Vancouver Ranked 3rd in Livable Cities Study
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08-22-2012, 07:35 PM
Join Date: Aug 2006
Originally Posted by
I guess I look at these numbers and think the people at the IMF spent too much time partaking in the herb.
I own a house just off the Drive. (Lakewood and 5th) When I bought the house, it came with a suite that was already rented for $1200 a month. My neighbour rents out a suite for a little less than that, but it is smaller. If I was to rent out the rest of the house to a family, I'd get between 2500-2800 and get the choice of my tenant. My neighbour would likely get more.
My mortgage is about 800K, payments with taxes are about 3800, and the current market value is likely close to $1M. Of course there may be a correction, then there'll be another upward trend. Then a stall. Then a drop. Then a continuing growth. Then a crisis. That's life. Some people will spend most of their lives waiting to get started, some won't.
I guess I am bored of the constant barrage of first year ECON students (and their equally as inept Profs) and journalists opining on the topic. I think it is now year 10 of the great bubble. OMG, what if rates go up! What if I get cancer. What if I....
It's old, but sooner or later it'll be right for a while. Then wrong. Then right again.
If you really didn't care you wouldn't be so defensive about the subject to resort to denigrating economics.
$800k at 3800/m is a 3.2% interest rate (25y amt). Care to shed any light on your debt service percentage of income and what industry you work in? Curious, because home maintenance is about another ~$500 a month especially if your home is $800k (~$3200 p taxes in assessment.) With all that into account, at $4.5k a month you would need to earn $54k net which looks like $90k+ gross and puts you into the upper percentiles of income earners in Vancouver.
In which case, yes, property values and affordability don't matter to you because you earn enough money that cost of living is an afterthought. And, yes, real estate talk would "bore" you. Which is an odd thing to say as other high net worth people still care about what the market is like and how their properties (which are assets nonetheless) are doing.
However if you do fall within the averages of household income being $70k. You're in a very tight spot as is, and just a one point bump in interest rates is going to put you in a situation where that mortgage becomes very hard to service.
Great choice to live by the drive though. I love the area. Although it is strange because I know nobody who earns six figures gross who lives in East Vancouver so close to Commercial. Those people I do know who earn that much live downtown or in West Van or in the Oakridge / Shaughnessy / Kits areas ...
Last edited by sticknrink: 08-22-2012 at
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