Quote:
Originally Posted by kevman
Apparently my numbers made no sense...
What I was trying to say is that while the median has only gone down 5% the actual cost of purchasing a home has gone WAY down. Or in other words the price people are willing to pay has gone WAY down.
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Your numbers made sense, thanks for posting them. However your analysis of the numbers does not make sense IMO.
Your analysis is very similar to the RBC affordability study done earlier this year that I posted somewhere back in the thread. Basically, Calgary is in a 20 year best for affordability when you look at monthly payments/incomes, because of where rates are.
What you're saying is "willing to pay" I would call "needing to pay". Right now, with rates where they are and incomes in Calgary where they are, most people are handling their payments quite well and in an easier situation than they were 5 years ago.
Quote:
Originally Posted by 1stLand
For someone looking at getting into the real estate market (1st Time Homebuyer) who does not have job security or is just entering the job market.
1. Do not over-extend yourself - Buy something you can afford (ie: Condo's / Townhome)
2. Prepare to own this home for atleast 5 years
3. Expect fluctuations in the value of your home for the next few years
4. Budget for repairs and miscellaneous expenses
5. Take on a room-mate if possible
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Good list; my list for FTB is very similar (of course, pt.5 depends on the individual situation)
I also encourage them not to look at their primary residence as an investment play. If the market goes up and they want to switch, they'll sell higher but buy back in higher anyway, so they shouldn't be overly concerned with flipping their primary residence.