Quote:
Originally Posted by MillerTime GFG
Without a doubt, there are big differences between the Vancouver and Calgary markets, which was one of my points in regards to the Fed’s policies.
I think we’re actually arguing about two different things. I’m certainly not saying first time buyers aren’t getting help from family, because they are. My argument was that most 35 year olds don’t have 160k liquid assets, and most first time buyers are not putting 20% down with the help of a gift. Most commonly gifts are to get someone over the 5% hump. I do some business in Vancouver, but not a lot, so I can’t say for certain, but I imagine this would largely be the same there.
And yes, I do own a small brokerage in Calgary for those wondering and have been brokering for 8 years.
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I think the differences between Calgary and Vancouver are caused by the market. If a house in Calgary is 500k, the minimum down-payment is 25k. A professional couple with 2 incomes should be able to save that, imo.
If a house in Vancouver is 1.5MM, wouldn't the down-payment be $300k? Because mortgage insurance isn't available above $1MM, correct? That's a pretty big chunk to save, not realistic for most people.
And since Vancouver parents who own real estate are all paper millionaires, it makes sense they'd help their kids stay in the city.