Owning your own house is a real estate dream for a lot of people. However, these dreams are quickly being crushed as prices of real estate properties in Toronto and Vancouver soar unreasonably. A lot of people have succumbed to the fact that they will be renting for the rest of their lives.
CBC News featured the point of views and actual experiences of some middle aged residents that are earning very good salaries. Henry and Kat Armstrong with their 3 kids have been renting an apartment for the past 2 years. Both have more than average salaries and a small business yet they still can't see themselves buying a house of their own unless they win a lottery or take a mortgage that would cripple them in the process. Vicky Shearer and her husband and 3 kids have also been renting for the past 5 years and have relocated twice. Both families admit that they are at the mercy of their landlords which creates no sense of security and stability as a family.
Josh and Jessica Bowman just moved in Toronto and experienced firsthand what it was like to try and search for a real estate property that suited them. Only to watch it crumble right before their eyes. In paper a $500,000-2 bedroom bungalow was very viable but the actual experience was totally different. She described the actual houses they saw as "crapholes." The houses required major repairs but the owners refuse to have it fixed because they could still sell it. Finally, they found a $519,000 house which was small yet desirable only to lose it to a buyer at a bidding war $70,000 over.
The Globe and Mail gives additional details on the Toronto Vancouver real estate market. These are the facts: People are willing to pay $716,000 for a semi detached dilapidated house. A satisfactory bungalow in Vancouver can be sold to nearly $2.5 million. A detached house in Greater Vancouver has an average price of $1.4 million. The Globe adds that 40 % (Vancouver) and 35% (Toronto) of the young Canadian buyers where actually able to get the house they wanted because of a push from their family. Workopolis, is a website that helps calculate one's annual income in order for you to afford a house in any of the major cities in Canada. To be able to purchase a house in Ottawa, Toronto, and Vancouver one has to have $75,000.00; $113,000.00 and $147,000.00 respectively.
The prices of real estate are clearly getting out of hand in Toronto and Vancouver's real estate market. As a result, a lot of people's dreams of owning their own house wont become a reality. They have slowly realized and accepted the plight of a life of renting. However, if there is no control rental market the prices will surely soon rocket out of control.
