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Affordable housing in Victoria


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#701 Nparker

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Posted 06 September 2017 - 10:03 AM

Meh. When I renewed my variable, it was at 1%, so now its back where it was. Shrug.

True enough. I've had a very good run for a long time. I imagine I can cope with an extra .25%.



#702 TallGuy

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Posted 06 September 2017 - 10:10 AM

Lumber prices on average have increased about 40% in the last year, but that has nothing to do with the fires, that is mainly to do with the US softwood tariff and increased demand

 

Plywood prices have increased by about 70% over the last year.  That is partially to do with demand, but mainly have spiked in the last few months mainly because of the fires.  Most of the plywood plants were in the fire areas so either their supplies were reduced or they shut the plants down

 

There is no doubt that housing construction costs are skyrocketing.  Coupled with the rise in interest rates this morning it will be interesting

 

This doesn't include the new BCBC requirements nor the HPO exam. New home ownership shall soon be a privilege of the upper-middle class and wealthy. More and more of the real estate industry is going to rely on foreign investment as the cost of starter condos and the likes grow out of the reach of the average wage earner.



#703 tjv

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Posted 06 September 2017 - 04:32 PM

sorry, are you saying you are paying an interest rate of 1% or do you mean 1% above prime?



#704 lanforod

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Posted 06 September 2017 - 06:35 PM

Overnight rate was at 1% when I renewed my mortgage as variable. Went down just a couple months later, then down again. Finally back to 1% today.

Variable rate is based off prime, which is based off the overnight rate.  The prime rate is also a bit variable depending on the bank (or credit union, in my case).

 

What my rate actually is, is irrelevant, and I don't actually remember off the top of my head :).


Edited by lanforod, 06 September 2017 - 06:37 PM.

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#705 tjv

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Posted 06 September 2017 - 07:22 PM

ah ok thanks for clarifying

 

I was on a variable rate up until a few months ago and then I locked it in for 5 years.  I'm debating about having the money ready to pay off my mortgage completely in 5 years in case rates really take off by then



#706 VicHockeyFan

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Posted 06 September 2017 - 07:25 PM

You'd be surprised how humans adapt. The 18% interest rates of the early 80's did not lead to homelessness.
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#707 LJ

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Posted 06 September 2017 - 07:28 PM

You'd be surprised how humans adapt. The 18% interest rates of the early 80's did not lead to homelessness.

It did however lead to a lot of people walking away from their houses and letting the bank take them back.


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#708 VicHockeyFan

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Posted 06 September 2017 - 07:38 PM

It did however lead to a lot of people walking away from their houses and letting the bank take them back.

 

It sure did.  And they went back to renting like many of us.  Not the end of the world.  We* all carried on.

 

*I was 12 and lived at home with parents, but you know what I mean.


Edited by VicHockeyFan, 06 September 2017 - 07:39 PM.

<p><span style="font-size:12px;"><em><span style="color:rgb(40,40,40);font-family:helvetica, arial, sans-serif;">"I don’t need a middle person in my pizza slice transaction" <strong>- zoomer, April 17, 2018</strong></span></em></span>

#709 Sparky

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Posted 06 September 2017 - 08:48 PM

I paid 16% for 5 years.

I had to cut pictures of tomato soup out of magazines, tape them to the bottom of the bowl, and fill the bowl with hot water so I thought I was getting something to eat.
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#710 Nparker

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Posted 06 September 2017 - 09:08 PM

...I had to cut pictures of tomato soup out of magazines, tape them to the bottom of the bowl, and fill the bowl with hot water so I thought I was getting something to eat.

But you could still afford magazines, tape and a bowl. Total one-percenter.


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#711 Bingo

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Posted 06 September 2017 - 10:03 PM

I paid 16% for 5 years.

I had to cut pictures of tomato soup out of magazines, tape them to the bottom of the bowl, and fill the bowl with hot water so I thought I was getting something to eat.

 

That's nothing!  We never even had scissors, we had to chew thing to open them...and we only had one bowl and that was to put on Jimmy's head so mom could cut his hair.

Every September a fog bank would roll in and mom would send us out with the bowl and a sponge to see if any of it tasted like pea soup.



#712 lanforod

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Posted 07 September 2017 - 07:04 AM

That's nothing!  We never even had scissors, we had to chew thing to open them...and we only had one bowl and that was to put on Jimmy's head so mom could cut his hair.

Every September a fog bank would roll in and mom would send us out with the bowl and a sponge to see if any of it tasted like pea soup.

 

So how'd mom cut Jimmy's hair without scissors?


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#713 spanky123

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Posted 07 September 2017 - 07:09 AM

It did however lead to a lot of people walking away from their houses and letting the bank take them back.

 

You know it wasn't a lot. Back then a house was $60K and most owners had 25% down so it is not like the extra couple hundred a month in interest would break the bank.

 

I really doubt that we will see interest rates climb above 2%-3% any time in the near future. The difference now is that the Government is so much more in debt that they cannot afford the extra payments. 



#714 lanforod

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Posted 07 September 2017 - 07:17 AM

You know it wasn't a lot. Back then a house was $60K and most owners had 25% down so it is not like the extra couple hundred a month in interest would break the bank.

 

I really doubt that we will see interest rates climb above 2%-3% any time in the near future. The difference now is that the Government is so much more in debt that they cannot afford the extra payments. 

 

Above 2-3%? Rates are at 2.89% right now if you get a closed variable mortgage. I can totally see it going up to around 4% over the next 5 years. 4% is not outrageous, and as I recall, still within the stress test numbers for anyone who got a mortgage since introducing the stress test.



#715 lanforod

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Posted 07 September 2017 - 07:21 AM

I know its possible to get less (or more). 2.89 is prime in most places though. If you get a better rate, you're sacrificing some of the terms of the mortgage to get that better rate.



#716 Mike K.

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Posted 07 September 2017 - 12:17 PM

It'll be interesting to see what happens in October.

 

Currently the biggest issue (I think) that will affect Canadians is Trudeau's corporate tax overhaul that will heavily impact the small business economy. Unfortunately, the real-world implications of corporate tax increases on small businesses means prices on goods and services will rise.


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#717 FirstTimeHomeCrier

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Posted 07 September 2017 - 02:16 PM

Above 2-3%? Rates are at 2.89% right now if you get a closed variable mortgage. I can totally see it going up to around 4% over the next 5 years. 4% is not outrageous, and as I recall, still within the stress test numbers for anyone who got a mortgage since introducing the stress test.

 

When I qualified for my mortgage in the spring, I believe the stress test was at 4.54%. I would gladly take higher interest rates in exchange for lower house prices because it makes downpayments more achievable. As it stands, I would have to save every penny of my gross income for a year to be able to put 10% down on one of the cheapest SFHs in Greater Victoria. Sometimes I like to pretend that if I scrimp and save for 5-10 years, I'll be able to afford to own at least 20% of a proper home, and that I won't be spending the next 25 years paying off the stucco-clad spider terrarium* I call a condo.

 

*I'm actually quite at home here, but it's a tough space to share with an arachnaphobe.


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#718 RFS

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Posted 07 September 2017 - 02:17 PM

^houses have spiders too. It's just that time of year. Just buy some poison.
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#719 lanforod

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Posted 07 September 2017 - 02:49 PM

^ yup. I'm seeing 2 inch leg span monsters most days now. Dustbuster is getting a good workout.



#720 sdwright.vic

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Posted 07 September 2017 - 03:51 PM

Spy spearmint around openings. Drill or poke a hole in place near window sills and doors. No spider issues anymore.
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