Quote:
Originally Posted by pepper24
Calgary is affordable compared to Vancouver and Toronto but I wouldn't say it's that affordable overall, just in comparison. Not a bubble but not overly affordable.
It may be because I bought my first home in the early 2000s when it was about a 1/3 of current prices. Comparing wage increases from then to now and home prices have easily outpaced that.
I'd be miserable being in my 20s again trying to save for a down payment to afford a home today at current prices. I would never ask my parents to help me out either.
I'd seriously look at renting instead as I think there are better things to do with your money.
The whole ownership mentality in Canada is a big issue.
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I am 40, and probably on the very edge of people with that mentality. Even then, I know many of my peers who did ask their parents. That being said I am grateful for substantial economic help I had with schooling. So although I didn't get a straight cash gift, I certainly benefit from privilege enough to get to the point where I didn't need one.
I've already stated my views on issues with the "great generational transfer". We've also seen that the average CPer is substantially better off than the average Canadian.
I honestly think what we're seeing is destruction of a fundamental part of our society, which is economic mobility. Maybe economic mobility was a bit of an illusion to begin with. The previous circumstances were clearly far from perfect. However, baby boomers gaining hundreds of thousand or millions from their property and transferring that to their spawn is going to lead to some serious problems. I agree that, going forward, housing may not be the best investment. But that does nothing to deal the massive amount inequality caused by what's already gone on, or in, in the case of Calgary, what's about to happen.
For example, we've talked about how most people don't have $160k saved up. For someone who's worked very hard to save up $50k, what happens when all of a sudden the neighbour has wealthy parents pass on and gift them $500k from a house they purchased for $50k. Buying power is instantly wiped out.