Quote:
Originally Posted by bizaro86
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.
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The other thing is most of these buyers are move up buyers, so it's a combination of equity they've made in the market and/or help from parents to buy at those prices.
I have lots of clients selling Vancouver condos for around $900,000 & buying houses in the suburbs for $1.2-$1.4 with a rental suite that will bring in $1500-$2000/month.
And they initially bought that condo around $500,000-$550,000 so they have 500k in equity built up.
You also have couples buying together who each owned a condo before, so they sell both condos (with gains they've made) and buy 1 house/duplex/townhouse.
Can't say I've ever had a first time buyer just save up $200,000, qualify for an 800k mortgage and buy a million dollar property.
People to start smaller and work up the ladder.