The Good ‘Ole Days
I met with an old friend for coffee the other day, we don’t get to see each other very often so when we do we’re often spilling, dishing and catching each other up on our same aged, grown adult children. I’m sure every mother in every generation gets together with her girlfriends and laments about “how much we do for our kids” asking “when does it stop” Let’s face it, it’s a different generation, our kids are moving at a pace and direction we baby boomers and Gen X’ers just can’t make sense of.
Back in our day it was finish high school, get a job you can retire at, marry, buy a house and have children.While some of those ideals may still be goals, it’s happening in a different decade then us and often it’s the “house“ that looks very lofty or unattainable for young people/couples these days. As we continued to make comparisons my friend responded with “well it’s all relative, we had to save hard for a downpayment, make sacrifices” and absolutely we did, to a degree. If you look at the average BC box house in the Fraser Valley particularly Abbotsford, in the late 90’’s early 2000’s an affordable 15-20 year old house could be purchased for somewhere in the neighbourhood (ha ha catch the metaphor) for 150,000-250,000 with a possible $7,500 - $10,000 down payment leaving the buyer with affordable mortgage payments of around $ 1100 -$1300. The average price of today’s modest home in Abbotsford is upwards of $700,000 that same modest type house has more than tripled, in fact quadrupled and then some ...have our wages/ salary reflected that? I would say no in most cases. If you were qualifying for a mortgage at a job making $25/hour back in the day (often one income earner) I highly doubt that job or rate of inflation raise has increased to $100/hour in today’s comparison.
Check out this article from June 13, 2019 written by written by CTV news writer Jonathan Forani, where he talks about “the dramatic gap between the cost of owning a home and the ability of Canadian millennials to afford one”
This brings me to my point, buying a home is still the best investment you will make in your lifetime you just may have to approach it differently. My mission is to be a guide to first time home buyers , whether you’re a young couple, or, parents like myself and my friend, wondering how you can assist your kids into the market (without sacrificing your retirement ) so they can realize the dream of home ownership. Join me here at " Let's do coffee" over the coming months where I will give you some tips on how you can support your kids “manageable” expectations vs the “house hunters” type (un)reality tv shows. Some upcoming information ….
- Assisting with the down payment
- Buying a home as an investment
- Co-purchasing with your children
- Home sharing
If you have and questions or remarks, or something you want to know about not on the list please feel free to comment or message me privately, or better yet, let’s do coffee