First what I am trying to understand is why did you decide to start looking now for a place when the market is so red hot and not like 2-3 years ago. This is what still baffles me and I am trying to understand, I knew I wanted to own a home for a very long time and all my goals where around saving up for it and as soon as I saved up enough money and had enough proof of my self employed income I went for it.ttrevor wrote: ↑Nov 12th, 2017 6:09 pmMy wife and I are 30 years old with a combined income of $100K. We rent a 1 bedroom apartment in Kitsilano for $2000 per month and save approximately $1500 each month. Our combined savings is approximately $100K.
We want to buy a place and start a family. Since a two bedroom in Vancouver starts at 1 million we would need to double our income so that's out of the question.
With our income we can afford a $500K place, which would mean moving 30 minutes outside of the city for two bedrooms.
Also, a 20% down payment would eat up our entire savings ($100K) and the $1500 per month that we are currently saving would have to go towards the extra cost of mortgage and of raising the kid(s).
Sacrificing our entire retirement fund in order to start a family seems risky and we enjoy living in Vancouver but we also want to be property owners and have children.
What would you do in our situation?
I would have loved to live in Vancouver somewhere as like 90% of all my future jobs will be in DT and would cut down on my commute but I would never be able to afford it(well I probably could but it would been pay check to pay check and would never be able to do anything fun for the next 25 years).
You have to set realistic exceptions and understand that you have to make scarifies, heck having in-suit laundry was on my nice to have list. I ended up buying a 2 bedroom/1 bath apartment in a 40 year old wood frame building in Coquitlam. I ended up getting in-suit laundry but it was super getto, the dryer was in the second bedroom closet and washer was in the kitchen pantry. It was not ideal but I was happy to have it in-suit.
You have to start from somewhere and work you way up, back in our parents days they had to start in a "starter house" and work they way up to a nice house, for us we got to start in 40 year old wood frame buildings and work our way up.
The reason why in the beginning I said, why I don't understand people seemed to be holding off buying something years ago baffled me is shorty after I bought my place, we were approached to sell the entire building to developers(this was totally unexpected I knew it would happen one day but I thought like 10 years from the time I bought it....but after I bought the condo market went crazy so I guess developers sped up their plans), so I had to go look for a new place and I just could not understand the people I saw going to open houses, they had like kids 14-16 year old range and I was like "where have they been living all this time? why did they start looking at the hottest time ever".
I also joke with people today people would literally kill for my old place that I paid 210K for back in 2016, and no one would care that it was beside a funeral home(before 2016, when I bought people would walk into that complex see the funeral home across the street and walk out). Which I could never understand again as if the place looks good and is maintained well , why does it matter if it is by a funeral home or a 40 year old building, but I guess people just had in that mind set they need to have the best of the best and have to show off to everyone(I know people they had to buy brand new in Vancouver, have to drive Audi's and now complain to me how they have no money, the place is so much smaller than my old place and they can't stand the DT noise)
So if you really want to buy a place here, you have to be prepared that your not going to get half of what you want on your wish list, your going to have to buy a old condo somewhere far from Vancouver(think Coqutilam or Surrey) and you still will be unfortunately be paying a lot of money for it now in this super crazy market.
If that does not sound like something you want to do then you go to continue living in rent and forget the idea of owning here. The other flip side I guess what you could do if it is for you, is try to buy a place in there areas and rent it out and stay where you are now. At least your in the market and if you want to move further out one day you got a place, that you can move into or sell (probably for a profit)
I think it will be closer to like $1900 a month based on 400k @ 3% over 25 years. Then probably around what you said for strata, but you also have to factor in utilities and property tax what will and probably another $200 on top of it. Then there is all the other things like condo insurance to consider and possibly hydro(that depending on what you rent you may not have to pay) it all adds up.