Quote:
Originally Posted by The Fonz
Blaming boomers for why you can’t afford a home is just silly. When those boomers bought homes in 1980 for ~$80k (am I high? low?), interest rates were around 18%, with a government rebate getting them down to around 12% (someone please correct me if I’m wrong).
$80,000 over 25 years @ 12% interest
= $826/month, in 1980
= $2726/month, in 2019 buying power ( https://data.bls.gov/cgi-bin/cpicalc...1&year2=201909)
$2700 is the monthly payment on a $590k mortgage @ 2.7% interest, today. |
Yes, but you never actually mortgaged 100% of the home.
You're also comparing the time just after a major crash, when the government was doing as much as possible to stop people from borrowing money.
So basically you're argument is that people now can buy a home in an undesirable area now, and the new norm for that is comparable to the worst time in Canadian history to mortgage a home.
In what way was the housing climate in 1980, just after the government jacked interest rates, considered positive. People complained non-stop about their inability to buy houses and it was a major national crisis.