I'm Just Saying... Part 2

I had the good fortune to visit Vancouver for the Century 21 Canada Conference this fall.  It certainly is a beautiful city and I can definitely see the appeal of living there.  However, I struggle with the cost of housing.  Here is a current example.  The home above is listed for sale at $795,000.  It's described as "that perfect fixer upper in an amazing neighbourhood" with street parking.  So let me get this straight.  If I put 20% down or $159,000, I'm left with a mortgage of $636,000.  Even with a variable rate of 2.25%, I've got monthly payments of $2770 with a 25 year amortization.  But wait, I still have to fix it up and I don't have a garage or a driveway!  This can't end well.   

It reminds me of a conversation I had with a Realtor from California over lunch at the Mandelay Bay casino in early 2005.  She related that the average sale price in her area was approximately $800,000.  She also indicated that the only people who could afford to live there were people who had always lived there and whose homes had greatly appreciated.  The last figure I saw quoted was that average prices in California had declined 59%!

I can hear people now saying this is Canada and it's different here.  I certainly hope they're right because if the only difference turns out to be timing, we're going to be in a whole world of pain. 

For the record, if you've got $795,000, you can buy a 3500 sq ft home on 1/2 acre in the Westmount area of Kitchener-Waterloo.

As always, feel free to call/email for sound advice on your real estate needs 519-570-4663 Jeff.Gingerich@Century21.ca

 

Jeff Gingerich

Jeff Gingerich

Sales Representative
CENTURY 21 Home Realty Inc., Brokerage*
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