Quote:
Originally Posted by GGG
Those burdens are all hidden to a large degree when the purchasing decision is made. You should be saving around 1% of the value of your home per year for required maintenance (not renovations). So the 450k Condo having a $500 per month Condo fee might be low considering it also includes insurance, landsacaping, garbage collection etc.
But when buying a Condo the Condo fee is front and Center in the purchase price whereas the time and money for maintenance in a home is not.
So humans inability to make rational decisions and the CMHC insurance criteria for how monthly expenses are calculated vs mortgage limits both incentise SFHs over the middle.
|
It hasn't been as big of an issue so far for Calgary, as a lot of people historically were just able to build new homes. Going forward, we are going to see a lot of young families now burdened with the neglect of previous generations as they move into older homes.
As you say, you need to have constant saving for upkeep of a detached home. There are many older people who simply have not done any or adequate upkeep. Now desperate families are going to be swamped with paying the bill for all that neglect.