Housing crisis in Canada

[ZZDown]

Hello fellow immigrants. I want to get your opinions about the hard topic of the housing crisis in Canada.

If you are like me, working regular job and not making millions, you have probably already thought about buying your own place. However a quick look at the housing prices instantly informs of how impossible this project is for an average person.

For 500k you can hardly afford a very small condo unit in Toronto, that would be so small that it's impossible to imagine a normal life in it, let alone living as a family with kids. Rental prices are also constantly going up, which makes it even harder to live and maintain any reasonable financial balance. If you want to buy anything relatively good, not even a detached house, but a townhouse, you probably can only start shopping from 900k - 1kk for something really unattractive. A mortgage loan for this kind of home, even with a 10% downpayment that would be 100k (which is already nearly impossible to save up given the rental and other ongoing expenses) would mean paying to your lender over 5k monthly on a monthly basis, which is completely impossible for an average person.

How do you go about it? From my perspective it's nearly impossible to buy your own place in our new home country of Canada. And just to emphasize, it was not always like this, even in early 2010-s the prices were already high and hard to deal with, but not unimaginable.

I always dreamed of getting my own home, but right now I cannot afford even a smallest property, and I don't think that the prices will ever become reasonable because it would mean a severe economic disaster preceded by deflation. I am considering leaving Canada because of this crisis now. How about you, what are your thoughts?

 

[canuck78]

Hello fellow immigrants. I want to get your opinions about the hard topic of the housing crisis in Canada.

If you are like me, working regular job and not making millions, you have probably already thought about buying your own place. However a quick look at the housing prices instantly informs of how impossible this project is for an average person.

For 500k you can hardly afford a very small condo unit in Toronto, that would be so small that it's impossible to imagine a normal life in it, let alone living as a family with kids. Rental prices are also constantly going up, which makes it even harder to live and maintain any reasonable financial balance. If you want to buy anything relatively good, not even a detached house, but a townhouse, you probably can only start shopping from 900k - 1kk for something really unattractive. A mortgage loan for this kind of home, even with a 10% downpayment that would be 100k (which is already nearly impossible to save up given the rental and other ongoing expenses) would mean paying to your lender over 5k monthly on a monthly basis, which is completely impossible for an average person.

How do you go about it? From my perspective it's nearly impossible to buy your own place in our new home country of Canada. And just to emphasize, it was not always like this, even in early 2010-s the prices were already high and hard to deal with, but not unimaginable.

I always dreamed of getting my own home, but right now I cannot afford even a smallest property, and I don't think that the prices will ever become reasonable because it would mean a severe economic disaster preceded by deflation. I am considering leaving Canada because of this crisis now. How about you, what are your thoughts?

This isn't an immigrant problem. This has affected all young Canadians. Same issue in Australia. US facing the same issue although some areas remain more affordable. This is primarily due to low interest rates.

 

[ZZDown]

This isn't an immigrant problem. This has affected all young Canadians. Same issue in Australia. US facing the same issue although some areas remain more affordable. This is primarily due to low interest rates.

I'd argue that it's altogether an immigrant and a non-immigrant problem.

I would suggest that many would reconsider their decision to move to Canada if they knew that normal housing would be so unaffordable. Immigrants usually have a choice, namely to immigrate or not, and for this decision they factor in different things. Locals do not face the same dilemma, although undoubtably the housing crisis is no less of a problem to them. Maybe a little less though since they have families that normally own some real estate, and immigrants frequently have no one else.

It is also easier for immigrants to move out of the country because even after getting their citizenship they do not have the same strong ties to the country as locals.

So to me this problem has its angle of application specifically valid for the immigrants.

 

[steaky]

Building materials (such as lumber) is skyrocketing - you can blame on this that makes housing increasingly unaffordable.

Maintenance, minimum wage in some province and insurance fee are also going up in case you don't realise.

 

[steaky]

Hello fellow immigrants. I want to get your opinions about the hard topic of the housing crisis in Canada.

If you are like me, working regular job and not making millions, you have probably already thought about buying your own place. However a quick look at the housing prices instantly informs of how impossible this project is for an average person.

For 500k you can hardly afford a very small condo unit in Toronto, that would be so small that it's impossible to imagine a normal life in it, let alone living as a family with kids. Rental prices are also constantly going up, which makes it even harder to live and maintain any reasonable financial balance. If you want to buy anything relatively good, not even a detached house, but a townhouse, you probably can only start shopping from 900k - 1kk for something really unattractive. A mortgage loan for this kind of home, even with a 10% downpayment that would be 100k (which is already nearly impossible to save up given the rental and other ongoing expenses) would mean paying to your lender over 5k monthly on a monthly basis, which is completely impossible for an average person.

How do you go about it? From my perspective it's nearly impossible to buy your own place in our new home country of Canada. And just to emphasize, it was not always like this, even in early 2010-s the prices were already high and hard to deal with, but not unimaginable.

I always dreamed of getting my own home, but right now I cannot afford even a smallest property, and I don't think that the prices will ever become reasonable because it would mean a severe economic disaster preceded by deflation. I am considering leaving Canada because of this crisis now. How about you, what are your thoughts?

I suggest you move to Calgary. It is still in Canada. Housing prices is almost the same as in the early 2010s and some even less.

Rental prices are even lower than it was in the early 2010s.

 

[canuck78]

I suggest you move to Calgary. It is still in Canada. Housing prices is almost the same as in the early 2010s and some even less.

Rental prices are even lower than it was in the early 2010s.

That is because the economy is in rough shape. If housing is affordable but you can't find a job that doesn't work either.

 

[canuck78]

I'd argue that it's altogether an immigrant and a non-immigrant problem.

I would suggest that many would reconsider their decision to move to Canada if they knew that normal housing would be so unaffordable. Immigrants usually have a choice, namely to immigrate or not, and for this decision they factor in different things. Locals do not face the same dilemma, although undoubtably the housing crisis is no less of a problem to them. Maybe a little less though since they have families that normally own some real estate, and immigrants frequently have no one else.

It is also easier for immigrants to move out of the country because even after getting their citizenship they do not have the same strong ties to the country as locals.

So to me this problem has its angle of application specifically valid for the immigrants.

High housing costs affect anyone trying to get onto the housing ladder in Canada. Family members owning homes does not normally help most young people. Whether an immigrant or not families members being able to gift you a large sum of money to put down a deposit does give people an advantage versus others. Unfortunately some parents are gifting money through things like reverse mortgages, line of credits, taking out a mortgage on their home without saving enough for retirement just to get their kids on the property ladder.

 

[steaky]

High housing costs affect anyone trying to get onto the housing ladder in Canada. Family members owning homes does not normally help most young people. Whether an immigrant or not families members being able to gift you a large sum of money to put down a deposit does give people an advantage versus others. Unfortunately some parents are gifting money through things like reverse mortgages, line of credits, taking out a mortgage on their home without saving enough for retirement just to get their kids on the property ladder.

But there are parents gave their adult children, their spouse and children to live with them in the family owned house. We've seen lots of examples in this forum.

 

[steaky]

That is because the economy is in rough shape. If housing is affordable but you can't find a job that doesn't work either.

Not if someone need to work there. We've seen people in this forum live in one Canadian province but work elsewhere or work from home.

 

[Copingwithlife]

I suggest you move to Calgary. It is still in Canada. Housing prices is almost the same as in the early 2010s and some even less.

Rental prices are even lower than it was in the early 2010s.

Exactly . I just came back from working in Calgary. Couple months moving back and will buy a place . For what $500k buys in Toronto, I can get a great place in Calgary with a yard , garage etc.
And the cherry on the top , it’s NOT Toronto.

 

[canuck78]

Not if someone need to work there. We've seen people in this forum live in one Canadian province but work elsewhere or work from home.

Makes absolutely no sense to buy a home in Calgary and work in another province. If people can find a good job in Calgary or work remotely moving to Calgary may be a good option. Wouldn't move and leave my job without finding another opportunity unless you make minimum wage then moving will likely be beneficial.

 

[Buletruck]

Makes absolutely no sense to buy a home in Calgary and work in another province. If people can find a good job in Calgary or work remotely moving to Calgary may be a good option. Wouldn't move and leave my job without finding another opportunity unless you make minimum wage then moving will likely be beneficial.

Lots of decent jobs available in Calgary and Alberta. It really is an employees market for those willing to work.

 

[canuck78]

Lots of decent jobs available in Calgary and Alberta. It really is an employees market for those willing to work.

Not for all types of professionals. Canada isn't limited to Calgary, Toronto and Vancouver. People shouldn't just move because of housing costs there are many factors involved. Know many professionals who have kept their jobs in Calgary in the recent years but also those who have lost their jobs and been unemployed for a long time before finding another job or had to take a pay cut.

 

[foodie69]

After years of living in BC, I moved to Prince Edward Island 2 years ago and I live like a king here. There is work, you just need to be flexible.

 

[steaky]

Makes absolutely no sense to buy a home in Calgary and work in another province. If people can find a good job in Calgary or work remotely moving to Calgary may be a good option. Wouldn't move and leave my job without finding another opportunity unless you make minimum wage then moving will likely be beneficial.

How about Windsor? Does it make sense to commute between that city and Detroit? You can join multiple discussion / threads in this forum.