From ‘As a young Canadian, the current real estate market makes me sad. What is your view?’ a thread at reddit.com started 24 Nov 2012. [hat-tip poster_with_many_handles]
“I was born and raised in Canada and as a young adult, I want to be able to start a family and buy farm property in Alberta, not too far from a major city. However, the current real estate market makes this dream rather hopeless unless I want to owe my life to a bank, if I can even qualify for the massive loan I would require. I am curious what other people’s view is on real estate in Canada?” – slowbreeze
“I live in Toronto and I’m probably never going to be able to afford a house if I also want kids.” – Mun-Mun
“Could someone explain why housing prices have gone up so much in the last few decades? Why are houses not being built to meet the demand and keep the prices in line with inflation?” – wugitor
[EXCELLENT questions. Watch how your college economics professor tries to squirm out from under those. Housing costs in Canada should rise at the rate of inflation (more specifically, wage inflation). Period. Speculative manias distort from that, but the effects will be temporary. -ed.]
“My dad and I have the same career (dentist). He bought his 4-bedroom, detached Toronto home in 1979 at the age of 26. This house is now worth in excess of $1,000,000. Imagine a 26 year old buying such a house now! I am 29, and despite having the same career I am unable to afford a home, let alone a detached house. The times they have changed.” – Ostracized
“I just bought a very nice recently renovated tri level split in my city in the nice part for 160k, granted I live in a small city of about 80 thousand, and it isn’t as exciting as Toronto or whatever, but I paid 20% down, and have very small mortgage payments, I make a decent living and have quite a bit of disposable income. I travel at least twice a year and generally buy things I need. I think it all depends on where you live. Live somewhere smaller and you can get a lot for your money.” – PartyMark
“Move to Windsor Ontario. Houses for $50-150k. (And more). I lived in Toronto, moved to Windsor because paying $250k for a condo, or $350-$550 for a starter home is absurd. I bought a 4 bedroom, 2 bath w/pool for $130k.
I would never move out west or to a big city… It is obvious that average Canadians can’t afford to pay off a $500k mortgage. They are just hoping to sell for a profit. Someone is going to be left holding that bag… And it isn’t going to be me.” – Bortology
Bortology said: “It is obvious that average Canadians can’t afford to pay off a $500k mortgage. They are just hoping to sell for a profit. Someone is going to be left holding that bag… And it isn’t going to be me.”
Sensible young chap.