Real-estate market 'almost at a crisis situation'

[finsfurfeathers]

Thanks

My concern is that the trend was set long ago and more and more Canadians are being pushed out of the market. Why do we take the data if we aren't going to use it ?. Do we let the trend continue? If so more and more will never be able to make it. The rcmp published a report last year that said most Canadians under 35 may never be able to afford a home.
I've said it before how does the average person keep up with wall street. Blackstone just made another 10 billion dollar deal for rentals last week. Canadians are being left behind from corporate rentals. Our government just announced yesterday that they wont be able to buy existing homes. But they already own alot of them. Look at London, or peterborough over the last few years. They own large swaths of rental properties. But that new law does nothing when they started building completely new subdivisions for rentals.

Also if we do nothing it's sets the course of their predictions. Why do we need to keep giving them what they want?

Also it's better for our economy the mental health, suicide and crime rates. All are effected when the standard of living falls. If many think they already lost then what are they working for ? It plays alot on the mind and soul.

If we ignore it the trends show they will own nothing soon . In 10 years those people will be 45 and most never will be able to afford a home. Same goes with the brics if we ignore it will become a reality. The new grain deal will effect our markets. Their plan is to keep the usa inflation high. It's working .



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I own a home and have a rental condo in Toronto. Quite honestly what I'm charging for rent almost I couldn't afford. The market is there. I'm sure if my tenants wanted they could purchase a similar condo and be their own master. How we did it. Skimped and saved for a decent downpayment on the condo. Lived on the wife's income working at an M&M shop while essencially eve penny I made went into the mortage. Had it paid for in 5 years with it as collateral and rent from the unit bought a house to raise the family in. So that's why I believe if I can do it anyone can do it if the make the right choices.

[Fisherman]

I own a home and have a rental condo in Toronto. Quite honestly what I'm charging for rent almost I couldn't afford. The market is there. I'm sure if my tenants wanted they could purchase a similar condo and be their own master. How we did it. Skimped and saved for a decent downpayment on the condo. Lived on the wife's income working at an M&M shop while essencially eve penny I made went into the mortage. Had it paid for in 5 years with it as collateral and rent from the unit bought a house to raise the family in. So that's why I believe if I can do it anyone can do it if the make the right choices.

There's the correct answer.

[fishfood]

I own a home and have a rental condo in Toronto. Quite honestly what I'm charging for rent almost I couldn't afford. The market is there. I'm sure if my tenants wanted they could purchase a similar condo and be their own master. How we did it. Skimped and saved for a decent downpayment on the condo. Lived on the wife's income working at an M&M shop while essencially eve penny I made went into the mortage. Had it paid for in 5 years with it as collateral and rent from the unit bought a house to raise the family in. So that's why I believe if I can do it anyone can do it if the make the right choices.

That's a really big achievement that most can never do in this time era . When did you purchase? In the 90s a house was 4.5 the average salary today its 13 times. Take off taxes and the average person will put all of his pay towards the mortgage for up it to 16 years or better. Even many on the sunshine list can't pay off an average price in Ontario In 5 years now. 7 minimum with all their pay after taxes.

Rents are crazy high know a few people renting a house and it's eating most of their income not much room to save.

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[Fenelon]

That's a really big achievement that most can never do in this time era . When did you purchase? In the 90s a house was 4.5 the average salary today its 13 times. Take off taxes and the average person will put all of his pay towards the mortgage for up it to 16 years or better. Even many on the sunshine list can't pay off an average price in Ontario In 5 years now. 7 minimum with all their pay after taxes.

Rents are crazy high know a few people renting a house and it's eating most of their income not much room to save.

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Not sure that I agree with the 4.5 vs 13 X scenario. I live rural Kawarthas and bought my first home in 1991 when I was making 40K per year and was 26yrs old. A really nice house, or even a small farm could be had for about $275-300K. I bought a power of sale 8 acre parcel and got the cheapest bungalow I could get built new on the property. Total cost was $115,000. I had saved about 35K of my own money. Unlike my friends who had zero savings, I didn't own a new truck, ATV, boat, skidoo, covered skidoo trailer, Seadoo, etc . I didn't eat out and I didn't go to the tropics in the winter. I made sure I had zero debt, other than my mortgage which was 15%! I've never carried a credit card balance in my life. If you don't have the money saved - you don't buy it! I went without a lot of things. I also trapped during this time and every penny I made went towards the mortgage principle. When I did buy a new truck or car, it was the base economy model. My wife and I had the mortgage paid by the time we were 33, even with the high insurance rates.

Today, the mortgage rates are almost 1/3 of what I paid! My 40K job now pays 89K. You can still get a good starter home for around $550k where I live, so the ratio has not changed in 35 years. WTF are young people doing with their money now? The change is the work ethic and values of the new generations. They feel entitled and aren't prepared to be realistic and do what is needed to own a home. How many 25 year olds have actually scrimped on their lifestyle to put money away in savings? They can thank their helicoptering parents for the defective upbringing that didn't teach them to work hard to get yourself ahead. Starting at 11 and 12 I always had work on farms- haying, ploughing, milking, harvesting. I never had an allowance and I had afterschool jobs from the time I was 13. If I wanted to drive at 16 then I paid the whole shot. My money went into the bank and helped pay for my clothes and education. I tried a couple of years ago to find two teenage 14-16 year old boys who would help hay, pick rocks and cut cedar posts in the bush. A three month job, 40 hrs per week. I was going to pay them $20/hour and feed them. I could not entice a single kid to take the job! The old saying "that kid was as useless as teats on a boar-pig" came to mind. Now you have a generation of kids who are given money, never have to work to pay for anything, mommy and daddy pay their phone bill, gas and insurance to drive the car, and pay for their education. The typical 25 to 30 year old I see now has a leased or purchased BRAND NEW $90,000 truck that will take double that amount of his income to pay out over an 8 year term. What ever happened to the old POS beater that allowed you to save some money. Then the idiot will spend another $8,000 on oversized tires and rims so that everyone thinks his truck is cool. Then they buy a $19,000 skidoo on credit, $10,000 covered trailer on credit, $3000 of colour-matching jackets and helmets on credit. In the summer they've switched the skidoo for the $16,000 atv on credit, or maybe even the $35,000 UTV on credit. Another 3K to insure it. Might as well throw in a few other toys like a seadoo and maybe a boat. They buy stuff on lines of credit and use a credit card to buy things they cannot afford. The same dude hits the bars twice a week and eats out at least six times per month, and lives on expensive take-out or door dash crap. The end of all of this makes my heart bleed piss for the situation they find themselves in. There's no sympathy coming from me.

[finsfurfeathers]

Not sure that I agree with the 4.5 vs 13 X scenario. I live rural Kawarthas and bought my first home in 1991 when I was making 40K per year and was 26yrs old. A really nice house, or even a small farm could be had for about $275-300K. I bought a power of sale 8 acre parcel and got the cheapest bungalow I could get built new on the property. Total cost was $115,000. I had saved about 35K of my own money. Unlike my friends who had zero savings, I didn't own a new truck, ATV, boat, skidoo, covered skidoo trailer, Seadoo, etc . I didn't eat out and I didn't go to the tropics in the winter. I made sure I had zero debt, other than my mortgage which was 15%! I've never carried a credit card balance in my life. If you don't have the money saved - you don't buy it! I went without a lot of things. I also trapped during this time and every penny I made went towards the mortgage principle. When I did buy a new truck or car, it was the base economy model. My wife and I had the mortgage paid by the time we were 33, even with the high insurance rates.

Today, the mortgage rates are almost 1/3 of what I paid! My 40K job now pays 89K. You can still get a good starter home for around $550k where I live, so the ratio has not changed in 35 years. WTF are young people doing with their money now? The change is the work ethic and values of the new generations. They feel entitled and aren't prepared to be realistic and do what is needed to own a home. How many 25 year olds have actually scrimped on their lifestyle to put money away in savings? They can thank their helicoptering parents for the defective upbringing that didn't teach them to work hard to get yourself ahead. Starting at 11 and 12 I always had work on farms- haying, ploughing, milking, harvesting. I never had an allowance and I had afterschool jobs from the time I was 13. If I wanted to drive at 16 then I paid the whole shot. My money went into the bank and helped pay for my clothes and education. I tried a couple of years ago to find two teenage 14-16 year old boys who would help hay, pick rocks and cut cedar posts in the bush. A three month job, 40 hrs per week. I was going to pay them $20/hour and feed them. I could not entice a single kid to take the job! The old saying "that kid was as useless as teats on a boar-pig" came to mind. Now you have a generation of kids who are given money, never have to work to pay for anything, mommy and daddy pay their phone bill, gas and insurance to drive the car, and pay for their education. The typical 25 to 30 year old I see now has a leased or purchased BRAND NEW $90,000 truck that will take double that amount of his income to pay out over an 8 year term. What ever happened to the old POS beater that allowed you to save some money. Then the idiot will spend another $8,000 on oversized tires and rims so that everyone thinks his truck is cool. Then they buy a $19,000 skidoo on credit, $10,000 covered trailer on credit, $3000 of colour-matching jackets and helmets on credit. In the summer they've switched the skidoo for the $16,000 atv on credit, or maybe even the $35,000 UTV on credit. Another 3K to insure it. Might as well throw in a few other toys like a seadoo and maybe a boat. They buy stuff on lines of credit and use a credit card to buy things they cannot afford. The same dude hits the bars twice a week and eats out at least six times per month, and lives on expensive take-out or door dash crap. The end of all of this makes my heart bleed piss for the situation they find themselves in. There's no sympathy coming from me.

Anyone who got ahead has your same story and sentiments. Stop blaming the gov'ment and big corporate and take responsibility for your own situation. Plenty of first generation success stories who came over with nothing and min education to boot. Few second gen success stories after full education and a comfy upbringing. Even fewer third gen stories of success.

[fishfood]

Not sure that I agree with the 4.5 vs 13 X scenario. I live rural Kawarthas and bought my first home in 1991 when I was making 40K per year and was 26yrs old. A really nice house, or even a small farm could be had for about $275-300K. I bought a power of sale 8 acre parcel and got the cheapest bungalow I could get built new on the property. Total cost was $115,000. I had saved about 35K of my own money. Unlike my friends who had zero savings, I didn't own a new truck, ATV, boat, skidoo, covered skidoo trailer, Seadoo, etc . I didn't eat out and I didn't go to the tropics in the winter. I made sure I had zero debt, other than my mortgage which was 15%! I've never carried a credit card balance in my life. If you don't have the money saved - you don't buy it! I went without a lot of things. I also trapped during this time and every penny I made went towards the mortgage principle. When I did buy a new truck or car, it was the base economy model. My wife and I had the mortgage paid by the time we were 33, even with the high insurance rates.

Today, the mortgage rates are almost 1/3 of what I paid! My 40K job now pays 89K. You can still get a good starter home for around $550k where I live, so the ratio has not changed in 35 years. WTF are young people doing with their money now? The change is the work ethic and values of the new generations. They feel entitled and aren't prepared to be realistic and do what is needed to own a home. How many 25 year olds have actually scrimped on their lifestyle to put money away in savings? They can thank their helicoptering parents for the defective upbringing that didn't teach them to work hard to get yourself ahead. Starting at 11 and 12 I always had work on farms- haying, ploughing, milking, harvesting. I never had an allowance and I had afterschool jobs from the time I was 13. If I wanted to drive at 16 then I paid the whole shot. My money went into the bank and helped pay for my clothes and education. I tried a couple of years ago to find two teenage 14-16 year old boys who would help hay, pick rocks and cut cedar posts in the bush. A three month job, 40 hrs per week. I was going to pay them $20/hour and feed them. I could not entice a single kid to take the job! The old saying "that kid was as useless as teats on a boar-pig" came to mind. Now you have a generation of kids who are given money, never have to work to pay for anything, mommy and daddy pay their phone bill, gas and insurance to drive the car, and pay for their education. The typical 25 to 30 year old I see now has a leased or purchased BRAND NEW $90,000 truck that will take double that amount of his income to pay out over an 8 year term. What ever happened to the old POS beater that allowed you to save some money. Then the idiot will spend another $8,000 on oversized tires and rims so that everyone thinks his truck is cool. Then they buy a $19,000 skidoo on credit, $10,000 covered trailer on credit, $3000 of colour-matching jackets and helmets on credit. In the summer they've switched the skidoo for the $16,000 atv on credit, or maybe even the $35,000 UTV on credit. Another 3K to insure it. Might as well throw in a few other toys like a seadoo and maybe a boat. They buy stuff on lines of credit and use a credit card to buy things they cannot afford. The same dude hits the bars twice a week and eats out at least six times per month, and lives on expensive take-out or door dash crap. The end of all of this makes my heart bleed piss for the situation they find themselves in. There's no sympathy coming from me.

I agree some do live beyond their means but not all. My kids friends are into the big trucks and shows. They are mostly older and beat up with them doing the work themselves. Some have new trucks and some can afford them.

So if your salary was 40k and your house was 115k that's 2.8 times your annual salary. For 89k that would be a higher end pay for the kawarthas . Average salary is 67k average sold price in April 2024 was 717k making it10x the average salary.

In the gta and Toronto it's 13x the average salary.

Some say it should be about 30 to 35% of your income towards your housing. People are putting upwards to 85% of their income to their mortgages. 107% in Vancouver.



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[gbk]

I agree some do live beyond their means but not all. My kids friends are into the big trucks and shows. They are mostly older and beat up with them doing the work themselves. Some have new trucks and some can afford them.

So if your salary was 40k and your house was 115k that's 2.8 times your annual salary. For 89k that would be a higher end pay for the kawarthas . Average salary is 67k average sold price in April 2024 was 717k making it10x the average salary.

In the gta and Toronto it's 13x the average salary.

Some say it should be about 30 to 35% of your income towards your housing. People are putting upwards to 85% of their income to their mortgages. 107% in Vancouver.



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What would you recommend to solve this issue?

[glen]

Wage in 2000 was $90,000. House cost $200,000.
Wage in 2024 is $120,000. House cost
$1,000,000.
I’m selling. Anyone want to buy.

[Fenelon]

[QUOTE=fishfood;1220496]I agree some do live beyond their means but not all. My kids friends are into the big trucks and shows. They are mostly older and beat up with them doing the work themselves. Some have new trucks and some can afford them.

So if your salary was 40k and your house was 115k that's 2.8 times your annual salary. For 89k that would be a higher end pay for the kawarthas . Average salary is 67k average sold price in April 2024 was 717k making it10x the average salary.

In the gta and Toronto it's 13x the average salary.

Some say it should be about 30 to 35% of your income towards your housing. People are putting upwards to 85% of their income to their mortgages. 107% in Vancouver.

Again, the entitlement factor. I sure couldn't afford an "average" home when I was starting out. I bought the $115 K home instead of the $300k one. The guy making $89K needs to give his head a shake and realize he's living far above his means if he thinks he's in a position to finance an "average" $717k home. Suck it up! You buy the $550 home and you fix it up/do the upgrades as your finances allow. If you don't know how to do this then you take the incentive and you learn how to do it. You also adjust your life when it comes to important decisions such when/if you're going to have children. Instead of having a kid at 26 and losing your spouse's second income, wait another six years and pound that money away to get the most important asset you will need in life.

[Fisherman]

Quit buying 3500 to 4K square/Ft houses with 4-5 bathrooms and 3 stall garages. It's not needed. Quit listening to real estate agents that are trying to flog these monsters, they're only in it for the money. Quit buying ridiculous priced electronics, probably 95% of people don't need an Apple iphone 15 or whatever the next number is, matter of fact most people don't need a cell phone period. They just want to look cool with a phone in one hand and a Starbucks in the other. Want to be stupid, go ahead, it's your debt.