How do can people afford houses nowadays?

[iloveus]

Youre suppose to take out a loan that wont be paid off until after you're dead

Fixed

[ashin1]

Not really, the median household income in my city is lower than my personal income. I was making $35k/year before graduation

leave it to the person who doesn't even live in Alberta to become the wage expert aka doyouevenNEM LMAO

dude ignore this ignorant plug, the only thing of value he contributed to this thread was owning your home entirely means you are winning at life.

[jakobi78]

first house i bought was in 2013. It was $750,000 (White rock, BC) and i put 20% down on it.

save money!

[solidus2k3]

what down payment % boyos? thinking 10%

[Neurotoxity]

Personally, I just want to live in a cozy apartment with two GFs. I don't need to live in a house if I'm the only one going to live there (with women of course). Maybe a two room apartment if my brother and/or friends ever decide to come over. I'm not really fond of sharing my things (especially bathroom & bedroom), so it would be best for all of us to have or own space.

[2RDEYE]

Being born Asian is easy mode in life. Not sure why everyone talks about White Privilege. Asian Privilege is 10x better.

pls keep ur asian hate to chinese only. the rest of us asians hate chinese. we work hard as ****, and usually are poor as fuk. fukin hate chinese myself. rude, disrespectful, usually rich kunts. make the rest of us asians, trying to make an honest and courteous living, look bad on sight. except east indians the #1 scum of canada. chinese and east indians can go **** themselves. both are rude, bad-mannered, usually rich, kunts.

[Destor]

LOL explain to me how compound interest is different when applied to house rather than a continued return on investment. You've literally never considered the fact that the interest rates on houses right now are just over the inflation rate. Conservative investments return 6 % a year, yet here you are claiming the smart thing to do is to put your money into something that's charging you 3%. Who's the dumbass now?

Putting your money into a house when you can put it into NEARLY ANY other financial product is what's dumb. This isn't the 50s anymore. Down payments are for the security of lenders, not borrowers. Just LOL at you and your arrogance.

edit: age 35 LMAO

When you consider the risk / potential stress involved and that your investment gains will probably be taxed, I'd say the gap there is less significant. That gap widens if you have big $$$ to throw around, but people with big $$$ have experts handling their money and advising them. And they are almost certainly not paying down their mortgage and low-interest debts because it's much easier for them to make big returns.

For the typical person, plugging money into a mortgage is a guaranteed, stress-reducing ROI. If someone is investing into a retirement account of some type and is also paying down their mortgage with excess cash, they're not doing it wrong

[Peacening]

Yep op the rich are getting richer and the poor are getting poorer

It's been happening for about 50 years now but the housing market bubble masked it to the general public.

[bodymovesyou]

Bought my house in the GTA a couple years ago for $716K now it's worth over $900K

Sorry boyo, tours over before it began for you.

[TheRealCartman]

OP I'll tell you how I did it. Not saying this will work for you.

While in school lived at home, stayed at home for 1 year after getting full time job, saved as much as I could. Bought a 1 bedroom condo (older fairly basic building), lived in that for 5 years and paid off a substantial amount but still had some fun. From there bought a house with 20% down, no roommates or anything.

So many friends of mine are in "luxury" apartments and can never save anything after paying rent and barely use any of the buildings features.

[iradumass]

paid almost $500k for a small condo unit in downtown toronto (fuk toronto)

almost 30

come at me bro

[Peppesbodega]

Thats is not a problem bro lol!!









































































except dink so big it needs its own garage

[kennyreid95]

Seriously these **** semi-detached you need like a 40k down payment for one. Is everyone rich or am i missing something

Ontario GTA btw

the system house market unfair system

[rjones416]

paid almost $500k for a small condo unit in downtown toronto (fuk toronto)

almost 30

come at me bro

this is gonna be me soon. how much did you put down?

[Evil_D]

About 6 years ago I offered a deposit of about 30,000 for a $350,000 house but they didnt take it.
Of course it would have demonstrated i was able to save which is something.
I didnt complain because I was just happy to have a home loan.
Im Australian by the way.

[AutistTrigger]

What's the longest mortgage you can get in Canada OP?

[FastBack6]

the only people that i know that own houses are trust fundies and tradies. The same people that can actually afford to have kids without having to go on welfare.

everyone else is suffocating (!) on that student loan time.

This. I very much regret wasting so much time getting a degree. Should have been plumber or the guy that installs HVAC systems on the top of Amazon warehouses.

People would laugh at me driving a work van and I'd be laughing all the way to the ATM to withdraw some cash out of my $100,000 savings account.

Seriously, it's depressing.

[apo99]

even homes here in Montreal are going up nothing decent near me for under 400k

[n2wn]

I'm not sure if anyone has said this here - but buying has loads of downsides:

- Constrains you to living in one area (makes moving for opportunities harder)
- Having to pay maintenance when things break / insurance / property tax / HOA
- Can't move if bad neighbors move in. Bad neighbors can also lower property value

I rent a condo worth ~900K for 3K/mo, which is a pretty terrible return for the landlord. If you're in a big city, renting makes more sense than buying right now IMO.

[MrBungle11]

a 20% down payment here is at least $140k now. I cant see how a single person could save up even 10% with the cost of rent unless they lived at home with their parents

[vulgoo]

Toronto LOL

[dubbwebb]

can people are just like everyone else bro dont discriminate

[gatovolador]

Used to be if you were a cookie cutter mid level blue collar worker you could buy a modest home. Not anymore.

AirBnb also carries a significant amount of blame. You can make way more renting your place out than with roommates; to the point where people buy properties just for this.

Low six-figure jobs are not enough to buy a house on the west coast anymore in a nice area in the big cities. I don't think the poors can do much about it, but it's going to hurt our demographics in 3 decades when an entire generation has decided not to have kids because too expensive, doesn't have a house and no savings.

EDIT: For example, let's say you want to buy a house in Seattle. Median price is $800k, so 20% down payment is $160k, with $4k mortgage payment per month.

Let's say you make $100k, take home is $70k (no state income tax in WA). Live with parents, save $30k a year in rent and food, you'll need almost six years to save up for a down payment. Unfortunately, your biweekly paycheck is about $2.5k, so you will spend almost all your money on your mortgage payments.

Now, this is for the single man who can deal with being house poor by having roommates, which is the only way this works. Imagine you have kids; you are in a ****ing world of hurt (in the US, public school blows). You can't afford that ****.

[tunafishha]

I'm not sure if anyone has said this here - but buying has loads of downsides:

- Constrains you to living in one area (makes moving for opportunities harder)
- Having to pay maintenance when things break / insurance / property tax / HOA
- Can't move if bad neighbors move in. Bad neighbors can also lower property value

I rent a condo worth ~900K for 3K/mo, which is a pretty terrible return for the landlord. If you're in a big city, renting makes more sense than buying right now IMO.

Define "bad neighbors"

[Mythenthefang]

I'm not sure if anyone has said this here - but buying has loads of downsides:

- Constrains you to living in one area (makes moving for opportunities harder)
- Having to pay maintenance when things break / insurance / property tax / HOA
- Can't move if bad neighbors move in. Bad neighbors can also lower property value

I rent a condo worth ~900K for 3K/mo, which is a pretty terrible return for the landlord. If you're in a big city, renting makes more sense than buying right now IMO.

Unpopular opinion but you a smart man.

Also have to consider the opportunity cost - paying down a mortgage for 10 - 30 years versus making a better return elsewhere.

[gatovolador]

Also have to consider the opportunity cost - paying down a mortgage for 10 - 30 years versus making a better return elsewhere.

Mortgages are one of the few ways peasants can use debt to their advantage. You aren't getting a $1m loan with tax-deductible interest for random ****, are you?

[vulgoo]

Miring

[DSTEE]

Have someone to buy with - bam 50% cheaper


regular sources of help people get by pure luck:
-inheritance (cash and/or property)
-parents help out by being a guarantee (several friends bought houses with no savings because of this)
-parents sell their house and buy two smaller ones (my parents talked about doing this for me)


Have a gf with inheritance/help too and it becomes pretty affordable, but maybe you'll need to wife her up for that. If you're buying on your own you gotta stack dat bread cuz

[Aristotelian]

Seriously these **** semi-detached you need like a 40k down payment for one. Is everyone rich or am i missing something

Ontario GTA btw

I was going to answer this thread seriously given the digression that followed, but:

im still in school driving my first car

Just lol.

So,

1. You live in the GTA;
2. You think 40k (CDN, no less) saved for a downpayment on a place makes someone "rich"; and
3. You're still studying.

From 1->3 you show you're pretty clueless.

There are some good posts in this thread but even some of those are unfortunately full of cope (declaring Toronto a complete wasteland that nobody would want to live in - umm, Forest Hill? Near High Park? Rosedale? Inb4 'but the houses start at 1.5m!' - guess what? Generational/inherited wealth has always skewed purchasing power).

If you're not coming from money your best bet is to buy a place with a speculative mindset, and try to 'move up' that way. But you'll need a solid understanding of property markets to do this, in addition to some luck. But your OP wasn't that serious anyway so honestly I have no idea what I'm doing here except providing a PSA I guess. Happy new year.

[n2wn]

Define "bad neighbors"

People who don't maintain property, landlord who rents to noisy students, illegal activity, etc.

Your house value is highly dependent on the neighborhood. If the neighborhood becomes less desirable, then that costs you $$$. HOA's are designed to help prevent this from happening, but it can still happen.