In today’s news, irritating me, is this article out of Vancouver HST a Prime Suspect in Home Buying Chill. What are they smoking out there?
Perhaps I can help illuminate this situation for them. HST is the least of the culprits.
- The average house price in Vancouver is a mind blowing $658,000
- The all important first time buyer now has to accumulate a 5% down payment of $32,900 plus lawyer and closing costs. This will take time and most people will have to learn a new skill, saving.
- Wages have not gone up.
HST is only charged on new homes. The slump is not affecting only new homes it is affecting all homes because the people have stopped drinking the Kool-Aid.
The Internet as an Indicator
When you start having websites like Crack Shack or Mansion the public sentiment is rebelling against unreasonable prices.
Then there’s the absolutely hilarious post on Vancouver Real Estate Anecdote Archive about the Froogle Scott Chronicles, this is a story about a poor homeowner who decides to tackle a renovation project in his house.
The very existence of these websites proves the widespread nature of the problem. This issue is so dark and deep and noxious no one even wants to think about it. We’re in a world of ostriches.
I can’t be the only person who thinks that is way too much to pay for a house. Are we all going to be the bank’s indentured servants working endlessly to pay mortgage interest? Who ever thought that was a good plan? Forget Freedom 55 now it’s Freedom 95.
The reason why people have stopped buying houses is because they can’t afford to buy… and even if they could they’d rather not because it just costs too much. Take me for instance, if the only purse available on the market was a Louis Vuitton purse I’d be schlepping my stuff around in a grocery bag WITH PRIDE talking about how crazy people who buy purses are. I don’t have to keep up with the Jones’, because I know the Jones’ have anxiety attacks when they look at their bills. Maybe one day, I’ll even be cool.