Could you afford to buy your own home now?

[ronandannette]

Is that an Alberta thing? Or a condo thing? We built a home in early 2000s and it has steadily increased in price. At no time has it been worth less than what we paid for it.

Let's just call it a Calgary condo thing. Housing price cycles go both very high and very low, on about an 8-year regular cycle. Demand for multi-family is never very robust, especially high-end multi. We bought at the tippty-top of that particular cycle (exactly 8 years ago now).

 

[barkley]

Housing costs are the #1 inflationary issue in America. Those who already own don't have to deal with it directly

as a homeowner i deal with it directly via my property taxes and homeowner's insurance. when housing values skyrocketed so did my valuation by the county for property tax purposes and they increased accordingly. when values skyrocketed my homeowner's insurance company increased my premiums. i pay these directly out of my own pocket so there is a direct impact on me.

 

[Cheburashka]

as a homeowner i deal with it directly via my property taxes and homeowner's insurance. when housing values skyrocketed so did my valuation by the county for property tax purposes and they increased accordingly. when values skyrocketed my homeowner's insurance company increased my premiums. i pay these directly out of my own pocket so there is a direct impact on me.

Yes, that definitely has an effect, as well.

 

[Pea-n-Me]

as a homeowner i deal with it directly via my property taxes and homeowner's insurance. when housing values skyrocketed so did my valuation by the county for property tax purposes and they increased accordingly. when values skyrocketed my homeowner's insurance company increased my premiums. i pay these directly out of my own pocket so there is a direct impact on me.

It’s also hard to move anywhere else because everything else (at least in our area, and it sounds like in many others) has gone up, as well. So you’re kind of stuck.

 

[barkley]

It’s also hard to move anywhere else because everything else (at least in our area, and it sounds like in many others) has gone up, as well. So you’re kind of stuck.

yup. i know several folks who planned on selling and moving to lower cost of living areas to downsize upon retirement but with the current pricing it's just not an option.

 

[CdnCarrie]

Let's just call it a Calgary condo thing. Housing price cycles go both very high and very low, on about an 8-year regular cycle. Demand for multi-family is never very robust, especially high-end multi. We bought at the tippty-top of that particular cycle (exactly 8 years ago now).

Interesting.
I know there are much more multi family options being built recently here than previous decades.

 

[MillauFr]

as a homeowner i deal with it directly via my property taxes and homeowner's insurance. when housing values skyrocketed so did my valuation by the county for property tax purposes and they increased accordingly. when values skyrocketed my homeowner's insurance company increased my premiums. i pay these directly out of my own pocket so there is a direct impact on me.

I thought you lived in Washington State? Our property taxes can't increase more than 1% per year. When your valuation goes up the levy rate is adjusted downward. At least that is how it works in Seattle. The only increase above 1% is due to voter approved levies.

 

[Kameron Milne]

Unfortunately not yet. However, I'd like to. I've already addressed several banks to take a loan but the interests are too high. The smallest ones were in lightstream but after having read the reviews I'm scared that could be scam.

 

[Robbie Cottam]

At these interest rates NO
In 2020 yes

 

[White Cat]

USA, yes. Canada. It would be tough.

 

[White Cat]

At these interest rates NO
In 2020 yes

I’m thinking the OP is referring to buying. Not financing.

 

[Robbie Cottam]

I’m thinking the OP is referring to buying. Not financing.

Not sure what they do in Canada but I don’t know many people that can stroke a check to buy a house in the USA.

Actually that’s not completely true….

But the average person I know isn’t stroking a 700k dollar check for a house….. most normal people need to get a mortgage….

 

[LuvOrlando]

Yes

 

[White Cat]

Not sure what they do in Canada but I don’t know many people that can stroke a check to buy a house in the USA.

Actually that’s not completely true….

But the average person I know isn’t stroking a 700k dollar check for a house….. most normal people need to get a mortgage….

Most people I know in the USA paid cash. I’m not sure the percentage in the USA of those who pay out right. But it’s higher than you might think. A fair number of people near me sold houses in high tax states and have enough to buy.

 

[Robbie Cottam]

Most people I know in the USA paid cash. I’m not sure the percentage in the USA of those who pay out right. But it’s higher than you might think. A fair number of people near me sold houses in high tax states and have enough to buy.

27.5 to 31 percent of ALL home purchases in the US are cash deals...... the upward pressure is due to inflation and climbing interests rates.

However, investor and affluent buyers purchasing second home make a a large part of that number......

So the Average person in the US is going to a bank and taking out a mortgage

 

[mousefan73]

Honestly some bubbles need to bubble burst. Housing “value” has definitely outpaced income.

Simply based on income it will be very challenging for young couples to buy into certain markets. On the other hand I personally know so many who are on the verge of inheriting a very significant amount of assets. I think there’s a generation coming up about to benefit from their grandparents and parents being savers.

 

[Robbie Cottam]

Honestly some bubbles need to bubble burst. Housing “value” has definitely outpaced income.

Simply based on income it will be very challenging for young couples to buy into certain markets. On the other hand I personally know so many who are on the verge of inheriting a very significant amount of assets. I think there’s a generation coming up about to benefit from their grandparents and parents being savers.

In the last 21 months EVERYTHING HAS OUTPACED INCOME....

 

[fla4fun]

No. Until I am working again I couldn’t finance, and I don’t have enough savings to buy it outright. At least it is paid for, which has been a big help.