I live in Canada where the housing prices are crazy (GTA). I'm at the point in my life where I make 70k/year and looking to save up to buy property (23 years old).
I have no inheritance money but I want to save up to buy a house or a condo. I'm wondering your opinions on what to do in this housing market where you need like 100k down payment to just buy a house.
Is a condo worth it (primarily pre-construction)? or should I wait for the housing market crash to happen?
What do you do for a living?
Housing market crash in the GTA is a meme. Condos are only a good investment in Toronto, they don't really appreciate outside of downtown.
Fellow GTA-user here.
Although I'm not in the position to be buying property in basically any market, I do worry about this sometimes myself. I mean, when thinking about the longer term picture.
On the one hand, prices in the GTA are always going up, so it's like "well if they're going to keep going up, better buy now if you're going to buy ever." But on the other hand it's like, "but CAN this keep going on forever? What if there's a crash and I end up with a mortgage on a condo that's now worth 1/2 what I paid??"
The other thing is, there's so much foreign money in GTA real estate that it throws off the value calculations that let you decide if a real estate market is overheated. Normally, you determine the value of a real estate market by comparing income to rent. The idea is that if rent is too high compared to income, prices will collapse eventually because people will start moving back in with their parents or just leaving the area. The problem with the GTA is that this logic doesn't work, because a lot of what's driving the prices up is just foreign speculators throwing money into condo units as some kind glorified bank account; I've heard they only break even on the rent money they're bringing in, they're content to just do that because it's more stable than having money in their home country where it can be confiscated by gov't.
It's all so stressful and it makes me think, "is it really viable to stay here long term?" But I'm just so used to all the shit there is to do here; I went back to my parents' shit town this past Christmas and the lack of 'everything everywhere 24 hours a day' made me want to kill myself.
I work for metrolinx
Do you think id be better off buying a house outside of downtown? They seem like theyre expensive as well. Is renting a better option?
Canadian housing prices are a scam
There's tons of available land that's a stones throw from a highway
It makes no sense Canadian housing is so expensive compared to places in Europe which have comparably affluent economies
Central bank of canada inflated this giant housing bubble we are currently in.
It will collapse soon.
Inflated house prices are being caused by government policies. They are inflating the housing for tax money and to give the illusion that the economy is doing well.
Since the 1980s the Canadian economy has been propped up by "financials", "services," and "housing." Instead of things that actually have value like mining and manufacturing. Shifting your economy to services in hard times can work in the short term, long term it is not sustainable. The housing boom will not last, what do you think is going to happen when all the baby boomers start dying off?
If you're looking for a house buy outside Toronto. You can find a larger nicer house for a fraction of the cost.
>my house 3+1 house, double car garage. Very nice, 240000. Southern Ontario.
I left toronto for this reason. Fuck toronto. My mom bought a row house, power of sale for 212k.....its worth close to 700k now. If she never bought when she did in 2006 we would be for ever rent slaves.
Such is life in canuckistan.
t. Albertan now
Sounds like Brazil desu.
>mom built house in the 80's
>spent 50k
>it worth 300k now
Canadian winters render many of these places inaccessible or a total bitch to live in.
I'm in Edmonton, also hoping that the housing market in Canada will correct, but losing faith.... Our economy has been down in AB for a year and housing prices have barely budged.
A shithole is in the city 4x my income, a nice house is 7x, and a nice acreage (what I'd really like) is 10x.
It's sad, but if they keep importing immigrants, increasing debt, and letting foreign buyers buy shit up, the correction might never occur.
You can't have sprawl fucking everywhere. That's terrible urban planning
I think can't believe the keynesian shitstains that run our economy think a massive housing bubble that prevents people from buying homes and fucks over buyers is good for the economy.
Nobody is doing anything about this bullshit.
Fuck central banks.
This world is fucking insane.
Home ownership is not some God given right
don't buy a condo, you're stuck in a strata council that tells you what to do
property taxes, maintenance and interest add up to an amount close to the increase in prices
the housing as an investment is shit pushed by banks for people without the emotional capacity to invest, but by forcing them to make a payment do
continue to rent
max out your tfsa and rrsp
if you feel good about real estate still buy some reits
invest in weed stocks
it used to be easily attainable for average canadians, but now it isn't
so we ether have people not having kids because they're stuck in a one bedroom condo, or have them commuting for three hours a day which is a lot of lost productivity
As somebody from Vancouver fuck Ontario. You little cucklords deserve everything that'll happen to you. Lets not forget Ontario is going to crash the Canadian Dollar, have you seen how much debt you guys have as a Province?
I thank myself everyday that we have a large amount of the country before we have to run into you fuckin losers.
Sincerely, British Columbia
...
>Home ownership is not some God given right
I didn't say it should be.
I said that housing prices should reflect actual market levels.
Abolish the central bank of canada.
that's basically the only thing the Canadian economy has going for itself. Gotta pump those baby boomer housing prices so they can retire nice and pretty in self delusion. It's a scam. They don't think about their children, they just see the dollar signs of their house value and think, this is great!
>that's basically the only thing the Canadian economy has going for itself.
A debt bubble?
LMAO
Let it fucking crash.
>They don't think about their children, they just see the dollar signs of their house value and think, this is great!
I know, it's really sad. They're so uninformed and the media and universities support this fucking bullshit.
I mean leftists literally think they can't buy a house because "muh evil capitalism" totally ignoring the fact it was pretty easy to buy a house in the 50s 60s and 70s. Even the 80s.
God damn fuck leftists.
i figure thats all I'd be able to do. I will continue to max out my tfsa, but I already have a good pension plan
what're some good weed stocks to buy?
There are no God given rights.
That doesn't mean that slaves can't complain about their condition.
I agree. Very sad!
I wonder if the baby boomers will care when their children grow up poor and don't have families and they don't get to have grandchildren. Maybe not.
If you got 50% down AND are planning on staying in this shithole for a while, buy now.
If you're in engineering or software, forget it. Save some money and move to the US for better salaries and quality of living.
Housing prices DO reflect actual market levels. There is more demand than supply, therefore price goes up. Basic economics 101
That's pretty good advice but regardless of how much down you got, a bubble is a bubble and GTA and Van are in a bubble, even the banks admit that now. OP is a bubble boy.
Too many lookism shitposts on biz. Very sad!
>You can't have sprawl fucking everywhere. That's terrible urban planning
Home prices falling 75% > worrying about sprawl in a country the size of the moon
Enjoy your 5 hour commute time you moron
buy gold, silver and bitcoin and wait for the housing bubble to pop
it is a bubble, and it will pop
starter home being 4x income is about right historically, that used to be the typical recommendation for deciding what you can afford. assuming a percentage increase for your wage and house equity, in 5 years you could leverage up to the 7x house, and 5 years later to the 10x.
You think people are still gonna be commuting to work in 2018 in Canada? Is Canada 3rd world or something?
How does someone fresh out of college earn 70k a year? :/
What job do you have? Were you top 20% of your class?
>Enjoy your 5 hour commute time you moron
Fucking bullshit
I can drive from Edmonton to Saskatoon in about 5 hours if I recall right
There's a shitload of empty space 30mins, 45mins, 60mins from every major downtown
Canadian housing is a rip off, they have all the downsides of living in a vast region and none of the upside