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  • Sep 15th, 2014 4:44 pm
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Banned
Mar 4, 2010
209 posts
15 upvotes
dighn wrote:
Sep 11th, 2014 3:44 pm
All prices increase of course, but the devil is in the details. Take a look at metro vancouver for example (where I am), about 1.9 mil people in 2001, 2.3 mil now. You take that, and add in an annual inflation of 4%. You get maybe 70% increase. Very naive calculation of course, but still illustrative. Do those factors explain the almost 3x increase in RE prices during that time? Not really. There are other forces at play here, like low interest rates, changes in demographic (a shift in attitude toward home ownership), foreign investment (perhaps) etc. All I'm saying is that it's completely reasonable to think that current prices are unreasonably high and that the current generation is kind of getting screwed in this regard. Of course, it's just the market at play and it is what it is. Personally I earn pretty good money, and have sizable savings and investments. I feel pretty well off, until I look at the housing prices around here. I still a lot of people "affording" these houses by cutting expenses and renting out rooms and I just shake my head.
Inflation is not uniform nor should it be...and real estate is all about location...relationship is not linear between population and re prices...

Simply put..supply of RE is finite..at least for low/med density products...moreover PPU has been decreasing putting more pressure on re market
Deal Addict
Nov 6, 2003
3418 posts
305 upvotes
Calgary
I wish foreign investors would come to Calgary, but it is too freaky cold here. Beside my primary resident and a couple rental houses, I’d love to see my properties go up like Vancouver, then, I can get out of this hell hole much much faster.
Please, please, deposit your ill-gained money here in Calgary, we welcome you with open arms and won’t complain like those cry babies in Vancouver.
[OP]
Sr. Member
Oct 18, 2010
707 posts
108 upvotes
BCAB
I have family and friends who profited quite a bit over the RE boom, pretty much doubled. Well I for fact do not want to ask or rely on my parents for help, but if need to be it... then what can you do right? I think it is just ridiculous, these prices. I make decent $, and I still feel like I am priced out.
Banned
Mar 4, 2010
209 posts
15 upvotes
bavarianboy wrote:
Sep 11th, 2014 11:28 pm
I have family and friends who profited quite a bit over the RE boom, pretty much doubled. Well I for fact do not want to ask or rely on my parents for help, but if need to be it... then what can you do right? I think it is just ridiculous, these prices. I make decent $, and I still feel like I am priced out.
how so? you can't even afford a 600sq ft condo not in downtown core?
Deal Fanatic
Mar 24, 2008
5717 posts
1833 upvotes
Toronto
bavarianboy wrote:
Sep 11th, 2014 11:28 pm
I have family and friends who profited quite a bit over the RE boom, pretty much doubled. Well I for fact do not want to ask or rely on my parents for help, but if need to be it... then what can you do right? I think it is just ridiculous, these prices. I make decent $, and I still feel like I am priced out.
Unfortunately prices are not dictated by whether you are priced out or not. They are set by what a buyer is willing to pay for something and evidently there is no shortage of buyers who want to pay the asking (and more). Renting is pretty affordable when compared to the RE prices. There is nothing wrong with renting, I don't understand why people want to buy properties at all if they feel "priced out".
Sr. Member
Jul 2, 2008
593 posts
42 upvotes
Toronto
gilbaman wrote:
Sep 12th, 2014 9:46 am
how so? you can't even afford a 600sq ft condo not in downtown core?
+1 ... a friend of mine can't afford to live close to the office so he bought a town in Barrie. $22x,xxx.
CASE CLOSED, everyone wants a 2 car garage, 4 bedrooms in the heart of the city ...
Deal Fanatic
May 1, 2012
8755 posts
6467 upvotes
Markham
I want a detached, 4 bedroom, 4 bathroom, finished basement, at least 3200+sqft, walking distance to subway, on an acre lot. I feel a $500k price tag is more than adequate. Where do I sign?
Penalty Box
Apr 16, 2012
3565 posts
684 upvotes
Greely
ksgill wrote:
Sep 12th, 2014 9:50 am
Unfortunately prices are not dictated by whether you are priced out or not. They are set by what a buyer is willing to pay for something and evidently there is no shortage of buyers who want to pay the asking (and more). Renting is pretty affordable when compared to the RE prices. There is nothing wrong with renting, I don't understand why people want to buy properties at all if they feel "priced out".
err that's pretty easy to understand. You want to buy property when you are priced out so you won't be priced out even more in the future.

People who bought single family homes at $650,000 a few years ago are patting themselves in the back today.

You want to buy Apple at $650 a share so that you won't feel priced out at $700 a share. It might even go to $1000 a share (all prices are pre-split)


What I don't understand is why people yell for Real Estate crash every single thread and every single day. Will yelling more and more actually make a crash?
Deal Fanatic
May 1, 2012
8755 posts
6467 upvotes
Markham
techcrium wrote:
Sep 12th, 2014 11:10 am
err that's pretty easy to understand. You want to buy property when you are priced out so you won't be priced out even more in the future.

People who bought single family homes at $650,000 a few years ago are patting themselves in the back today.

You want to buy Apple at $650 a share so that you won't feel priced out at $700 a share. It might even go to $1000 a share (all prices are pre-split)


What I don't understand is why people yell for Real Estate crash every single thread and every single day. Will yelling more and more actually make a crash?
To be fair, the crying has died down a lot recently. The last month or so have been fairly quiet. This is really the first RE thread to come up with whining in the last little while.

But no, whining more does not really do much.
Deal Fanatic
Mar 24, 2008
5717 posts
1833 upvotes
Toronto
techcrium wrote:
Sep 12th, 2014 11:10 am
err that's pretty easy to understand. You want to buy property when you are priced out so you won't be priced out even more in the future.

People who bought single family homes at $650,000 a few years ago are patting themselves in the back today.

You want to buy Apple at $650 a share so that you won't feel priced out at $700 a share. It might even go to $1000 a share (all prices are pre-split)


What I don't understand is why people yell for Real Estate crash every single thread and every single day. Will yelling more and more actually make a crash?
I don't think you understood what I said. Why would you want to buy a property if you are priced out? You don't need the property (or Apple shares for that matter) to live your life. Just find something else to "invest" in and move on. Renting is still way cheaper than cost of ownership (for comparable properties).

Netflix stock was $19 in 2007, it's trading at $483 now (a 2600% increase). I don't see many people whine about how they have been priced out of Netflix stock, why do they keep complaining about Real Estate? Rent what you can afford and find other things to do in life.
Deal Fanatic
May 1, 2012
8755 posts
6467 upvotes
Markham
ksgill wrote:
Sep 12th, 2014 11:24 am
I don't think you understood what I said. Why would you want to buy a property if you are priced out? You don't need the property (or Apple shares for that matter) to live your life. Just find something else to "invest" in and move on. Renting is still way cheaper than cost of ownership (for comparable properties).

Netflix stock was $19 in 2007, it's trading at $483 now (a 2600% increase). I don't see many people whine about how they have been priced out of Netflix stock, why do they keep complaining about Real Estate? Rent what you can afford and find other things to do in life.
In one you live, in the other you just put some money. Imagine this:

You are now 34
You got 2 kids
You got a wife
You currently live in a small 2-bedroom apartment

You *waited* for the crash for 10 years and now you are priced out.


How do you feel now?
Deal Fanatic
Mar 24, 2008
5717 posts
1833 upvotes
Toronto
Anikiri wrote:
Sep 12th, 2014 11:29 am
In one you live, in the other you just put some money. Imagine this:

You are now 34
You got 2 kids
You got a wife
You currently live in a small 2-bedroom apartment

You *waited* for the crash for 10 years and now you are priced out.


How do you feel now?
You can live in a 3 bedroom rental, no need to be so dramatic. If you waited (your decision) and were consequently priced out, it's your own fault and not the markets. Whining is not going to help.
[OP]
Sr. Member
Oct 18, 2010
707 posts
108 upvotes
BCAB
Good thing Canada is not on the top:
http://www.demographia.com/dhi.pdf

This might be slightly outdated but gives you the median price of house vs median household income. I think that's a pretty good measure indicating unless the distribution is somewhat skewed. i.e., skewed in wealth dispurity... i.e., the quartile earns a lot more then median.
[OP]
Sr. Member
Oct 18, 2010
707 posts
108 upvotes
BCAB
Interesting...starting around page 35ish... many nice cities are on the bottom of the list there... minneapolis, dallas, houston, phoenix, chicago..I can buy a house with 2 - 3 yrs savings probably. nice weather, lower taxes.

YES... the American DREAM IS BACK!
bavarianboy wrote:
Sep 12th, 2014 11:36 am
Good thing Canada is not on the top:
http://www.demographia.com/dhi.pdf

This might be slightly outdated but gives you the median price of house vs median household income. I think that's a pretty good measure indicating unless the distribution is somewhat skewed. i.e., skewed in wealth dispurity... i.e., the quartile earns a lot more then median.
Deal Addict
Apr 19, 2014
1042 posts
991 upvotes
Anikiri wrote:
Sep 12th, 2014 11:29 am
In one you live, in the other you just put some money. Imagine this:

You are now 34
You got 2 kids
You got a wife
You currently live in a small 2-bedroom apartment

You *waited* for the crash for 10 years and now you are priced out.


How do you feel now?
ahh yes.. hurry up and get that mortgage or else you're destined to live a future life of abject poverty. Also, as per the advice of Brad J. Lamb (aka, "The Condo King"): "If you'd rather not eat cat food in your retirement, you'd better invest in condos!"

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