Was Anyone Else As Stupid As Us (and probably 1/2 of my neighbors)

[DCLMP]

You literally are saying that by saying that they can’t complain because they choose to live somewhere.

As if abandoning your entire life, family, and friends should be the reasonable alternative to simply complaining about ****ty socioeconomics.

You can't be serious?

 

[StacyStrong]

You can't be serious?

I’m absolutely am!

 

[bakerworld]

IMO, if your payment is fixed for 5 years then wait until 2024 to start looking for a refi. Just my 2 cents.

 

[Sheree]

20% down is required for 30 year mortgages in the US also. You CAN put less than that down, but that subjects you to Private Mortgage Insurance (PMI) which costs several hundred dollars per month. You have to pay PMI until you have at least 20% equity in your home.

There are programs where you can put as little as 3% down, but they are all income restricted.

There is a VA loan program that allows 0% down, but there is a cap on the amount of the loan. If the loan is over the loan limit, the buyer has to put down 25% of the difference between the loan limit and the loan amount. The effective loan limit is around $750k, and up to about $1M in high COL counties.

pmi may or not be several hundred dollars per month depending on loan amount and down payment (5, 10, 15)

fha is 3% down and is not income restricted. there is a lending cap
VA is 0 down and is not income restricted but there is also a lending cap

i was in the mortgage busines for 25 years, and very few borrowers actually had 20% down

 

[pigletto]

Fun fact, the Rachel Cruze show ( Dave Ramseys daughter) was on the other day and she casually mentioned to a caller that she realized things were changing and sometimes a 5% or 10 % downpayment would have to do to get into the housing market. This a very notable departure from all they have said for the last 30 years on the Ramsey network. They don’t budge on their rules and I could barely believe what I was hearing.

 

[tvguy]

I think that’s a massive oversimplification of our current housing markets in Canada. Yes SOME people are buying houses in Canada but to say we are in an affordability crisis doesn’t even touch what’s happening.
Google if you’re interested in understanding what’s happening here. Our prices are outrageous.

One example . I bought in 2019 for 335,000. The house had been purchased by the previous owners in 2014 for 139,900. I could sell today for $550,000.
My house is 100 years old, and 1200 square feet . Nothing fancy in the least. I also live in a town of less than 20,000 people.

I want you to look at that jump in 10 years. And I consider myself LUCKY because I couldn’t have bought into the market even a year later. So alllll those people who bought in during the record high prices of the pandemic are set to renew at 6 percent or more. If they want a new mortgage with another lender they have to requalify with a stress test of 8% .

No really any different than anywhere else. My being affordable, I'm not saying people are happy with what they are paying, but they ARE buying houses at those prices so they MUST have the money.

 

[StacyStrong]

No really any different than anywhere else. My being affordable, I'm not saying people are happy with what they are paying, but they ARE buying houses at those prices so they MUST have the money.

No, not necessarily.

You don’t have the money if you’re also going into credit card debt every month, which many homeowners do.

 

[Starport Seven-Five]

pmi may or not be several hundred dollars per month depending on loan amount and down payment (5, 10, 15)

fha is 3% down and is not income restricted. there is a lending cap
VA is 0 down and is not income restricted but there is also a lending cap

i was in the mortgage busines for 25 years, and very few borrowers actually had 20% down

FHA loans have PMI for the life of the loan now also. You have to refinance to get out of it.

PMI rates have also changed a few times so people should check today's rates instead of going off of memory. The PMI on my townhouse that I purchased in 2009 wasn't bad but IIRC it would have been 3x more if I had bought a couple years later.

There are also some games lenders play with 80/10/10 loans where you put 10% down and take out a 10% personal loan to get around PMI.

Fun fact, the Rachel Cruze show ( Dave Ramseys daughter) was on the other day and she casually mentioned to a caller that she realized things were changing and sometimes a 5% or 10 % downpayment would have to do to get into the housing market. This a very notable departure from all they have said for the last 30 years on the Ramsey network. They don’t budge on their rules and I could barely believe what I was hearing.

Good. So many of Ramsey's rules are based in the era he grew up in. Hard to take him seriously when he talks about a $1000 emergency fund.

 

[DCLMP]

You can't be serious?

If you want to buy and you can't afford to buy one in your area then you move to an area where you can afford one or don't buy a house. That's what we did and that's what millions of American families do. Life is full of tough decisions that is just one of them.

Spending your life complaining and whining about socioeconomic injustice isn't accomplishing anything. News flash life isn't always fair.

 

[DCLMP]

No really any different than anywhere else. My being affordable, I'm not saying people are happy with what they are paying, but they ARE buying houses at those prices so they MUST have the money.

A lot of people have a lot of equity in their homes. They sell and move up so yes they probably can afford them.

 

[pigletto]

Spending your life complaining and whining about socioeconomic injustice isn't accomplishing anything. News flash life isn't always fair.

Assuming people are unaware that life is full of hard decisions is again a complete oversimplification and misunderstanding of the situation here.

Canada has sold so much of our housing supply to foreign investment portfolios (people who don’t live here and will never set foot in our country ) that our citizens can’t find homes. The lack of supply has driven rent to insane levels . We don’t have housing for the millions of new Canadian citizens moving to Canada . This isn’t a “move and you’ll be fine problem”. This is a we are allowing the 1% to eradicate the middle class problem.

And while maybe in America there may still be places to go that are affordable with jobs, this is becoming a crisis situation here.

 

[pigletto]

No really any different than anywhere else. My being affordable, I'm not saying people are happy with what they are paying, but they ARE buying houses at those prices so they MUST have the money.

It is actually different than a lot of places but that would take a willingness to do some research and an open mind.

 

[tvguy]

No, not necessarily.

You don’t have the money if you’re also going into credit card debt every month, which many homeowners do.

Well, that certainly will catch up with them eventually. What I am not seeing in Canada is the kind of homeless crisis we are having here. Nor has their been a crash in home sales in Canada. Those things would indicate to me that people can't afford houses in Canada.
The generalization I am seeing in searching the Canadian Real Estate is prices are higher to buy in Canada, but rents are lower than the U.S.
And it appears that the average house that is listed for sale in Canada sells in 18 days. The average in the U.S. now is 70 days.

 

[DCLMP]

Assuming people are unaware that life is full of hard decisions is again a complete oversimplification and misunderstanding of the situation here.

Canada has sold so much of our housing supply to foreign investment portfolios (people who don’t live here and will never set foot in our country ) that our citizens can’t find homes. The lack of supply has driven rent to insane levels . We don’t have housing for the millions of new Canadian citizens moving to Canada . This isn’t a “move and you’ll be fine problem”. This is a we are allowing the 1% to eradicate the middle class problem.

And while maybe in America there may still be places to go that are affordable with jobs, this is becoming a crisis situation here.

I don't know anything about Canada. I was referring to the US and the poster I originally quoted lives in the US.

 

[pigletto]

I don't know anything about Canada. I was referring to the US and the poster I originally quoted lives in the US.

My mistake. I assumed you were also referring to my posts. Fair enough . And for what it’s worth I don’t disagree at all that people need to adapt and try new areas and we can’t all live in the big cities.
It’s just that here it’s gone beyond relocation mostly.

 

[DCLMP]

My mistake. I assumed you were also referring to my posts. Fair enough . And for what it’s worth I don’t disagree at all that people need to adapt and try new areas and we can’t all live in the big cities.
It’s just that here it’s gone beyond relocation mostly.

I think China buying up your property is a problem your government needs to solve.

 

[pigletto]

Well, that certainly will catch up with them eventually. What I am not seeing in Canada is the kind of homeless crisis we are having here. Nor has their been a crash in home sales in Canada. Those things would indicate to me that people can't afford houses in Canada.
The generalization I am seeing in searching the Canadian Real Estate is prices are higher to buy in Canada, but rents are lower than the U.S.
And it appears that the average house that is listed for sale in Canada sells in 18 days. The average in the U.S. now is 70 days.

Cross section of articles from all political view points. We aren’t America, and our issues are different. You’d get a better understanding if you compared our average age for home ownership and how it’s shot up, or compared home prices to salary increase over the last decade.

Here’s a fun fact .. our banks are extending amortizations out to 80 and 90 years to hide the tsunami that’s coming and prop up the market.

https://www.bnnbloomberg.ca/some-ca...by-more-than-double-expert-1.1934133.amp.html

https://macleans.ca/longforms/the-end-of-homeownership/amp/

https://financialpost.com/news/hous...wcm/ffe55734-7d53-4c56-9728-8ad09e247d8e/amp/

https://nationalpost.com/opinion/gr...wcm/3efcc49e-88f8-4d7b-aeed-048fbbce5274/amp/

 

[tvguy]

Cross section of articles from all political view points. We aren’t America, and our issues are different. You’d get a better understanding if you compared our average age for home ownership and how it’s shot up, or compared home prices to salary increase over the last decade.

Here’s a fun fact .. our banks are extending amortizations out to 80 and 90 years to hide the tsunami that’s coming and prop up the market.

https://www.bnnbloomberg.ca/some-ca...by-more-than-double-expert-1.1934133.amp.html

https://macleans.ca/longforms/the-end-of-homeownership/amp/

https://financialpost.com/news/hous...wcm/ffe55734-7d53-4c56-9728-8ad09e247d8e/amp/

https://nationalpost.com/opinion/gr...wcm/3efcc49e-88f8-4d7b-aeed-048fbbce5274/amp/

Or people move out of the city to tiny villages. I know this town because I have family there. You can get a 2,800 square foot house on 20 acres for c$280,000
https://www.point2homes.com/CA/Home-For-Sale/SK/Paddockwood/Paddockwood-Acreage/146259369.html

 

[Starport Seven-Five]

If you want to buy and you can't afford to buy one in your area then you move to an area where you can afford one or don't buy a house. That's what we did and that's what millions of American families do. Life is full of tough decisions that is just one of them.

Spending your life complaining and whining about socioeconomic injustice isn't accomplishing anything. News flash life isn't always fair.

There are definitely policies that are being adjusted due to "whining and complaining" in the US. Parking minimums, restrictions on types of housing, etc have contributed to the amount of homes available in certain areas. Homeowners are a large population of the voters and they have a vested interest in keeping the supply of homes low to protect their equity.

Housing is relatively straight forward regarding supply/demand and we have a supply crisis in some areas. Could people move to a place where there is more supply? Maybe, but there also might not be any jobs there (which is why there is no demand).

Well, that certainly will catch up with them eventually. What I am not seeing in Canada is the kind of homeless crisis we are having here. Nor has their been a crash in home sales in Canada. Those things would indicate to me that people can't afford houses in Canada.
The generalization I am seeing in searching the Canadian Real Estate is prices are higher to buy in Canada, but rents are lower than the U.S.
And it appears that the average house that is listed for sale in Canada sells in 18 days. The average in the U.S. now is 70 days.

Things were great in the US in 2006 as well.

When things are unsustainable we should be addressing that before it's a crisis that craters the economy.

Or people move out of the city to tiny villages. I know this town because I have family there. You can get a 2,800 square foot house on 20 acres for c$280,000
https://www.point2homes.com/CA/Home-For-Sale/SK/Paddockwood/Paddockwood-Acreage/146259369.html

...and what kind of job prospects are there in that tiny village? What about entertainment? Health care? Schools?

There are a lot of factors that go into why people live where they live. I'd rather rent in a desirable area than own in some rural village. I say this as someone who relocated in 2016 for better job prospects along with lower cost of living also so I'm not afraid of moving.

 

[DLgal]

I think China buying up your property is a problem your government needs to solve.

It's happening here too and our government looks the other way.