Quote:
Originally Posted by Snuffleupagus
A $20,000 Toronto house in 1972 should cost $138,000 with inflation but yet 50 years later because of big banks, foreign money and the rich power brokers that same house costs about $1.5 million now. I know it might sound like communism but something should have been done years ago to protect todays young families.
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Entitlement: believing that because you want something means you have earned the right to have it. (My definition).
Sorry, not everyone should have the right to “buy” (aka mortgage) a home. It’s simply not realistic. These not-surprising-at-all rising interest rates are going to unfortunately hurt a lot of buyers that should not have bought to begin with. There will be people unable to make payments and have to walk away, just like in the 80’s. That’s sad and I don’t mean ill to them.
Many simply do not understand that owning a home is often more expensive than renting, and in some economic climates renting offers a better monetary return than ownership after taking into consideration ALL costs including opportunity cost related to funds. There is a reason many of the wealthy (individuals as well as corporations) lease or rent their properties - because it makes more sense financially and taxation wise.
As for home costs over the decades here’s a pretty good link below. It’s long though. Touches on regional differences which does matter.
https://listwithclever.com/research/...torical-study/
Still however does not address my one statement, which I think matters, and that is how have homes actually changed since the 70’s? In terms of size, technology, safer requirements, future proofing, area and neighborhood and city development and infrastructure, overall complexity? Can’t just say that the 1970’s house of $100k should be a $700k house of today because that would not account for the additional mandatory upgrades.
I know a few people that own/manage a few (1-3) rental properties. They’re not slum lords. They’re pretty normal and they’ve been scared for a few years and moreso now. They have not been making huge dollars, perhaps 3-6% ROI which really has not been great compared to markets since 2008.