“She makes $60,000 a year. He earns $75,000. In their late twenties, they have $130,000 in the bank, a chunk of it a gift from his parents. Student debt is down to $18,000. They covet a house. In Vancouver.
“At least we did,” Lynne says, “until we met Malcolm.” He’s a mortgage broker, part of a national chain of brokers which (for now) will remain mercifully nameless. “We decided to go in and talk to a mortgage guy to at least find out what we could pre-qualify for,” the high school teacher (math) says. “Twenty minutes later he said that with our savings and our income he could qualify us to buy a $1 million house. We looked at each other and thought about an $800,000-plus mortgage, and got the hell out of there.”
So now they have lowered their sights. To $750,000. And given up. “That amount of money buys crap,” Lynne says. Then wisely, “Maybe we should think about moving away from here.”
This little tale is true. I tracked the broker down and confronted him. He admitted it. And defended it. Sadly, I think he believed he was actually helping a house-horny young couple who not conceive of having a family without a front porch.”
- relayed by Garth Turner at greaterfool.ca 18 Nov 2011
They can ‘afford’ to buy a Vancouver SFH, but they note the poor value they’d get, so they are thinking of moving elsewhere. – vreaa