To all our Canadian friends

[Rocky]

First, let me say I am a semi-talented handyman and I enjoy doing projects around the house and for my daughter and son-in-law. I also enjoy watching TV home improvement, make over and remodeling shows. I have been watching a couple of shows that I believe come out of Canada (Love it or List It, Property Brothers) and I am astounded by the prices quoted for homes. For example, a recent show had a 1000 square foot home for about $600K and homes well under 3000 square feet can exceed $1 million. If you are familiar with either of these shows, can you determine where in Canada they originate? My questions are:

- Are the prices really that high for homes in Canada?
- What do banks typically require for "loan to income" ratios?

Just curious because I used to design homes for a couple of custom builders in the Columbus, Ohio are and our houses ranged from $200 to $300 per square foot depending on the finishes.

Thanks.

 

[Putterrr]

I believe that show is in the Great Toronto Area and yes it is expensive there. I have a friend in Mississauga that owns a 2 storey townhouse and it is around 450. I think I saw a stat the other day where the medium house price in Canada is 430,000. The big cities (Toronto, Vancouver) where most of the sales occur are pricey. Smaller town and provinces are not that high but still expensive.

No idea what bank require for down payment or income ratios.

cheers

 

[JohnT]

Not to hijack this thread, but I REFUSE to watch any home improvement show.

What put me off of them was when I installed a parquet wood floor just after getting married. Between stripping off the old floor, prepping the floor, laying the flooring, cutting all of the pieces, it took me the better part of 3 days.

All the while, my wife kept at me saying "Norm from "This Old House" would have had this done in only one 30 minute episode"....


(GRRRRRRRR)

 

[Rocky]

Not to hijack this thread, but I REFUSE to watch any home improvement show.

What put me off of them was when I installed a parquet wood floor just after getting married. Between stripping off the old floor, prepping the floor, laying the flooring, cutting all of the pieces, it took me the better part of 3 days.

All the while, my wife kept at me saying "Norm from "This Old House" would have had this done in only one 30 minute episode"....


(GRRRRRRRR)

I know exactly what you mean, JohnT. They do make it look so easy. I have, however, seen some of the "outtakes" from some of the programs which show that things don't always go as smooth as silk. Some of them are hilarious and are the same blunders that we all encounter.

I had the pleasure of meeting Norm Abram at a Home Show in Rochester, New York that was sponsored by a local supplier, Chase-Pitkin. He told the story of how he got started in TV and it was a case of being in the right place at the right time. Norm was a self-employed carpenter who happened to be working on the producer's home of "This Old House" when the show was being planned. Bob Vila said to the producer, "What we need is an excellent carpenter on the show," and the producer said, "I have just the guy! He is putting an addition on my house, his work is super and he doesn't waste a thing when he works!" They offered Norm the job and he went from struggling to make $150-200 a week to making well into six figures and even ended up with his own show, "The New Yankee Workshop." If you have ever watched that show, he has a dream workshop with every conceivable tool one could imagine. These tools, by the way, would show up at the site from the manufacturers gratis. All they asked was for Norm to use the tool on the show. It was their most effective form of advertising. He was a very interesting guy and just as nice and approachable as he seems on TV.

 

[ibglowin]

I agree Rocky. My wife and I love to watch these shows and get ideas for remodeling etc. We both work and make a very good combined salary but we always wonder what these people do to be able to purchase a 600K house at such a young age. Perhaps salaries are (that much) higher?

We keep saying we are going to go hang out in the big box stores looking for one of those guys who walk up and ask you if you need help then they make over your kitchen or backyard…..

 

[berrycrush]

First, let me say I am a semi-talented handyman and I enjoy doing projects around the house and for my daughter and son-in-law. I also enjoy watching TV home improvement, make over and remodeling shows. I have been watching a couple of shows that I believe come out of Canada (Love it or List It, Property Brothers) and I am astounded by the prices quoted for homes. For example, a recent show had a 1000 square foot home for about $600K and homes well under 3000 square feet can exceed $1 million. If you are familiar with either of these shows, can you determine where in Canada they originate? My questions are:

- Are the prices really that high for homes in Canada?
- What do banks typically require for "loan to income" ratios?

Just curious because I used to design homes for a couple of custom builders in the Columbus, Ohio are and our houses ranged from $200 to $300 per square foot depending on the finishes.

Thanks.

Same in Greater Vancouver area. Back in late 80's when I was a graduate student in UBC, I sub-let a room for a few hundred CND from a lady who rented the house for a couple of grand from the landlord. The house was around 2000sft and was valued at 2mn back then. Guess how much is it on zillow now? Just add one zero at the end.

 

[the_rayway]

Putterr is correct, TO and Vancouver/Victoria, Calgary, etc. are very expensive by Canadian standards.

I live in Manitoba and we have some of the most reasonable housing prices around. For example: http://www.realtor.ca/propertyDetails.aspx?PropertyId=14504568 I spent 12 years in this house growing up. It's 2000 sq feet on the main with a full 2000 in the fully-finished basement. It's on 1.25ish acres. Purchased for $160K, Sold 12 years later for $350K, and now is for sale at $415K.

My current home is a post-war 2-story with 1500sq' and a full basement, single garage and 45x120 lot. We purchased it for $230K just a couple of years ago. It was kept in immaculate, if dated condition. Comes out to $153/sq foot (not incl. basement). It's a beautiful home, and solidly middle-class-esque. Our first home was $130K at 1200 sq feet.

 

[zalai]

Canadian Cities Average House Prices April 2014

City Average House Price 12 Month Change
Vancouver, BC $801,000 + 8.3 %
Toronto, Ont $578,000 + 9.8 %
Calgary, Alb $458,000 + 6.5 %
Ottawa, Ont $374,000 + 0.5 %
Montreal, Que $326,000 + 1.2 %
Regina, Sask $317,000 + 0.2 %
Halifax, NS $281,000 - 0.1 %
Fredericton, NB $185,000 - 0.2 %
You have to put down minimum 5% down payment . If your down payment is less than 20% you would have to buy a government backed insurance (cmhc ) . The total debt limit is at 44% of your income .
Foreign investment is the cause for some of the high condo prices in Toronto and Vancouver . Because of the low global interest rates investors (foreign many from Asia ) are parking their money in real estates .

 

[JohnT]

I live in a town that has 40 working farms and a school system that is the shining pride of the state. I know the area is desirable, but am put off by the number of "McMansions" that have gone up.

These monster homes are crammed on 1/2 acre lots and retail well over a million.

I kept wondering just HOW people can afford homes like this, until a friend of mine explained it to me.

When a corporation relocates an executive, there is usually a bonus or some sort of compensation involved. This makes these McMansions affordable.

I also notice that these McMansions seem to always come up for sale. Apparently, this is because a relocation might be only for a two or five year period and the house is sold when their relocation ends.

Food for thought...