I realize that you should take national surveys with a serious grain of salt, but they can sometimes provide some rather interesting information. A little while back, the local newspaper reported that about half of Canadians aged between 20 and 30 are still living at home with their parents. Falling under this category, I let out a fairly substantial sigh of relief, realizing that I am not alone. The housing prices in Vancouver, as I’ve said before, are way too high for the average person, especially if they don’t have any sort of substantial nest egg saved up.
Nearly one year ago, I predicted that the bubble was about to burst in Vancouver’s booming housing market. While the market has certainly slowed down, I’d say that the bubble is far from bursting. To put things in context for anyone not living in the Vancouver area, my cousin bought a one-bedroom condo just east of the downtown core a year or two ago. He tossed in the down payment before the first shovel broke ground and he paid $250,000 for the 700 square foot unit. The building is now complete and his real estate agent has valued the suite at $370,000. That works out to over 500 per square foot.
With prices like that — the average single detached house in Vancouver proper is currently north of $700,000 — it’s no wonder that many young people are seeking homes for rent rather than homes to buy. It also certainly doesn’t help that interest rates have taken a fairly steep increase in recent years as well. If you’re looking for a ten-year term, it’s not out of the ordinary to get a mortgage rate of over 8%. What this means is that for $300,000 loan, the home mortgage payment is about $2400 a month. Add strata fees, utilities, insurance, food, clothing, transportation, and other set costs and you’re looking at a rather expensive lifestyle, even if it’s not exactly posh. And that doesn’t even include the initial costs of buying furniture and hiring a moving company.
Of course young people in Canada are having a very hard time moving out from mommy and daddy’s place. I was born and raised in Vancouver, so it’s difficult for me to imagine living in any other city. Traveling is great — Ensenada and Six Flags were a lot of fun — but that’s for a holiday, not for a permanent relocation. At the same time, housing prices in the Maritimes, for example, are much lower than in Vancouver.
A luxury home in Vancouver is one that is priced at $2 million or more. According to official industry definitions, the prevailing “luxury home” in (I think) Nova Scotia is one that is north of $200,000. You can’t even get a one bedroom apartment for that price in Vancouver, let alone a “luxury home.” Maybe I should just move State-side and take advantage of the plummeting prices resulting from the sub-prime mortgage crisis.
Any other young Vancouverites feel my plight? Any of that aforementioned 50% want to chime in with their comments?
As a Chinese kid, you’re fully justified in living at home with the parents 😉
Lol, I know a guy in his 40s that still lives at home and parties like a 20 year old.
I love our housing situation though, I bought my condo a few years ago when it was still a hole in the ground and two years later, when I moved in, it already went up $60k. Now, it has doubled in value! With my increased home equity I’m now looking for a bigger, nicer home to buy.
If you don’t mind me asking, how old are you and how old were you when you moved out?
I think I could have moved out sooner if I didn’t go to UBC, but I have no regrets about getting that “higher education.”
I’ve moved out with a girlfriend when I was about 24ish. I would move back home whenever I was single 😉
My parents moved into a condo so I would have no excuse to live with them anymore, lol. I was originally going to rent out my condo (and have the renters pay for my mortgage) while I lived in the family home’s lower level while the upper level was rented out. My dad decided to sell the house so I moved into my condo upon completion.
The family home is still sitting empty to this day as my dad never put it on market 🙁
Speculation about a drop in real estate prices is wishful thinking. You might as well stick a Dildo up your ass and wish for the tooth fairy to buy you a house.
Historically speaking, real estate bubbles in BC don’t often burst. It’s the rate of increase that changes.
My only advice is to hustle your ass off and save those hard earned dollars. Get in the market now, while properties are still affordable in certain areas. Don’t be picky about owning a place in YaleTown or Ditch-Mond. You need to start somewhere.
You can start saving money by skipping those Dot-Com-Poser lunches and countless restaurant outings. After all, a little bit helps. It did for me…
Hello Lemmy. Still bitter, huh?
(You do realize that I have your IP, yes?)
Feel free to comment here and speak your opinion — that’s fine by me, because everyone is entitled to their opinion — but if you’re going to speak your mind, at least tag your comment as yourself and not such a hateful “username”. The lack of an email address really gives you credibility.
Oooh, Dot Com Drama 😉
Well, the issue is finances, really. Nobody at 18 can afford to actually buy a place so everyone has to rent. Renting is basically throwing money away so living at home until you have enough money to purchase a place is a better option.
Sure, it feels great for your ego to move out away from your parents but personally, I’d rather get a bit of a head start in building a solid financial foundation. But hey, if you’re in your 20s and live at home, at least man up and buy groceries, pay some of the bills and such though.