This personal account from Tina, a doctor making $350K pa living in Vancouver Westside in a $3Million house that she and her husband rent for $4K per month (as featured by Garth Turner at greaterfool.ca 16 Mar 2012):
“I had anger and bitterness towards the unaffordable market. Last year, I was one of those “house horny” individuals looking to get into the market. After losing out on 4 bidding wars and building up a hatred for lying, arrogant RE agents on the Westside, my husband and I decided to stop looking. It was ruining our lives! I didn’t know who was on the other side of the bidding wars but whether or not it was an Asian immigrant with a million cash or some other crazy westsider like me, it didn’t matter. Thank goodness we found greaterfool.ca. For those who comment on the fact that prices are not dropping, maybe they need to see the daily “red sheet” for the Westside that I still receive every day.
As a physician that earns approx $350k per year, this rent is affordable and still allows us to save, invest and be able to retire in 25 years. But the discrepancy in what I can rent compared to what it would cost me to buy the same house is huge! Of course all my doctor colleagues think I’m nuts to continue renting, but quite frankly Garth, if I get a big fat mortgage and a nice fancy “doctor house” as I like to call it, I won’t be able to retire….”
And the following in the comment section from another MD:
“My wife and I are happily in a similar situation. Only one other colleague that I know of in my age cohort is renting. Numerous others have large mortgages. Our department is having a very hard time recruiting because new MDs cannot afford housing in Vancouver.”
– Burnt Norton, greaterfool.ca, 16 Mar 2012 10:05pm
Sensible doctors can’t buy “doctor-houses” in Vancouver.
Vancouverites may not realize this, but this is a problem.
There is pressure on doctors to simply move to places where they can buy accommodations of a standard commensurate with their earning ability.
(And don’t anyone volunteer that they could easily buy a townhome in East Van with that kind of income. That is entirely missing the point.)