Unexpected Call From Long Time Friend – “They bought a $240k townhouse and are moving in next month, and he is afraid that they don’t make enough to pay for 2 cars and a mortgage.”

“I had an unexpected call from long time friend that i havent talked with for in a long time. He was asking if i could help him in selling his car, i wondered why he wanted to sell he replied that his wife’s parents pre approved them for a mortgage recently thru a realtor friend who only charges $5k for the pre approval and other helper services. And now they bought a $240k townhouse and moving in next month and he was afraid that him and his wife don’t make enough to pay for 2 cars and mortgage. So he was considering selling one car or find a second job. I was speechless. There are just so many things wrong with this story that it left me speechless, he is really nice guy and a good long time friend, and i could tell he was emotionally concerned at this point. All I offered was to help him move and a bit of encouragment that its nice to have your own place (i didn’t really know what else to say).”
SunBlaster at VCI 21 Sep 2012 6:22pm

4 responses to “Unexpected Call From Long Time Friend – “They bought a $240k townhouse and are moving in next month, and he is afraid that they don’t make enough to pay for 2 cars and a mortgage.”

  1. Isn’t it too early for scary Halloween stories already?

  2. So he chose a house over a second car? Oh the horror.

    Hey if he wants to bury himself in debt – more power to him. I would be more concerned if he told you that he was running up the credit cards to make ends meet.

  3. Nice realtor friend his parents have – who “only” charges $5k for the pre approval and other helper services. It is usually done at the bank or by the mortgage broker free of charge! And I bet he was the one that got the commission when he bought them that townhouse, splendid!

  4. Also, $240K townhouse, even if they borrowed 100% of that, at current low rates, the mortgage shouldn’t really exceed $1500/month, add in say $800 per month for property taxes, insurance, and strata fees, add in another say $200 for utilities, you are looking at $2500/month in housing cost or about $30K annually. It sounds like a dual income family, and if there are no kids, I don’t really see hwo they can’t afford a mortage and 2 cars if they make the average $65K annual family income.

    It will be super tight and no savings for sure, but by current Vancouver definition of affordable, it definitely should be.

    Now if you are talking about affordable as in like able ot have savings for emergency, retirement, children, and not living on mac & cheese then yeah, it is pretty tight.

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