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whattodo
Real Estate Talker
Posts: 60
Joined: Tue Oct 27, 2015 10:04 am

Re: New to Real Estate (Vancouver) - Need Strategic Advice

Mon Feb 01, 2016 10:03 pm

Westcoastfella,

I guess we disagree then.

A decent house (non teardown) in Burnaby or Richmond is probably 1.2 million? If a family makes 150K they could buy it but it would use up a lot of their income to do so.

As for the 15 year old I will stick with my original answer. If he doesn't have a good paying job & other locals make more and can out bid him he won't be able to buy a house. I am ok with that. If in 10 years (when he is 25) he has a high paying job and a house costs 2.5 million due to foreign buyers & he can't afford to buy one. I think that's a tragedy. But, its my opinion. You have your opinion too.

Demonizer,

I now many many realtors too. Guess who they ALL say are buying all the houses over 2.5 million? (West Van, Shaunghnessy, North Van, Kits, etc)? Hint: It's not Canadians. Some of these realtors even fly the foreigners over for the weekend just to look at houses to buy. They don't even list the houses for sale to Canadians. Then they double end the commission as the buyer & selling agent.
 
tdma800
Real Estate Talker
Posts: 2977
Joined: Wed Jan 23, 2008 9:12 am

Re: New to Real Estate (Vancouver) - Need Strategic Advice

Tue Feb 02, 2016 7:22 am

westcoastfella wrote:
whattodo wrote:
Not everyone should be able to afford a house. I agree with that. But, if a family is in the top 10% of earners in Vancouver city (say $150K - $200K a year income) and they can't afford a house that is a problem.This is caused be foreign money not local incomes.

I have friends living near Seattle & Portland. They earn $100K total family income (work part time) and a house is 500K - 600K. That same house in Vancouver is 1.5 million.

Trickle down effect is causing prices to go up very high even in Langley.

What's your advice to a 15 year old kid without an inheritance who was born in Vancouver?
Would you tell him that even if he is a doctor he may not be able to buy a house where he grew up. Foreigners own everything so you may as well leave the city/country. Sounds very Uncanadian to me.


If you are making 200K a year, then you CAN afford a house in the immediate LM (Burnaby, Richmond, New West, perhaps even some parts of Vancouver), even with a moderate downpayment. That you choose not to buy that house (for whatever reason) is not the same thing.

As for the 15 year old kid... if owning a SFH in the city of his choice is the most important thing to him in life, then I would suggest that he plan to leave Vancouver, or plan to make compromises on where he chooses to live if he stays. There is nothing wrong with moving to a different city to work when you leave home, lots of Canadians do it.

There are a lot of jealous people out there putting down other "people" for their own shortcomings. You don't need to spend 1.2m for a house in vancouver . There are even some right now on the mls , brand new , in the house, not townhouse, duplex, apartment, etc section in vancouver for under 1 million and that are brand new
 
scoobydoo
Real Estate Talker
Posts: 155
Joined: Tue Oct 15, 2013 8:51 am

Re: New to Real Estate (Vancouver) - Need Strategic Advice

Tue Feb 02, 2016 9:54 am

westcoastfella wrote:
If you are making 200K a year, then you CAN afford a house in the immediate LM


That's a big if.
 
reallyreal
Real Estate Talker
Posts: 418
Joined: Thu Apr 10, 2014 7:17 am

Re: New to Real Estate (Vancouver) - Need Strategic Advice

Tue Feb 02, 2016 10:07 am

scoobydoo wrote:
westcoastfella wrote:
If you are making 200K a year, then you CAN afford a house in the immediate LM


That's a big if.


Good luck buying a house making $200K per year.
 
westcoastfella
Real Estate Talker
Posts: 1582
Joined: Fri Mar 23, 2007 8:11 am

Re: New to Real Estate (Vancouver) - Need Strategic Advice

Tue Feb 02, 2016 6:50 pm

scoobydoo wrote:
westcoastfella wrote:
If you are making 200K a year, then you CAN afford a house in the immediate LM


That's a big if.


I'm just using the numbers provided by whattodo - clearly its the minority, but there is certainly a segment of the population that is making a household income of 200K/year. Amongst the 40-something double professional income crowd its likely more common... 200K is probably the minimum household income in my own circle of friends, but that is admittedly a small sample set

reallyreal wrote:
Good luck buying a house making $200K per year.


You're not buying a house on the west side on that (unless you have a huge downpayment), but you can easily qualify for a mortgage on a million dollar home with 15% down with that kind of income. Still places in the LM where a million gets you something. And with that kind of income, that family probably has some significant savings to put towards a house, so maybe 15% down is low.

Whether or not it is a good idea, it is certainly possible, for those that MUST have a house to survive.
 
reallyreal
Real Estate Talker
Posts: 418
Joined: Thu Apr 10, 2014 7:17 am

Re: New to Real Estate (Vancouver) - Need Strategic Advice

Tue Feb 02, 2016 7:56 pm

westcoastfella wrote:
scoobydoo wrote:
westcoastfella wrote:
If you are making 200K a year, then you CAN afford a house in the immediate LM


That's a big if.


I'm just using the numbers provided by whattodo - clearly its the minority, but there is certainly a segment of the population that is making a household income of 200K/year. Amongst the 40-something double professional income crowd its likely more common... 200K is probably the minimum household income in my own circle of friends, but that is admittedly a small sample set

reallyreal wrote:
Good luck buying a house making $200K per year.


You're not buying a house on the west side on that (unless you have a huge downpayment), but you can easily qualify for a mortgage on a million dollar home with 15% down with that kind of income. Still places in the LM where a million gets you something. And with that kind of income, that family probably has some significant savings to put towards a house, so maybe 15% down is low.

Whether or not it is a good idea, it is certainly possible, for those that MUST have a house to survive.


I guess it depends on your definition of LM - but I don't think you would have much luck finding a house for $1M these days. At least not somewhere within 40 minutes of DT (which is too far for many)
 
eyesthebye2
Real Estate Talker
Posts: 1171
Joined: Sun Jul 27, 2014 6:41 am

Re: New to Real Estate (Vancouver) - Need Strategic Advice

Tue Feb 02, 2016 11:48 pm

I sound like a broken record here...wealth buys houses, not incomes. High income plus wealth buys you more house.
 
reallyreal
Real Estate Talker
Posts: 418
Joined: Thu Apr 10, 2014 7:17 am

Re: New to Real Estate (Vancouver) - Need Strategic Advice

Wed Feb 03, 2016 7:38 am

Hard to get wealth without income. You have some secret formula?
 
tdma800
Real Estate Talker
Posts: 2977
Joined: Wed Jan 23, 2008 9:12 am

Re: New to Real Estate (Vancouver) - Need Strategic Advice

Wed Feb 03, 2016 7:40 am

eyesthebye2 wrote:
I sound like a broken record here...wealth buys houses, not incomes. High income plus wealth buys you more house.

This. Its hard for people to understand that you are not legally required to have income to buy a house unless your down payment is low.
 
westcoastfella
Real Estate Talker
Posts: 1582
Joined: Fri Mar 23, 2007 8:11 am

Re: New to Real Estate (Vancouver) - Need Strategic Advice

Wed Feb 03, 2016 8:46 am

tdma800 wrote:
This. Its hard for people to understand that you are not legally required to have income to buy a house unless your down payment is low.


If you have a "downpayment" at all, then you are getting a mortgage to fill the gap, and any kind of mortgage (no matter how small) legally requires proof of income. Income doesn't matter if you are buying the house outright.

eyesthebye wrote:
I sound like a broken record here...wealth buys houses, not incomes. High income plus wealth buys you more house.


Perhaps we have a different definition of "wealth", but all the people I know buy houses with income. They might use some of their "wealth" to provide a downpayment, but incomes are paying the mortgage.

I guess it depends on your definition of LM - but I don't think you would have much luck finding a house for $1M these days. At least not somewhere within 40 minutes of DT (which is too far for many)


I don't consider anything south of Richmond or east of United Blvd in Coquitlam and New West as LM. 40 minutes out of downtown gets you pretty far out - South Burnaby, most of New West, does that get you to Tswassen? Certainly south Richmond. There are houses to be had for <1M at the ends of those roads.
 
tdma800
Real Estate Talker
Posts: 2977
Joined: Wed Jan 23, 2008 9:12 am

Re: New to Real Estate (Vancouver) - Need Strategic Advice

Wed Feb 03, 2016 8:47 am

income doesnt matter if you have a large down payment
 
reallyreal
Real Estate Talker
Posts: 418
Joined: Thu Apr 10, 2014 7:17 am

Re: New to Real Estate (Vancouver) - Need Strategic Advice

Wed Feb 03, 2016 10:39 am

tdma800 wrote:
income doesnt matter if you have a large down payment


So how do you get a large down payment without income? .... hope you find a large suitcase as your strolling down the street.

you aren't that bright, are you?
 
 
Jacobi
Real Estate Talker
Posts: 45
Joined: Sun Feb 17, 2013 7:38 pm

Re: New to Real Estate (Vancouver) - Need Strategic Advice

Thu Feb 04, 2016 10:30 am

rofina wrote:
Jacobi wrote:

Late to the thread but this has to be one of the better posts I've seen on here in a long time.

Working in the industry in an analytical role, I knew that the majority of detached sales in Vancouver, Burnaby, Richmond, Coquitlam were purchased by mainland chinese people. When I bought few years ago I just thought Real estate prices would increase in line with inflation. But who knew that prices would be increasing at 30% per year like they did in 2015. What's crazy is that the later half of 2015 and the start of 2016 isn't slowing down and I think 2016 will be another 5-15% increase. Prices are not going to come down or stop because the main factor - a global economy and the exodus of funds out of China - will continue to drive up desirable Real estate markets in the world.

It's not just Vancouver, look at Australia, Singapore, London etc. However with Vancouver's proximity to Asia and a large local Chinese population, it makes it more attractive. The thing is those other places had politicians that installed real estate restrictions so their prices haven't gone up as much as ours. They still have high real estate prices, but the rate of increase is not as high. I understand that we don't want to slow down our housing/construction industry as it's a main driver of economic growth in BC, but there are policies that can still limit prices but still allow new construction / development.

Many jurisdictions around the world enforce a tax for non-locals. If you are buying a $2 million dollar detached home, what's an extra $15-30K? That's money that can be used towards city services.

I too am house poor, yes my net worth is great due to the increase in prices, but I feel like if I want to start a family, it would be tough as our place is small and isn't in the best of neighborhoods.

But what can we do? How can you move somewhere else when your career, family, friends, social network is all in Vancouver? I can't stand the cold so Vancouver really is the only option.


Sydney, London, Singapore, and Hong Kong all have turned and trending down.

Vancouver remains. Its possible its the last place standing.


Sources?

last I heard Australia is still trending upwards. I have relatives in Sydney and that's what they tell me.
 
tdma800
Real Estate Talker
Posts: 2977
Joined: Wed Jan 23, 2008 9:12 am

Re: New to Real Estate (Vancouver) - Need Strategic Advice

Fri Feb 05, 2016 2:59 am

Nearly anyone can get a mortgage in vancouver even without being in Canada simply by putting down a large higher than usual down payment
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