Calgary Real Estate predictions?

[rd_aaron]

Originally Posted by gladaki

I am thinking of starting a thread ...House hold income vs House you bought.. but i guess it not good to ask house hold income of forum members

Originally Posted by ranchlandsselling

Just ask the ratio

Household income vs house price isn't that indicative because you could have someone making $100k buy a $600k house with a $300k down payment (previous house equity) so their ratio is 6:1 but they only have a $300k mortgage. The original mortgage at purchase vs household income ratio might be better.

[tvp2003]

^^ Mortgage? This is CP... I thought most people just buy houses in cash?!?

[Bill Bumface]

I'd love to see household income vs. initial mortgage balance, or largest mortgage balance for those that have done a refinance.

[MillerTime GFG]

Originally Posted by tvp2003

^^ Mortgage? This is CP... I thought most people just buy houses in cash?!?

[mrkajz44]

I'll kick this off, as I just bought a house. Initial mortgage to gross household income is about 3.5:1

[ranchlandsselling]

2.54:1, sfh, 95% ltv

[GP_Matt]

1.9:1, sfh, 80% ltv

[Bill Bumface]

2.6:1, sfh, 80% ltv (avoiding CMHC is probably the greatest forced savings mechanism this country has)

[MillerTime GFG]

Originally Posted by hulkrogan

2.6:1, sfh, 80% ltv (avoiding CMHC is probably the greatest forced savings mechanism this country has)

While I do agree that avoiding the insurance premium is more often than not beneficial, I do have some clients/advisors I work with that will do an analysis as to whether they can do better by paying less than 20% down and use that money to create a better ROI than what the premium would have been in the first place.

[MillerTime GFG]

Just did a quick tally on my average mortgage-to-income ratio for 2014, and it came in at 2.99.

Of course that includes refinances/transfers and mortgages where the clients income wouldn't qualify so they have a cosign. Generally speaking, the lower the income, the higher the ratio. A lot of people want a detached single family, so you really have to start in the 350k + range.

[Maccalus]

I built new 3 years ago by myself. Half of a duplex. I put approx. 14% down when I bought.

When I put the initial deposit down, 4.63:1
I got a raise between then and when I took possession which took me to 3.86:1
I am now married and a couple more raises so we are now sitting at 1.73:1

[squiggs96]

Originally Posted by tvp2003

^^ Mortgage? This is CP... I thought most people just buy houses in cash?!?

Close. Since a mortgage isn't debt, if you take the purchase price and subtract the amount of debt on the place, it's like you've paid for the entire place in cash.

To add to the discussion, in 2008 I bought a townhome with a purchase price : household income ratio of 2.89. We had a LTV of 74%.

We recently bought a lot/house to demo with a price:income ratio of 3.89 with a LTV of 80%. We will be building a house on the lot which will raise our price:income ratio to 6.25, but we are paying for most of the build with cash. Once the build is complete we'll likely have a LTV of 65% (value being the total cost, with no bump for unrealized gain if the value of our house has risen). At this point we can either refinance the house in order to pull out some equity and make it an 80% LTV again, or just pay it down. We'll decide that around January 2016. My numbers might be a little skewed as the place is in Vancouver West (not West Vancouver).

[mrkajz44]

Originally Posted by squiggs96

Close. Since a mortgage isn't debt, if you take the purchase price and subtract the amount of debt on the place, it's like you've paid for the entire place in cash.

[DoubleF]

Income to Mortgage (Single person)

3.7:1

LTV at purchase (Had to look that one up)

90%

[Flamenspiel]

Originally Posted by squiggs96

...Close. Since a mortgage isn't debt, if you take the purchase price and subtract the amount of debt on the place, it's like you've paid for the entire place in cash...

Ok, this is sarcasm? and it is funny, but for those that take the comment at face value(accounting basics):

• Assets: tangible and intangible items that the company owns that have value (e.g. cash, computer systems, patents)
• Liabilities: money that the company owes to others (e.g. mortgages, vehicle loans)
• Equity: that portion of the total assets that the owners or stockholders of the company fully own; have paid for outright
• Revenue or Income: money the company earns from its sales of products or services, and interest and dividends earned from marketable securities
• Expenses: money the company spends to produce the goods or services that it sells (e.g. office supplies, utilities, advertising)

[chemgear]

Originally Posted by squiggs96

Close. Since a mortgage isn't debt

[Regular_John]

What an odd thing to say, I mean I know interest rates are low, but they aren't zero. Although in a way this is a relief to have that mortgage monkey off my back.

[squiggs96]

Originally Posted by chemgear

Many people did not. I thought it was as common as fata around here.

[chemgear]

Originally Posted by Flamenspiel

Ok, this is sarcasm? and it is funny, but for those that take the comment at face value(accounting basics)

Originally Posted by jaydorn

What an odd thing to say, I mean I know interest rates are low, but they aren't zero. Although in a way this is a relief to have that mortgage monkey off my back.

Originally Posted by squiggs96

Many people did not. I thought it was as common as fata around here.

http://forum.calgarypuck.com/showthread.php?p=3260427

[Travis Munroe]

just had to be brought up again