The Decline of Vancouver.

b) make buying your own house a priority and make the needed sacrifices to your lifestyle for a (relatively) short amount of time to make that a reality.

In Nelson, not Vancouver, right?

In Nelson, not Vancouver, right?

I'm in further in the middle of nowhere, but yea sure I'll bite.

guy makes $100k a year in Vancouver and is lamenting that it's not worth trying to save $30k to put a down payment on a house because real estate prices rise $100k at the same time. If you're putting down %5 to get financing from a bank then you'd need an extra $5k if the prices went up $100k.

Whether or not you think buying an overpriced house in Vancouver is a good value is up to you, but if you're making that kind of money is the extra $5k you'll need for a down payment really standing in the way of buying? Thats pennies if you're considering a mortgage for a million bucks or something crazy like that.

I'm in further in the middle of nowhere, but yea sure I'll bite.

guy makes $100k a year in Vancouver and is lamenting that it's not worth trying to save $30k to put a down payment on a house because real estate prices rise $100k at the same time. If you're putting down %5 to get financing from a bank then you'd need an extra $5k if the prices went up $100k.

Whether or not you think buying an overpriced house in Vancouver is a good value is up to you, but if you're making that kind of money is the extra $5k you'll need for a down payment really standing in the way of buying? Thats pennies if you're considering a mortgage for a million bucks or something crazy like that.

TIL that you only pay 25% in taxes on $100k.

I'll concede that your $100k Vancouver buddy can buy a much smaller home than your $100k Nelson buddy, even with an average student loan of $35,000.

http://grammarist.com/usage/one-in-the-same/

You're welcome.

Would you accept "one 'n the same"?

I'm in further in the middle of nowhere, but yea sure I'll bite.

guy makes $100k a year in Vancouver and is lamenting that it's not worth trying to save $30k to put a down payment on a house because real estate prices rise $100k at the same time. If you're putting down %5 to get financing from a bank then you'd need an extra $5k if the prices went up $100k.

Whether or not you think buying an overpriced house in Vancouver is a good value is up to you, but if you're making that kind of money is the extra $5k you'll need for a down payment really standing in the way of buying? Thats pennies if you're considering a mortgage for a million bucks or something crazy like that.

the guy making a $100K with $50K down payment can only afford a mortgage of about $550K or a home price of $600k. he's not buying a house. hell, depending where in vancouver he wants to live all he may be buying is a one bed condo. the market here has be bad for a while, but the last year has been just fucking insane. i figure another year at this pace and you'll see sales fall off a cliff with the exception of foreign money. at some point the market will dry up as locals here won't be able to afford anything.

Peeps in front unit of our duplex paid $799,000 to get in just over a year ago. Dude was telling me couple wks ago a real-a-snake agent was telling him he could now get $899,000 no sweat.
So don't matter if you get in over your head, you still can make quick $ and run, eh?

its surrounded by mtn so no where for the city to expand, its really close to main land china ;) so Vancover probably has more in common with Hong kong …than just a LOT of chinese people

Hong Kong is not like Vancouver in one very important way - it is ultra-high density. Hong Kong is about 1/2 the size of the GVRD (1,100 vs 2,200 sq km) with 3X the population, or basically 6 times the population density. Only 24% of the land in Hong Kong is actually developed.

"Up to 40% of Hong Kong is made up of country parks and only 24% of the territory is built up. Agriculture land accounts for 6% of Hong Kong and the remaining is undeveloped up land, which includes smaller islands, village housing, steep slopes, open storage facilities and vacant government sites."

http://www.forbes.com/sites/beelinang/2015/04/03/hong-kong-real-estate-is-the-lack-of-land-a-myth/#7511eea23d1b

I'm 30 years old; I'm part of the young generation. Not to generalize but looking around I can say that the majority of my peers make good money (better than me) but don't know how to save, it's blatant. You make great money; financial constraints that might limit someone who makes mininum wage do not exactly apply to you.

I'm banging my head against the wall trying to figure out how you can't save or get ahead making $100k a year. What kind of car/truck do you drive? Do you have an $8k carbon fiber wonder bike in the garage or are you riding something a couple years old? Do you have an expensive coke habit that's gobbling away all your spare money?!?

As often is the case, you've nailed it.

As often is the case, you've nailed it.

Now how's about median income?

blah blah blah this guy could easily buy a house if he canceled his netflix account and ate mr noodles in the dark with 10 roommates blah blah bah…. at some point the market will dry up as locals here won't be able to afford anything.

Did I read right that people are having their rent increase 40% .. I mean it's not like they aren't already paying nearly 2 gs a month This is where things will get UGLY IMO.

I'm in further in the middle of nowhere, but yea sure I'll bite.

guy makes $100k a year in Vancouver and is lamenting that it's not worth trying to save $30k to put a down payment on a house because real estate prices rise $100k at the same time. If you're putting down %5 to get financing from a bank then you'd need an extra $5k if the prices went up $100k.

Whether or not you think buying an overpriced house in Vancouver is a good value is up to you, but if you're making that kind of money is the extra $5k you'll need for a down payment really standing in the way of buying? Thats pennies if you're considering a mortgage for a million bucks or something crazy like that.

Regarding the example about how you save an extra $30k and the place goes up in price $100k in the meantime - the point isn't that you have to save another $5k for the minimum down payment. The point is that there is no sense in trying to save extra money to make a bigger down payment on a place (ie. something a conservative responsible home buyer would do in a normal housing market) because by the time you've saved the extra money the house has already gone up in price at a much higher rate than you are saving so you are now worse off overall by $70k (which is the extra mortgage you are taking out vs. if you just purchased right away). And this is a big reason why people are panicking and trying to buy a place ASAP, which just fuels the fire overall.

Did I read right that people are having their rent increase 40% .. I mean it's not like they aren't already paying nearly 2 gs a month This is where things will get UGLY IMO.

what? you totally botched the quote, that's not what i said or was referring to.

Regarding the example about how you save an extra $30k and the place goes up in price $100k in the meantime - the point isn't that you have to save another $5k for the minimum down payment. The point is that there is no sense in trying to save extra money to make a bigger down payment on a place (ie. something a conservative responsible home buyer would do in a normal housing market) because by the time you've saved the extra money the house has already gone up in price at a much higher rate than you are saving so you are now worse off overall by $70k (which is the extra mortgage you are taking out vs. if you just purchased right away). And this is a big reason why people are panicking and trying to buy a place ASAP, which just fuels the fire overall.

Exactly. I think also a lot of my peers (Me: 34, making decent money, but also spent a long time in grad school, so still paying down student debt, and will be for the foreseeable future) see how far off the dream of home ownership is and simply give up on the idea. I think this one of the subtle things dyed in the wool capitalists fail to appreciate about the current state of the free market. Yes, hard work and financial discipline should be motivated by the potential pay offs, but when the goalposts are so far out of reach a lot of people decide it isn't worth it, and either aren't motivated to work the extra hours all the 'job-providers' think they should, or decide to buy all that crap they want in the short term and buy that fancy car/bike/computer/smartphone/whatever on credit instead.

what? you totally botched the quote, that's not what i said or was referring to.

Admit it Syncro. You want us all eating Mr Noodles!