“Friends with $100K income bought a $900K house. In order to be approved, they planned on renting their basement. This week they obtained a quote for the renovations of the basement: $50,000. They don’t have the money, and the basement cannot be rented unfinished. They are in big trouble.”

painted turtle at vancouvercondo.info 18 Mar 2010 9:29 pm and 19 Mar 2010 5:54 pm

“My friends bought a $900,000 house a month ago. Their family income is $100,000 (they have 2 kids). I do not know how they got a mortgage, but anyway, this is just the average house price/income ratio in Vancouver. Two weeks before moving in, the husband said: “I can feel torture has started and it will last for 35 years.” Charming. In order to be approved, they planned on renting their basement. But this week they obtained a quote for the renovations of the basement: $50,000. Of course they don’t have the money, and the basement cannot be rented unfinished. They are in big trouble.”…”I do not know exactly how their relatives are involved, but they are backing up the mortgage in some ways. However, it is clear they are giving a signature but not a single dollar.”

“I know another family (3 kids) who heavily borrowed from their relatives to buy a 2 bedroom, “for a few years, until we can buy a bigger place.” It has been 5 years. They cannot buy a bigger place, they cannot give the money back to their relatives, and the elder kid (teenager) is not very happy sharing a bedroom with two smaller kids.”

2 responses to ““Friends with $100K income bought a $900K house. In order to be approved, they planned on renting their basement. This week they obtained a quote for the renovations of the basement: $50,000. They don’t have the money, and the basement cannot be rented unfinished. They are in big trouble.”

  1. I have a friend…just got married last year…
    He and his wife, who are both employed by Coast Mountain Bus Co…so well paid by average standards…combined income of over 110k per year.
    After they got married they bought a new condo in Surrey and furnished it…
    I was suposed to go for dinner with them tonight, but they had to cancel because they can’t afford it due to the cable bill taking the last of their cash out of their account and all their visa’s being maxed out…
    Boy am I a happy renter.

  2. Pingback: Married couple; Combined Income 110K; Bought new condo in Surrey 2009; Cancel dinner with friend; Visa maxed out; Cable bill used last of their cash. « Vancouver Real Estate Anecdote Archive

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