Alberta Housing Boom coming 2013

[Sugarphreak]

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[effingidiot]

:rofl:
Realtors are becoming more desperate with each passing day... no, make that "hour".
Here, read this:
http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/austerity-hits-oil-patchs-capital-spending-budgets/article4952862/

[Sugarphreak]

...

[ExtraSlow]

I think Calgary is better positioned than any other place in canada to have a strong real estate market, but still, there is a decent chance or flat or small losses.

I'm very happy that I don't plan on moving in the next five years, this volatility seems to be increasing.

[chibwack]

Damnit, I was just figuring out how to have a downpayment for next year. Might just have to save n wait.

[Tik-Tok]

So wait, the sky is falling.... upwards?

[benyl]

More room on the HELOC!!!!

[BigMass]

Buy buy buy, don’t wanna get priced out of the market! Lol it’s like Canadians felt left out of the US housing collapse and are insisting we blow up our own bubble so we can pop it.

[projekz]

I hope you're right Sugarphreak. This could mean retirement in a warm climate.:D

[vtec4life]

Either your in the market or your not. There is never a perfect time to buy so as long as you sit on the sidelines and speculate it who cares what you think (generally speaking).

Also, for people who own and dont plan on selling any time soon the volatility does not matter either.. You need a place to call home.

Yes it is great knowing your home might increase 10% but at the end of the day it doesnt really matter if your not flipping houses. Even then the rest of the houses have increased the same amount so here you are with more cash but you have to spend more to get the same thing.

Real Estate is about the long term. You will always come out ahead with real estate if your not put in the position where you must sell at an inopportune time.

[ercchry]

i never understood this waiting to buy thing based on the market. wait for a good deal to come up and just buy the damn thing.

but for me to move houses again, i would need a $100k+ gain... not worth the hassle... i fucking hate moving

[Sugarphreak]

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[ercchry]

Originally posted by Sugarphreak

haha, ditto... I try to keep my moves synced with the market cycle so I get maximum gains, but it is such a pain moving all the time.

if it was just me the move would take a day... but its not and then i get the whole "i want to spend more than one x-mas in the same house" bs :rofl:

[Sugarphreak]

...

[ercchry]

its really scary how similar our lives are

[BigMass]

Originally posted by Sugarphreak


I think you are looking at this all wrong; It is a cyclical cycle... market suddenly shoots up and becomes unsustainable, then it crashes back down, with fear of "losing out" and anxiety of not "getting in" being the primary driving factors. It is as predictable as the sun coming up and going down. Only difference is it happens much slower and tell tale signs of where it is headed are littered everywhere, plus if it crashes unexpectedly, unlike a useless stock, you can still live there and use it.


That’s valid within the framework of a stable monetary policy. The supply demand cycle of housing plays only a small roll in housing prices a days. Housing prices are manipulated with interest rates, mortgage terms, lending practices and government guarantees and incentives. Even in a strong demand market you can have a housing price plunge if interest rates decide to hit %20 and mortgage amortization periods of 15 years. But we know this isn’t going to happen because our monetary policy is low interest rates and easy money. So the best arguments for buying a house isn’t so much demand, but the fact that with time, inflation will wipe out your mortgage debt. These factors become a lot more dubious to trade on than some generic cyclical housing cycle you describe.

[HiTempguy1]

I'm screwed if this is the case. I can barely afford (realistically) to get into a $150k condo, which as a single male is all the debt I'd want to take on earning $70k/year gross. :banghead:

[Tik-Tok]

I'm in the market, and as I've said before, I would kill to have the market go back down to the same as when I bought. I could actually upgrade without having to leave the city that way.

On the other hand, maybe if my place goes over 1/2 a mill, I'll just say fuck it, sell it all, and Mrs.TikTok and I will go live on a beach for a few years :rofl:

[Disoblige]

Originally posted by HiTempguy1
I'm screwed if this is the case. I can barely afford (realistically) to get into a $150k condo, which as a single male is all the debt I'd want to take on earning $70k/year gross. :banghead:
You could -if- you had a 20% down payment. That would help a lot.

[benyl]

Originally posted by HiTempguy1
I'm screwed if this is the case. I can barely afford (realistically) to get into a $150k condo, which as a single male is all the debt I'd want to take on earning $70k/year gross. :banghead:

Huh? I bought a $400K house making $70K / year.

Student loans? Car loan?

[DeleriousZ]

So much for home ownership before 30 lol.

[ercchry]

Originally posted by benyl


Huh? I bought a $400K house making $70K / year.

Student loans? Car loan?

he is just insane, huge racing expense :rofl:

but if i was him i would get a house that is suited (jordan has one listed with two suites in renfrew in his actual range) then rent out the more expensive suites, live in the cheapest one... dont pay a dime on the mortgage

[max_boost]

Perfect. Time to cash in/out.

Can HELOC that 991 now. :bigpimp:

[dj_patm]

Can it please wait until summer-ish when I plan on buying?

PLEASE. :cry:

[ercchry]

Originally posted by dj_patm
Can it please wait until summer-ish when I plan on buying?

PLEASE. :cry:

deals are had this time of year... summer is always higher

[G]

660 brought you Wealth Street Market Updates with David Jones and Don Campbell has his own agenda.

[masoncgy]

Great time to sell out of Calgary, especially if you bought in 2007 and want to attempt to break even... lol.

[max_boost]

Originally posted by ercchry


deals are had this time of year... summer is always higher Just wait for the following correction/downturn/crash etc.

I remember early 09, everyone was so scared. Be fearful when others are greedy and greedy when others are fearful (Warren Buffet). :D

[ercchry]

Originally posted by max_boost
Just wait for the following correction/downturn/crash etc.

I remember early 09, everyone was so scared. Be fearful when others are greedy and greedy when others are fearful (Warren Buffet). :D

how did that work for you mr. stock market guru? :rofl:

[max_boost]

Originally posted by ercchry


how did that work for you mr. stock market guru? :rofl:

wNYHoI47fw0

:D

[bituerbo]

I stopped listening to the "real estate experts" a long ass time ago. Reports like this trickle out in all market conditions. Why are banks lowering their 3yr rates if we're heading into a boom?

As for $150k condo on 70k... I bought $270k house on ~$50k solo. Granted I'm driving the same 2 vehicles as when I bought 3+yrs ago... it's certainly do-able. Set a budget, stick to it.

However, if you're still paying off student loans, or making high ($500+) vehicle payments, you probably shouldn't be looking to get into something as volatile as the housing market.

That being said, I need everyone to go out right now and buy a house. Even better; a house you can't afford.

[yellowsnow]

I've attended a seminar by Don Campbell. He's been saying Alberta will be having a "housing boom" for the last 2 years. I'm sure if he keeps saying the same thing year after year, he'll get it right eventually! ;)

[Sugarphreak]

...

[Sugarphreak]

...

[dj_patm]

Originally posted by ercchry


deals are had this time of year... summer is always higher

I know. My hand is being forced. We,ll see if I can find a short rental lease though.

[Xtrema]

Housing start is slowing. There Is a glut of condos. A lot of projects has been on hold the last 2 quarters.

Suncor is scaling back projects.
Encana has no money and staffs are starting to jump to Cenovus.
HP just fired 100 in town
ATCO just let go a few I heard
Transatla is going to let go 165 this week
An oilsands firm just file for bankruptcy and rid of 400.

I see softening of market coming.

[Ntense_SpecV]

I bought in the dead of winter 2010. February to be exact...lots of availability. I didn't lowball the builder but I did get it for under asking price, so I'm hoping the market soars next year. We weren't in the position to catch the same rise with the boom before so I hope I catch the next one.

[bastardchild]

I call BS. Realtors have been saying the same shit every year to keep their bills paid. There's only a handful of execs that can afford half million dollar average homes in this city, and their predicting its gonna go up? Trends mean nothing, there has to be a reason for prices to go up, timing doesn't do shit.

[Sugarphreak]

...

[benyl]

Originally posted by Xtrema

Encana has no money and staffs are starting to jump to Cenovus.


Huh? Where did you hear that? There is a lot of churn between the companies and that has been happening since the split. Encana has no Money? hahaha, your information is out to lunch.


Originally posted by Sugarphreak

^^ My feeling is you are going to clean up if you signed a contract to build in 2010.


Signed the deal to build my house in Nov 2010. Took possession in January 2012. Nov 2010 was the bottom. Builder was offering $30K in free upgrades.

Now, builders are gouging buyers on everything with no regard. If they don't sell to you, the next person will take your lot.

[dawerks]

Originally posted by benyl


Huh? Where did you hear that? There is a lot of churn between the companies and that has been happening since the split. Encana has no Money? hahaha, your information is out to lunch.





Encana is technically 5 BILLION in debt. So yeah, technically they have no cash. But most corporations carry massive debt. It doesn't mean they don't have 'cash'.

Suncor; 21 Billion in debt.
TD; 171 Billion debt (but they have 178 Billion in Cash unlike the others above).

It's all relative.

Buy a house to live in. Buy a house to flip, do what your gut and head tell you to do. If you're taking advice from a forum, do your own due diligence. I've read some amazing things on the net that just were not available to me when I was younger.

[chibwack]

Originally posted by bastardchild
There's only a handful of execs that can afford half million dollar average homes in this city
I too would like to know where you get this idea... Hell, I just read not too long ago the average home price is 450,000 here.

[ExtraSlow]

Every 10 year engineer or geologist in this city can not only afford the half million dollar home, they have probably got it pretty much paid off. Half million bucks ain't what it used to be for O&G folks, or 89coupe.

[89coupe]

Originally posted by bastardchild
I call BS. Realtors have been saying the same shit every year to keep their bills paid. There's only a handful of execs that can afford half million dollar average homes in this city, and their predicting its gonna go up? Trends mean nothing, there has to be a reason for prices to go up, timing doesn't do shit.

Huh?

What year are you in?

I work with people who's bonuses are a half million dollars.

[Zan]

I signed earlier this year to build and our possession date is in Jan. We have had delays due to massive increase in our particular builder's sales. The sales manager said they have not seen this much people building since pretty much the last boom. Something's definitely up. Just not sure if this surge is going to carry over much of next year.

[89coupe]

Originally posted by Zan
I signed earlier this year to build and our possession date is in Jan. We have had delays due to massive increase in our particular builder's sales. The sales manager said they have not seen this much people building since pretty much the last boom. Something's definitely up. Just not sure if this surge is going to carry over much of next year.

Who are you building with?

[Xtrema]

Originally posted by bastardchild
I call BS. Realtors have been saying the same shit every year to keep their bills paid. There's only a handful of execs that can afford half million dollar average homes in this city, and their predicting its gonna go up? Trends mean nothing, there has to be a reason for prices to go up, timing doesn't do shit.

Any DINK in this city can afford $500K home.

Now $1M home may need execs.

[effingidiot]

Originally posted by 89coupe


Huh?

What year are you in?

I work with people who's bonuses are a half million dollars.

I think what he's trying to say is if you can afford something (house in this case), then you can buy it outright and if you have to finance your purchase through a bank you cannot really afford it :dunno:

[benyl]

Originally posted by Xtrema


Any DINK in this city can afford $500K home.

Now $1M home may need execs.

Nah, DIWK can afford $500K to $750K.

DINKs can go over $1M easy.

[ercchry]

Originally posted by effingidiot


I think what he's trying to say is if you can afford something (house in this case), then you can buy it outright and if you have to finance your purchase through a bank you cannot really afford it :dunno:

money is cheap, who the fuck would pay cash :nut:

[Ntense_SpecV]

Originally posted by benyl


Nah, DIWK can afford $500K to $750K.

DINKs can go over $1M easy.

This is very true for a professional working couple. It may not be the norm for other locations but here in Calgary it's pretty standard.

[XylathaneGTR]

Originally posted by effingidiot


I think what he's trying to say is if you can afford something (house in this case), then you can buy it outright and if you have to finance your purchase through a bank you cannot really afford it :dunno:

I think you're right. I recall he mentioned in the "Car to income ratio" thread that "if you don't pay cash...it's not yours."

I'd expect it's pretty unrealistic for the regular joe with average employment to save up 500k and throw that down into a house. Maybe if you're some kid htat hit a gold mine doing internet promotional stuff...okay, sure. I know I'm not going to live at home and save several years of income so that I can "pay cash and really own it like a man" for my first home when i'm 30.

[Tik-Tok]

Originally posted by Ntense_SpecV


This is very true for a professional working couple. It may not be the norm for other locations but here in Calgary it's pretty standard.

Median household income in Calgary is like $89g. Pretty sure you can't (or shouldn't anyways) afford a million dollar house on $89g a year.

Amazes me that the wealthier people are, the more they forget they are wealthy, and assume everyone else makes something close to them :nut:

[ercchry]

Originally posted by Tik-Tok


Median household income in Calgary is like $89g. Pretty sure you can't (or shouldn't anyways) afford a million dollar house on $89g a year.

Amazes me that the wealthier people are, the more they forget they are wealthy, and assume everyone else makes something close to them :nut:

just cause your day job only pays 5 figures doesnt mean your yearly income has to end there. if its that important to you (ie. value cash greater than bonding and family time) then you'll figure out how to make it happen. :dunno:

[Tik-Tok]

Originally posted by ercchry


just cause your day job only pays 5 figures doesnt mean your yearly income has to end there. if its that important to you (ie. value cash greater than bonding and family time) then you'll figure out how to make it happen. :dunno:

:confused: I never said anything about that, I was replying to some people's notion that dual income couples can easily afford million dollar homes in this city. :dunno:

Edit: Annual income is annual income, even if you have more than one job (unless it's something like this guy http://news.nationalpost.com/2012/11/07/ace-corporate-recruiter-by-day-mega-trafficker-by-night-man-gets-six-years-for-selling-marijuana/ )

[Ntense_SpecV]

Only one key word in my statement. "Professional" working couple. I don't and won't ever forget what it was like to be a starving student or junior employee before making decent money. If you and your partner both have your P.Eng you should be earning close to 140-175k per year or more. Plus look at all the small business owners and contractors here in this city; and I'm not talking about the construction contractors either. Heck working in a trade during the boom meant 100k year incomes.

That's more than enough to purchase a 450-500K house.

[ercchry]

Originally posted by Tik-Tok


:confused: I never said anything about that, I was replying to some people's notion that dual income couples can easily afford million dollar homes in this city. :dunno:

yeah, they can... if they want to. i'd say 10 years in the workforce and anyone could be there... if they make it happen

a lot of people have too, as there is community after community full of $1mm+ homes :dunno:

[ercchry]

Originally posted by Tik-Tok

Edit: Annual income is annual income, even if you have more than one job (unless it's something like this guy http://news.nationalpost.com/2012/11/07/ace-corporate-recruiter-by-day-mega-trafficker-by-night-man-gets-six-years-for-selling-marijuana/ )

or its going into an asset that hasnt paid out yet ;)

[Tik-Tok]

Originally posted by Ntense_SpecV
If you and your partner both have your P.Eng you should be earning close to 140-175k per year or more. Plus look at all the small business owners and contractors here in this city; and I'm not talking about the construction contractors either. Heck working in a trade during the boom meant 100k year incomes.

That's more than enough to purchase a 450-500K house.

Yet you were agreeing with this statement?


Originally posted by benyl


DINKs can go over $1M easy.

Not $450g-$500g houses.

[npham]

Originally posted by Tik-Tok
Amazes me that the wealthier people are, the more they forget they are wealthy, and assume everyone else makes something close to them :nut:

This is because they are usually working with other professionals, then make friends with their co-workers and contacts. Sure you will have friends outside of work and field, but when you are at work more than you have free time, it's pretty easy to fall into that lull that everyone makes 6 figures.

[Ntense_SpecV]

Originally posted by Tik-Tok


Yet you were agreeing with this statement?



Not $450g-$500g houses.


Sure. If you trade up 3-4 times with good incomes for 15-20 years and are good at not taking on additional debt... why couldn't you be at that position? I have a friend who is 30 who is keeping her first condo as an income property just so she can pay for her kids education. People can be wealthy if they're smart with their money.

[Tik-Tok]

Originally posted by Ntense_SpecV


People can be wealthy if they're smart with their money.

No doubt, but you're saying is NORMAL (standard) for dinks to be living in $1mill houses in Calgary. Yes we live in a wealthy city, but you seem to think it's outright filthy fucking rich.

I bet there's a mobile home for every million dollar house here.

[ercchry]

Originally posted by Tik-Tok


No doubt, but you're saying is NORMAL (standard) for dinks to be living in $1mill houses in Calgary. Yes we live in a wealthy city, but you seem to think it's outright filthy fucking rich.

I bet there's a mobile home for every million dollar house here.

but when you talk average, thats including retirees and families with children... so yeah, DINKS that have been in calgary and bought pre-boom (there is a lot of them) could easily be in a $1mm+ home today

[Ntense_SpecV]

Originally posted by Tik-Tok


No doubt, but you're saying is NORMAL (standard) for dinks to be living in $1mill houses in Calgary. Yes we live in a wealthy city, but you seem to think it's outright filthy fucking rich.

I bet there's a mobile home for every million dollar house here.

Still ignoring my word "professional". I'm not talking a husband/wife where he is a truck driver and she works at a bank. But there is nothing to say that if they have lived here their whole life that they couldn't be in a 450k house...especially if they were good at timing the housing cycles.

[holden]

Originally posted by Ntense_SpecV


Still ignoring my word "professional". I'm not talking a husband/wife where he is a truck driver and she works at a bank. But there is nothing to say that if they have lived here their whole life that they couldn't be in a 450k house...especially if they were good at timing the housing cycles.

If you're saying "professional", then I can believe it. Some people just look at their circle of acquaintances, who may be engineers, accountants, etc. and think that the whole city must be like that. There are a lot more people mopping up floors than there are P.Eng.'s.

[benyl]

Sorry, my view is skewed. I do have to catch that sometimes.

Professionals being the keyword.

Isn't everyone on Beyond a Professional Big Baller? Anyone mop floors here?

[dj_patm]

Beyond has some huge illusion that literally EVERYONE is an engineer.

I don't know a single person that is an engineer outside of the people I work with. Not everyone goes to University let alone makes it through engineering.

89 Grand is NOT the median salary in Calgary. Thats the median house hold income. No one is buying a millon dollar home on that type of money.

http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/famil107a-eng.htm

[Sugarphreak]

...

[ercchry]

Originally posted by dj_patm
Beyond has some huge illusion that literally EVERYONE is an engineer.

I don't know a single person that is an engineer outside of the people I work with. Not everyone goes to University let alone makes it through engineering.

89 Grand is NOT the median salary in Calgary. Thats the median house hold income. No one is buying a millon dollar home on that type of money.

http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/famil107a-eng.htm

it all depends, 10 years into the workforce living within a budget, where would you be today?

hell my parents have got their whole lives without carrying a mortgage over $300k and are in a house worth well over $1mm, $300k on $89k income is do-able :dunno:

[Tik-Tok]

Originally posted by ercchry


hell my parents have got their whole lives without carrying a mortgage over $300k and are in a house worth well over $1mm, $300k on $89k income is do-able :dunno:

No one is saying it isn't do-able, you guys are saying it's normal (even for a professional couple)

[ercchry]

Originally posted by Tik-Tok


No one is saying it isn't do-able, you guys are saying it's normal (even for a professional couple)

depends how normal is viewed. under 30? hell no, over? maybe... but it also depends on what people value? do you want that $1500/month payment forever? or you want it to be $0 and live a life that is full of more "experience" based wealth?

[Ntense_SpecV]

Well looking around and seeing a lot of the new communities where houses "start in the low 500's", and they are building hundreds of them...I have to say it certainly appears common. Whether they will be able to pay off all their debt is another thing.

Take a look at all the car's people drive to work in. I swear I see more roundel's on the back of people's trunks then anywhere else in the country except for maybe Vancouver.

[G]

Originally posted by dj_patm
Beyond has some huge illusion that literally EVERYONE is an engineer.

I don't know a single person that is an engineer outside of the people I work with. Not everyone goes to University let alone makes it through engineering.

89 Grand is NOT the median salary in Calgary. Thats the median house hold income. No one is buying a millon dollar home on that type of money.

http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/famil107a-eng.htm

EXACTLY! My BIL thinks everyone in Calgayr is rolling in doe. I told him to go take a drive around Forest Lawn/Dover it will be an eye opener. Recently I dropped off a bunch of stuff and the Women in Need Society and made sure my son knows how lucky we really are to not have to worry about rent or food.

Define afford a 500-600k house...Some guy on here has a 600k house but only 40k in equity....sounds like his wife is preggo and the family car needs repairs....is that affording?

[benyl]

Originally posted by G


EXACTLY! My BIL thinks everyone in Calgayr is rolling in doe. I told him to go take a drive around Forest Lawn/Dover it will be an eye opener. Recently I dropped off a bunch of stuff and the Women in Need Society and made sure my son knows how lucky we really are to not have to worry about rent or food.

Define afford a 500-600k house...Some guy on here has a 600k house but only 40k in equity....sounds like his wife is preggo and the family car needs repairs....is that affording?

Is he the one that lives next to me? Or is that you brother? Everyone is rolling in dough in Aspen (except us). LOL

If you can make the payments, you can afford it?

[bastardchild]

Originally posted by 89coupe


Huh?

What year are you in?

I work with people who's bonuses are a half million dollars.

So you work with people who are richer than you? Cool.

Yea there are tons of people who have 500k homes, it's because they bought them 10 years ago when they were 250k.

[ercchry]

Originally posted by bastardchild


So you work with people who are richer than you? Cool.

Yea there are tons of people who have 500k homes, it's because they bought them 10 years ago when they were 250k.

i bought one last week :dunno:

[Sugarphreak]

...

[G]

Originally posted by benyl


Is he the one that lives next to me? Or is that you brother? Everyone is rolling in dough in Aspen (except us). LOL

If you can make the payments, you can afford it?

Not my brother.

You definition of affordable isn't the same as mine. I don't think needing to sacrifice in other areas like vacation, RESP etc is affording. But that is what HELOCS are for...hahaha sure get the 700k house and vacation and bmw....fakers...whatever floats their boat I guess. Some well dressed mother had to go use 4 credit cards before she found one that had room to pay for her $50 in groceries. I almost offered to pay...walk outside and saw her drive away in a Rover.

[Disoblige]

Mine's 500k after taxes + options :dunno: :rofl:

[89coupe]

In my neighborhood it's tough to find a house for less the $600,000.00 and every couple I see in my neighborhood has young kids. :dunno:

[89coupe]

Originally posted by bastardchild


So you work with people who are richer than you? Cool.

Yea there are tons of people who have 500k homes, it's because they bought them 10 years ago when they were 250k.

I bought my house last year, it was a lot more then. $500k

In my neighborhood it's tough to find a house for less then $600,000.00 and every couple I see in my neighborhood has young kids. :dunno:

[bastardchild]

Originally posted by ercchry


i bought one last week :dunno:

Sweet man, point being? I know nothing about you.

[dj_patm]

Originally posted by Sugarphreak

And you seem to be under the illusion that evreybody blows their paychecks every two weeks on Dead Mouse heads and parties.

People actually accumulate equity, and for somebody who has been working for 10 or 15 years at a modest wage and hitting their mortgage hard could easily have 500K in equity (especially in Calgary where housing prices have built substantial equity into most peoples lives). The mortgage for most people getting into a 1M house is probbaly not much more than a first time home buyer.

Do you actually think the majority of people are lucky enough to be able to stick to a strict fiscal plan like that? No layoffs, no bad investments, no life events or dumb financial mistakes? Consistently moving up the pay scale?

You're talking about a dream scenerio. Maybe you're lucky enough to have lived in an enviroment where most of the people around you have been able to stick to that but I seriously doubt that it's a regular occurance.

Like someone said earlier, For every midlife DINK couple living in a million dollar home in this city you probably have two or more that are living in sub 400K housing.

[benyl]

Originally posted by G


Not my brother.

You definition of affordable isn't the same as mine. I don't think needing to sacrifice in other areas like vacation, RESP etc is affording. But that is what HELOCS are for...hahaha sure get the 700k house and vacation and bmw....fakers...whatever floats their boat I guess. Some well dressed mother had to go use 4 credit cards before she found one that had room to pay for her $50 in groceries. I almost offered to pay...walk outside and saw her drive away in a Rover.

That is definitely not my definition of affordable. I was joking around. I don't HELOC anything.

Personally, if my mortgage payment is more than 35% of my after tax income, I get concerned.

I pay cash for my cars. I hate owing the bank any money for anything. I paid my first house off in 4.5 years because I hated paying interest so much. That is my half asian side coming out.

If I could get a car I liked / wanted for 0%, then I would consider financing it. Free money! haha.

[G]

Originally posted by benyl


That is definitely not my definition of affordable. I was joking around. I don't HELOC anything.

Personally, if my mortgage payment is more than 35% of my after tax income, I get concerned.

I pay cash for my cars. I hate owing the bank any money for anything. I paid my first house off in 4.5 years because I hated paying interest so much. That is my half asian side coming out.

If I could get a car I liked / wanted for 0%, then I would consider financing it. Free money! haha.

We are very much alike then! :thumbsup: People are surprised when we pay in full nowadays...What you have 55k to pay for the car?

[ercchry]

Originally posted by bastardchild


Sweet man, point being? I know nothing about you.

point being that 4 people just said they spent at least that much recently... the difference in monthly payments of $250k vs $500k isnt much

[89coupe]

Originally posted by benyl


That is definitely not my definition of affordable. I was joking around. I don't HELOC anything.

Personally, if my mortgage payment is more than 35% of my after tax income, I get concerned.

I pay cash for my cars. I hate owing the bank any money for anything. I paid my first house off in 4.5 years because I hated paying interest so much. That is my half asian side coming out.

If I could get a car I liked / wanted for 0%, then I would consider financing it. Free money! haha.

You are the wealthiest 30 year old I know. A million+ home, a Mercedes, a BMW, a brand new Ford 4x4. Your backyard looks like it cost more then some people's homes. Haha. Trips to Hawaii every year, every electronic gadget known to man, please share your secret to success?

Haha

[Sugarphreak]

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[ercchry]

Originally posted by Sugarphreak


Lucky? Sticking to a "strict fiscal plan" has nothing to do with luck and everything to do with self control and disipline.

im actually fucking terrible at it, so i just make more money :rofl:

[dj_patm]

Originally posted by Sugarphreak


Lucky? Sticking to a "strict fiscal plan" has nothing to do with luck and everything to do with self control and disipline.

Umm... So what's your genius solution for people who get laid off? or their career hits a wall? or they need to bail a family member out? or make an investment that tanks?

Let me guess, that 89K DINK couple who have been paying off their house aggresively should also have had a couple years of salary saved up as well. I mean, spending any sort of coin on something as silly as "lesiure" is irresponsible and clearly evidence of a lack of self control.

I must have also forgot that your average person is highly educated in financial planning and has a great sense of foresight.

You have a very biased view on the average Calgarian.

[msommers]

500k homes are definitely not uncommon but higher than average which I believe is in the low 400k realm plus think about how many 1M+ homes there are; be interested to see the mean and median numbers to get a better idea of any skew. There are plenty of people who's homes have appreciated to 500k as well and given the short time to appreciate, isn't that common long term. A 500k starter home is not realistic, even in Calgary, for most folks and isn't the norm by a long shot.

And then there's the people in 500k homes that can't afford to be there.

If like to know how Benyl got to his position as well! Share secrets bro! Truthfully a lot of wealthy people are smart, connected, and hard working. Luck does play a big role, whether you want to believe it or not. A lot of us are lucky enough to live here for example. Plenty of people would die for a 100k/yr salaries across Canada that many here in AB shrug off as making ok coin.

[Sugarphreak]

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[bastardchild]

Originally posted by ercchry


point being that 4 people just said they spent at least that much recently... the difference in monthly payments of $250k vs $500k isnt much

Dude 250k vs 500k is double. Calgary has no surplus in jobs so why would there be a housing boom? You bought a house for 500k sweet, everyone that I know got help from there parents which isn't a reason for pricing to rise. If it did jump it will eventually crash again because its unrealistic to pay such an obscured amount for an average home.

[G]

Originally posted by bastardchild


Dude 250k vs 500k is double. Calgary has no surplus in jobs so why would there be a housing boom? You bought a house for 500k sweet, everyone that I know got help from there parents which isn't a reason for pricing to rise. If it did jump it will eventually crash again because its unrealistic to pay such an obscured amount for an average home.

But by the way he talks you would think his house was a palace until he posted for sale pictures...so everyone's expectations are a different.

[HiTempguy1]

Originally posted by benyl


Huh? I bought a $400K house making $70K / year.

Student loans? Car loan?

You must have been house poor then.

That is close to a $2000/month mortgage payment. Based on you taking home 60% of your gross (after tax, benefits, cpp, etc), your realistic take home pay per cheque is about $1500-$1600 (two cheques a month, sometimes 3). So, you earned $3k-ish net per month, and paid $2k per month mortgage? What about utilities? Taxes? Eating? Gas/car?

How did you save any money or do anything besides sit in your expensive house?


Originally posted by Disoblige

You could -if- you had a 20% down payment. That would help a lot.

True. But that is $30k of NET cash. Considering a $70k per year gross salary gets to be about $42k net, I can't possibly see saving that anytime soon. If I dropped everything, sat in my room and played video games, I could probably get that together in two years.


Originally posted by ercchry


he is just insane, huge racing expense :rofl:


Shhhhhh :cry:


Originally posted by Tik-Tok


Amazes me that the wealthier people are, the more they forget they are wealthy, and assume everyone else makes something close to them :nut:

This is exactly it. I should say that my $70k per year gross includes overtime. It's overtime that I am guaranteed to make, but OT nonetheless. I'm not looking for much either, and I'd rent a room out (I want a 2 bedroom, 2 bath w/insuite laundry, for $150k, which is available new in Edmonton).

I'm 24 years old. I drive beat to crap cars. Yes, I spend quite a bit of money racing, but I also spend $675/month renting. I am a person who SHOULD be able to get into a teenie rinky-dink condo. I probably will next year, but if condo prices rose 10-15%? Tough call.

[Hallowed_point]

Originally posted by bastardchild


Dude 250k vs 500k is double. Calgary has no surplus in jobs so why would there be a housing boom? You bought a house for 500k sweet, everyone that I know got help from there parents which isn't a reason for pricing to rise. If it did jump it will eventually crash again because its unrealistic to pay such an obscured amount for an average home.


Pretty tough to buy a first house in YYC without a"mommy money" down payment with how expensive rent is. :werd:

[dj_patm]

Originally posted by Sugarphreak

Also DINK implies that two people are earning income, which means an 89K dink is actually two people making 45K a year (or 21.60$ an hour on a typical 2080 hour base year). So unless you are talking about a couple young 20 year olds working at 7-11 or Zellers, your baseline is already flawed. Most DINKS are earning a household income of 100K to 200K easy here.

That is the median household income for Calgary according to Stats Can.

Most DINKs are not made up of two professionals either.

[dj_patm]

Originally posted by HiTempguy1


You must have been house poor then.

That is close to a $2000/month mortgage payment. Based on you taking home 60% of your gross (after tax, benefits, cpp, etc), your realistic take home pay per cheque is about $1500-$1600 (two cheques a month, sometimes 3). So, you earned $3k-ish net per month, and paid $2k per month mortgage? What about utilities? Taxes? Eating? Gas/car?


Something is wrong with your math. I make a lot less then 70 K but I make more net then that and I pay all the normal deductions.

I'm also pretty sure with my salary (again a lot less then 70 K) I will be able to afford 200K morgatge with ease. Maybe not "beyond levels of ease" but ease none the less.

[ercchry]

Originally posted by dj_patm


Umm... So what's your genius solution for people who get laid off? or their career hits a wall? or they need to bail a family member out? or make an investment that tanks?

Let me guess, that 89K DINK couple who have been paying off their house aggresively should also have had a couple years of salary saved up as well. I mean, spending any sort of coin on something as silly as "lesiure" is irresponsible and clearly evidence of a lack of self control.

I must have also forgot that your average person is highly educated in financial planning and has a great sense of foresight.

You have a very biased view on the average Calgarian.

if you get laid off you go get another job, depending on what you do you may even be profiting from a layoff.

i've always planned with a stagnant career in mind.

bailing out family members is over rated. let them learn from their own mistakes (even though Nick had got to where he is all while bailing out his mom)

in this case. your investment is the home. tossing anything under $100k into the markets isnt going to do much for you. unless you know wtf you are doing.

lets make a budget for the $89k dink couple:

since this is two saleries, we can say its close enough to $70k/yr NET...

so we have our young couple. they our a year into their careers and relationship. both living with their parents. they both bought brand new cars with $500/month payments for the next 5 years when they first started working.

they work all week, go for drinks on the weekend. buy lunch every day...

so total expenses every month?

$800-entertainment
$300-gas/food
$600-car/insurance
$100-savings for their annual all inclusive mexico trip

total: $1800

savings? $1100

so here they are ready to move in together, they have $26k saved up. they buy a one bedroom condo downtown for $200k

so $10k down, $5k in CMHC fees, $195k mortgage.

25yr, 3%... $920/month

tax-$100/month
maintenance fees-$200
utilities-$200

so $1420/month

oh no! now their month combined savings is only $780/month

but wait, they are young and dont mind a roommate in that 2 bedroom condo, since they have a prime location they can get $600/month out of a roommate...

yearly savings? $16,560

so 4 years later, the cars still run fine and are paid off. extra $1k/month savings.

so in 5 years after they bought? $94,800 in the bank. $166k left on mortgage. condo is now worth $225k total net worth? $154k our couple is now ready to move up... options?

$94k down while holding a rental property, or $154k (minus fees associated with selling)

what can they do... hrm...

[Sugarphreak]

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