33
Sacrifices might have to be made, particularly in location, but that was always the case, some of us moved to the back of beyond, Hogtown, in order to get a house. There are still people who want a house enough to do that; people live in Mississauga, Windsor, even Winnipeg. People buy half a house with someone else or they buy a house and rent out part of it, they cram multiple generations into a single house. Lots of people commute two hours each way. It can be done by many people, we're talking Canada here, not Camden Town.
I wonder whether the multi generation thing is cause or effect ? A multi-generation household can have more buying power.

I think it's too easy for our generation to dismiss overpriced housing as a failure to work hard enough and/or a failure to sacrafice.


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Old Apr 11th 2021, 10:07 pm
  #228  
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Default Re: real estate prices in Canada sustainable?

Originally Posted by Jerseygirl
Yesterday our realtor told us about a nearby condo which was sold for $1.3M 3 years ago. They spent $100K updating it and sold it for $2.4M. $1M profit, not a bad turnover.
Crikey. Where's the alarm bell, it needs ringing.
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Old Apr 11th 2021, 11:34 pm
  #229  
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Default Re: real estate prices in Canada sustainable?

Originally Posted by Shard
I wonder whether the multi generation thing is cause or effect ? A multi-generation household can have more buying power.
Both. Some people prefer that living arrangement, perhaps for cultural reasons, some do it grudgingly so they can buy in a more expensive location than would otherwise be the case.

Originally Posted by Shard
I think it's too easy for our generation to dismiss overpriced housing as a failure to work hard enough and/or a failure to sacrafice.
I can't parse that sentence. Over priced housing is when many people leave a place as they cannot afford to either buy or rent there. That's quite different than an individual or couple not being able to buy a house where they want to. Most people have the option to move somewhere cheaper, though if you're already in Moncton this may not apply.
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Old Apr 12th 2021, 3:04 am
  #230  
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Default Re: real estate prices in Canada sustainable?

Crazy how much rent has gone up since we moved in July, same building.

1 bedroom went from 1,325 to 1,650 per month

2 bedroom went from 1,600-1,650 to 1,920 per month

3 bedroom went from 1,800-1,900 to 2,300


For new tenants.
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Old Apr 12th 2021, 4:08 am
  #231  
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Default Re: real estate prices in Canada sustainable?

Originally Posted by Jsmth321
Crazy how much rent has gone up since we moved in July, same building.

1 bedroom went from 1,325 to 1,650 per month

2 bedroom went from 1,600-1,650 to 1,920 per month

3 bedroom went from 1,800-1,900 to 2,300


For new tenants.
Your landlord shouldn't be whinging about you breaking your lease then, they'll be in front!
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Old Apr 12th 2021, 10:57 am
  #232  
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Default Re: real estate prices in Canada sustainable?

Originally Posted by Jsmth321


For new tenants.
This is how rent control constraints the market. Say you're paying $1500 in rent, If you buy a similar property the repayment will be $3500 and you'll have wiped out your contingency fund. You have to really like the condo to do that, otherwise you may as well keep socking away a couple of hundred grand a year and wait to see if the bubble bursts. Take away the rent controls and more people will buy, forcing prices higher. Rent control is a means to constrain house prices, albeit an indirect one.
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Old Apr 12th 2021, 12:01 pm
  #233  
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Default Re: real estate prices in Canada sustainable?

Originally Posted by dbd33
This is how rent control constraints the market. Say you're paying $1500 in rent, If you buy a similar property the repayment will be $3500 and you'll have wiped out your contingency fund. You have to really like the condo to do that, otherwise you may as well keep socking away a couple of hundred grand a year and wait to see if the bubble bursts. Take away the rent controls and more people will buy, forcing prices higher. Rent control is a means to constrain house prices, albeit an indirect one.
A bit off-topic, but I don't think I know even one person who could afford to save $200,000 a year.
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Old Apr 12th 2021, 1:02 pm
  #234  
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Default Re: real estate prices in Canada sustainable?

Originally Posted by spouse of scouse
A bit off-topic, but I don't think I know even one person who could afford to save $200,000 a year.

If you can't do that then I don't think you can buy a house, starting from nothing, or from student debt, in an expensive urban centre. You have to be able to save faster than the price of the target apartment is increasing and you have to accumulate something like $600,000 as a deposit. Otherwise you're off to the 'burbs.
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Old Apr 12th 2021, 3:44 pm
  #235  
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Default Re: real estate prices in Canada sustainable?

Originally Posted by dbd33
If you can't do that then I don't think you can buy a house, starting from nothing, or from student debt, in an expensive urban centre. You have to be able to save faster than the price of the target apartment is increasing and you have to accumulate something like $600,000 as a deposit. Otherwise you're off to the 'burbs.
Even the burbs have become unattainable for the majority! Take Hamilton, a typical blue collar worker city, where house prices and rents were affordable and buying a house was achievable for many.. go forward to the last 4-5 years and as more and more and more people get priced out of Toronto / Mississauga/ Oakville and GTA generally - they have moved across to Hamilton where prices have gone through the roof and many can't even afford to rent. I'm not talking of big houses or condo's - even the North end - which was a run down area with very very cheap houses / rentals have now got to a point of being out of the price range for locals! Suburbs are all well and good - until the City expands and expands to encompass them.

All well and good saying move elsewhere............ but where?
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Old Apr 12th 2021, 4:13 pm
  #236  
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Default Re: real estate prices in Canada sustainable?

Originally Posted by Siouxie
Even the burbs have become unattainable for the majority! Take Hamilton, a typical blue collar worker city, where house prices and rents were affordable and buying a house was achievable for many.. go forward to the last 4-5 years and as more and more and more people get priced out of Toronto / Mississauga/ Oakville and GTA generally - they have moved across to Hamilton where prices have gone through the roof and many can't even afford to rent. I'm not talking of big houses or condo's - even the North end - which was a run down area with very very cheap houses / rentals have now got to a point of being out of the price range for locals! Suburbs are all well and good - until the City expands and expands to encompass them.

All well and good saying move elsewhere............ but where?
Yep. You move out and you have to pay to commute. Cities end up without essential workers,.prices in the suburbs and beyond go up.
House sales are hot even out in the sticks. I know of one that sold within a week for $100k over asking.
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Old Apr 12th 2021, 4:17 pm
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Default Re: real estate prices in Canada sustainable?

Originally Posted by Siouxie

All well and good saying move elsewhere............ but where?
As above, Dundalk, Shelburne, Grand Valley, Winnipeg, Moncton, if things look really dire then another country, Wales, for example.
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Old Apr 12th 2021, 4:20 pm
  #238  
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Default Re: real estate prices in Canada sustainable?

Originally Posted by dbd33
Both. Some people prefer that living arrangement, perhaps for cultural reasons, some do it grudgingly so they can buy in a more expensive location than would otherwise be the case.



I can't parse that sentence. Over priced housing is when many people leave a place as they cannot afford to either buy or rent there. That's quite different than an individual or couple not being able to buy a house where they want to. Most people have the option to move somewhere cheaper, though if you're already in Moncton this may not apply.
Not one of my better sentences. It was missing the word 'complaints' before housing. As per Bristol's report, even Moncton may no longer be the value it once was.

There's obviously no easy answers for runaway house prices, but I do have a great deal of sympathy for next generation simply wanting the security of a home. Moving to cheaper locations often comes with the inconvenience of inadequate work/opportunity.
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Old Apr 12th 2021, 4:33 pm
  #239  
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Default Re: real estate prices in Canada sustainable?

Originally Posted by dbd33
As above, Dundalk, Shelburne, Grand Valley, Winnipeg, Moncton, if things look really dire then another country, Wales, for example.

So move to a village in the middle of nowhere, with no transport, no industry.. no jobs... hmm... that may be all well and good if you happen to have a job you can work from home with - telecommute/remote or a pot full of money... or you have a drivers license (are able to have one) / can afford a vehicle etc., to get to a town nearby. However, if you don't - what do you do for an income to pay for that house in the middle of nowhere? Buying out in the sticks without a job isn't feasible or possible for most of us.. unless you happen to have been able to save for years or sold a few houses previously.

My (and many others') reality and your reality are very different... apparently
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Old Apr 12th 2021, 4:39 pm
  #240  
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Default Re: real estate prices in Canada sustainable?

Originally Posted by Shard
I do have a great deal of sympathy for next generation simply wanting the security of a home.
If security is the concern then rent controlled accommodation is the prudent course. Buying at a time of low interest rates carries a huge risk of negative equity which, combined with any personal financial set back may result in mailing the keys back, like an Albertan. House buying is always a speculative venture, especially now and especially in secondary markets such as suburbs; security isn't what it offers.
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