Seriously... I was optimistic about it for the past few years, but after looking at the listings in my province... dude.. how the fuck am I going to ever afford one?
I'm not in a HCOL living area and a basic decent house that used to be $200k 5 years ago is going for 500k+ now.
Canada.
mattyanon Admin 4y ago
Move somewhere else.
Houseshare with someone (agree a fixed term!)
Rent supercheap and save for years
Earn more money.
r3z01v 4y ago
If you're in the Canada - there's no LCOL areas, just Investment in real estate areas and the wilderness.
Get a pickup truck. Buy a caravan. Buy some land outside of a small town. Build your own.
They way the law is there, you never actually own anything, just make your own and flip the queen right off.
whytehorse2021 4y ago
Real estate is a horrible investment right now. Much better investments out there that will return enough for you to cover rent and have extra to re-invest. I rent. Instead of making a down payment I do my own stock investing with the money. Some other chump pays all the house taxes, insurance, mortgage, maintenance, and has his money tied up while I can just up and leave to a cheaper place.
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Axlerod9999 4y ago
finger paint
Kingragnar1588 4y ago
Hmm idk man. We are i. A housing crisis all over the world. I live in Louisiana. The bigger the city the higher houses and rent are. I live in a rural area in a nice new double wide and im perfectly content. Id say get a good/career and get a mortgage. Usually as much or less than rent. Also, ex wife cant steal a house if ur renting. Food for thought. Live simply. Save money.
hornetsfalcons12 4y ago
I assume it’s similar in Canada, but in the USA, mortgage rates are skyrocketing. It recently broke 5% for an average 30 year fixed for the first time since, like, 2010. And Powell has suggested more rate increases to come. We could easily be at 8% APR by end of 2022, IMO.
What’s that mean? Well it’s going to take the air out of the housing market in a big way. For reference, in 2020 I had a little over $20k sitting in a HYSA. COVID hit, rates plummeted to next to nothing, and it was a waste to have all of that money sitting there. So what did I do? I bought a home in Florida. Used that and a few dollars more to get 15% down, financed the rest at 3.25% APR. Thanks to the federal reserve and banks basically giving money away, i made a big purchase on a home. Odds are, so did many people. This is a major cause for home prices spiraling out of control.
But as rates go up, the party is going to end. People aren’t going to afford as much home. For example, say you have $50,000 down and you can afford principal and interest on a loan at $1500 a month, tops. At 3% APR, you could take out $355k in a loan. At 6%, it’s down to around $250k. So 3 percentage points more, takes away over $100k of purchasing power. This is going to lower demand and eventually lower prices.
whytehorse2021 4y ago
You're spot on and Canada is even worse because of Chinese investors. A similar thing happened in the 1970s. People still bought houses at 9% interest because housing was rising at 12%. The combination of high inflation with weak economic growth, fuelled by repeated supply shocks, gave rise to the phenomenon of 'stagflation'. Sound familiar?
We are basically entering what Japan has been in for decades. Stagnant growth/wages plus inflation. 60% reduction in asset prices maybe.
hornetsfalcons12 4y ago
Yeah, wonderful. And it’s all self inflicted. Things should be easy mode in 2022, but people can’t resist printing off more money, restricting housing supply, and giving handouts to single mothers for their excellence in taking a zinc shot raw. Then everyone is shocked that everything is so expensive.
I’ve also read that Canadian debt slavery makes American debt slavery look like a man living off the land in the Alaskan wilderness. They’re paying like 15% of their disposable income to non-mortgage debt payments. Tough to get ahead when you’re living like that.
whytehorse2021 4y ago
What's even more funny is I see all these foreigners absorbing it. Filipino doctors/nurses, Mexican construction workers, Asian students, etc. Meanwhile the boomers are retiring and taking social security, medicaid.
Where I live they just raised property taxes to pay for schools(and rents, subsequently) and now they're raising sales tax.
hornetsfalcons12 4y ago
Imagine how much $ we’d save as a nation if people accepted the red pill on education and that you won’t turn a 90 IQ kid into an MIT student. Instead we keep giving those people more money.
whytehorse2021 4y ago
I've seen education work wonders... I don't think that's the problem. It's how it's implemented in a woke Karen gynocentric social order. Women default to communism. Everybody gets a participation trophy, competition is toxic masculinity, feels before reals, etc.
hornetsfalcons12 4y ago
Don’t get me wrong, education is great. Like you need to learn all of the things somewhere. Does Elon Musk dominate the 2010’s (and now probably 2020’s) in life if he were locked in a closet from 0-21 and then told to go? No way.
That being said, it’s not a miracle worker, either. You aren’t going to take a kid struggling to do basic, single digit number addition in the 2nd grade and turn them into a child prodigy with the “correct school system”. The faulty belief that you can encourages people to spend $750k on a 2 bedroom, 990 sq ft condo (I just looked up a listing in a “good” school district near me) in order to send their kids to “good” schools.
whytehorse2021 4y ago
At some point school is about connections to wealth. George Bush didn't go to Harvard+Yale because he was qualified. His grand-dad bought him a "gentleman's seat" by donating a new ward. In fact, as a student, Bush studied in the Yale library's Prescott Walker Bush Memorial Wing.
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