Buying a house over 1 million?

[HiTempguy1]

If a couple dinks earn $200k a year together, is a million dollar mortgage really that far out there?

I mean, if a couple dinks who earn $120k together own a $500k+ home, I don't see the big issue that everyone has

[JamMan23]

Originally posted by you&me
The average house hold income in Calgary nearly hits the TDSR for a million dollar mortgage.

The average household income in Calgary is less than 100k, not even close to enough to service a million dollar mortgage.

[Sugarphreak]

...

[nzwasp]

My friend is willing to have a 800k mortgage on a million dollar house. Thats probably 4k a month atleast to mortgage payments. I would not like to have to pay that monthly if I lost my job/got sick etc.

[you&me]

Originally posted by JamMan23


The average household income in Calgary is less than 100k, not even close to enough to service a million dollar mortgage.

My bad. I had a few trains of thought going and got a little mixed up.

What I meant to say was that with 20% down, a million dollar house is close to the TDSR... But since that's not what we're talking about...

Anyways, my point stands that a million dollar mortgage isn't as far out of reach from even the average household in Calgary... Certainly closer here than anywhere else and far from some sort of extravagance based on affordability.

[msommers]

Originally posted by Sugarphreak
Keep in mind that people who can afford homes in this price range tend to be more savvy with money in the first place, so much so that I'd say most million dollar homes have a smaller mortgage than the 600K McMansions in the wannabe neighborhood down the road.

Lots of people with million+ homes also are in debt up to their eyeballs, people with really good jobs too. It's always amazing to hear these guys that seem to have everything but really the bank owns most of it

[ExtraSlow]

I know a guy with a $million house, and I'm 100% certain he owns 20% of it, and plans never to pay it off. He's living far beyond his means though, and i housing crashes, he'll be totally screwed.

[Xtrema]

Originally posted by you&me
Some of you guys are talking like a million dollar mortgage is some obscene luxury.

"If you need that, you can't afford the house"??? Pfft, give your head a shake.

A million dollars hardly buys you a "mansion". If we're talking about million dollar homes in the fucking Hamptons (no offence ), then the whole significance of a "million dollar home" is lost. Hell, most attached infills you see being built in Marda Loop, Altadore, Hillhurst, Parkdale are all well over a million dollars, let alone the stand alone homes in those areas and all of those being built in Mt Royal, Elbow Park, Briar Hill, Aspen, etc...

The average house hold income in Calgary nearly hits the TDSR for a million dollar mortgage. Now, I'm not saying million dollar mortgages should be handed out to marginal qualifiers like that, but there is absolutely no shortage of families (dual-income or single) that can comfortably service a mortgage of that size in Calgary and that's pretty clear by all the construction activity at that level.

As Todd said, the money's too cheap to say no to...

This thinking is why Albertans have 2x more debt than the rest of the nation.

I'm not worried about people who has a couple millions and want to borrow a couple more because loan is cheap. I'm worried about people who worried about the down payment they need to get into a $1M+ house and hopes they will get crazy equity appreciation in the years to come hopes to be ahead in the future.

I totally understand that $1M doesn't buy you much these days but it's still 2x the average price of housing in Calgary.

And betting on $1M+ inner city properties (Marda Loop, Cresent Height) seems to be a safer bet than the $1M+ properties in the burbs (Aspen, Hamptons).

[Pacman]

It's always interesting to read these types of threads.

Perhaps I'm a bit naive, but I just assume when I see young, hard working, professional couples in their late 20's to early 40's buying million dollar homes, driving newer BMW SUV's etc that they are earning well above average incomes and carefully saving up their money to make huge downpayents, max out their RRSP's and TFSA accounts etc and then have enough money left over to buy a nice car.

You guys make it seem like everyone is one paycheck away from losing their house and being forced to eat at the soup kitchen.

I suppose there really isn't an accurate way to tell, until a housing crash occurs. The ones with lots of equity in the house will continue living there and the ones who are upside will probably walk away.

[max_boost]

A couple professionals dinks can get a million dollar mortgage and yes that is almost full retard but on a 25 year amortization they will get approved lol

Look around 1mill homes in the inner city will get you a nice infill. Go further out and your house will be nicer. Altadore has a look cool modern luxury homes but 1.3 for a 25' lot. Fuck I went to high school across the street from there I have zero vision. Every .1 is $100k and we are talking like it's no big deal oh 1.1 vs 1.5 lol fuck Calgary so baller now

[taemo]

Originally posted by msommers


Lots of people with million+ homes also are in debt up to their eyeballs, people with really good jobs too. It's always amazing to hear these guys that seem to have everything but really the bank owns most of it

yeah no kidding, right now I owe the bank 22 years of mortgage and 2 years car finance, the sooner I get them paid off the sooner I'll feel accomplished and secure.
been tempted on getting a bigger house and trading for newer cars but what for?
I rather be debt free than owing the bank money for most of my life

[Sugarphreak]

...

[suntan]

According to my accountant, the high earners are the ones that are up to their eyeballs in debt, mostly mortgage.

[civic_rida]

I saw a duplex listed for 1.3 million and the realtor was feeding me the line well its inner city.
To think of spending that much money and still having someone on the other side of the wall.

[you&me]

Originally posted by Xtrema


This thinking is why Albertans have 2x more debt than the rest of the nation.

I'm not worried about people who has a couple millions and want to borrow a couple more because loan is cheap. I'm worried about people who worried about the down payment they need to get into a $1M+ house and hopes they will get crazy equity appreciation in the years to come hopes to be ahead in the future.

I totally understand that $1M doesn't buy you much these days but it's still 2x the average price of housing in Calgary.

And betting on $1M+ inner city properties (Marda Loop, Cresent Height) seems to be a safer bet than the $1M+ properties in the burbs (Aspen, Hamptons).

I'm less worried about someone with the means to come up with 20+% (even if it is a bit of a struggle) and the employment history to qualify for the million dollar + mortgage than I am about the people that have an equally hard time scrapping together the 20% for a more average home...

As Sugarphreak said, the people at that level tend to have a better handle on their finances and money in general. That doesn't mean some don't scrape by, or squeak into qualifying, but I would imagine the average $1MM+ home "owner" (/mortgager) is more secure that the rest of home "owners" (/mortgagers).

[ExtraSlow]

Yeah, I'm in a duplex infill, and while it's not bad, and certainly not cheap, I think I would have a hard time justifying seven figures for half the building. Airflow sucks, so AC is a neccessity, the yard is small, no room for a big garage.

[Sugarphreak]

...

[suntan]

Originally posted by Sugarphreak
I've never used an accountant, not for personal or business. Couldn't justify the expense when a software package will do it all for you if you put in an hour or two worth of data entry.

This is kind what I am talking about when I say some people are more savvy

I have a business, it's sorta handy to have an accountant do your books. So she also does my personal taxes and my wife's for about $110. How much is QuickTax? $50?

Do you really think it's $60/year that makes or breaks someone's finances?

I suppose I could do my postings myself, but QuickBooks costs money too.

[Sugarphreak]

...

[suntan]

Only personal is $110. Business is around $700. Sometimes more if I annoy her with a ton of questions

I also end up doing about $500-$1000 worth of IT services for her every year, so it's all good.

I should mention that wealthy people often have trusts, and yeah, you need an accountant for those.