25 replies to this topic

[American Woman]

He he...let them buy such houses unseen.

Agreed...I was able to purchase my first home with a VA loan ($1 down payment) and 13% interest rate on the mortgage!

Still, home ownership is not for everybody, and renting will always be an important part of the housing mix.

I do realize that home ownership isn't for everyone, and I can understand why. My responses were more or less in response to the idea that homes are dirt cheap in the U.S. because of the housing crisis as well as the idea that young people these days don't have the same opportunity to own that people did in the past. I'm in my third house now, so I've bought through the years, and really don't see how much has ultimately changed.

[Wilber]

I have an old car with 20% more square footage than that.

[bloodyminded]

I have an old car with 20% more square footage than that.

I used to own a Ford LTD. Remember them? We used to pitch a tent inside, light a campfire, and invite the whole neighbourhood.

[Bonam]

I do realize that home ownership isn't for everyone, and I can understand why. My responses were more or less in response to the idea that homes are dirt cheap in the U.S. because of the housing crisis as well as the idea that young people these days don't have the same opportunity to own that people did in the past.

This perception depends a lot on location more than anything else. It's certainly true in Vancouver, where an average detached home in a decent neighborhood in the city costs millions.

[American Woman]

This perception depends a lot on location more than anything else. It's certainly true in Vancouver, where an average detached home in a decent neighborhood in the city costs millions.

Not necessarily more than anything else when comparing markets and ability to own through the years. Certainly the price of homes is dependent on location, there's no denying that, but the rise in prices has remained consistent with the cost of other things, which was my point. I should have added that I have friends and family living throughout the States, some in cities, some in small towns, and wasn't just speaking from my own situation.

[kimmy]

Certainly the price of homes is dependent on location, there's no denying that, but the rise in prices has remained consistent with the cost of other things, which was my point.

That's just not true in Canada. The cost of homes has risen dramatically relative to income.

That's easily verified if you spend a few minutes with Google. You'll find plenty of graphs like the one I linked to earlier in the thread, or this one:
http://vreaa.wordpress.com/2010/03/21/income-vs-house-price-changes-1996-2009/



-k

[bush_cheney2004]

....I do realize that home ownership isn't for everyone, and I can understand why. My responses were more or less in response to the idea that homes are dirt cheap in the U.S. because of the housing crisis as well as the idea that young people these days don't have the same opportunity to own that people did in the past. I'm in my third house now, so I've bought through the years, and really don't see how much has ultimately changed.

Right....we understand that intrinsically, but anyone watching through media reports (in, say... Canada) might be mislead to believe that anything has fundamentally changed when it comes to the ups and downs of real estate in the US. The false value and inflated prices were abnormal, not the underlying mechanisms for qualified buyers and solid mortgage products, with rates still at historical lows.

[Bonam]

Right....we understand that intrinsically, but anyone watching through media reports (in, say... Canada) might be mislead to believe that anything has fundamentally changed when it comes to the ups and downs of real estate in the US. The false value and inflated prices were abnormal, not the underlying mechanisms for qualified buyers and solid mortgage products, with rates still at historical lows.

The US housing market had a much needed correction. Canada's still hasn't, or at least not the market that I've seen with my own eyes over the past decade: Vancouver. There, the bubble remains completely unperturbed and rapidly inflating. My parents undistinguished townhouse in east Vancouver has risen in value almost four times since they bought it ~15 years ago, to almost a million dollars today. That's despite it being on leasehold land with the clock ticking until the government gets to take all the land and everything on it back. You can buy a comparable townhouse on freehold land in Seattle for about 1/3 of the price.

All of my friends from university are now working professionals, some making six figures, some married to partners that are also professionals. Not a single one of them has seriously contemplated buying a house in Vancouver, it is completely out of reach.

[GostHacked]

The US housing market had a much needed correction. Canada's still hasn't, or at least not the market that I've seen with my own eyes over the past decade: Vancouver. There, the bubble remains completely unperturbed and rapidly inflating. My parents undistinguished townhouse in east Vancouver has risen in value almost four times since they bought it ~15 years ago, to almost a million dollars today. That's despite it being on leasehold land with the clock ticking until the government gets to take all the land and everything on it back. You can buy a comparable townhouse on freehold land in Seattle for about 1/3 of the price.

All of my friends from university are now working professionals, some making six figures, some married to partners that are also professionals. Not a single one of them has seriously contemplated buying a house in Vancouver, it is completely out of reach.

I had the chance to move to Vancouver for work (same job same company other end of the country) and after I factored in the cost of living, healthcare, food ect .. the decision was easily made. I said no. Rent was high as well, and with some quick searching for homes on the market, that dashed my hopes of ever owning a house there. I really like Vancouver, but damn it's very expensive. My salary was not going to increase enough to say those costs would be worth it.

Now I am looking at a place just outside of Ottawa. I'd love to own a small house on a good chunck of land, a few acres n such. It's not cheap, either way, it's just what your priorities are when you spend money on a house.

[The_Squid]

My bathroom is 60 sq ft. She could double her living space if she would forgo showers and poo through a hole in the floor... Imagine the efficient use of space!! Does she have any friends? My guess is that she spends a lot of time at THEIR place.

She has no kitchen. So she nukes cans of Campbells soup and eats a lot of cereal?

It isn't for me. I think having some space is a part of a healthy lifestyle.... Cramming yourself into a shoe-box sized apartment in a city isn't healthy.

[Uncle 3 dogs]

If that's "The Future" I'm glad I'm not likely to live long enough to live in it.