Saturday, 13 February 2010

Real Estate Insanity

The one advantage of purchasing a cookie-cutter model from a builder is that there are a lot of them on the market. In my neighbourhood I can easily track my current home value by watching resale values of the same model.

In 2000, we purchased our home for $170,000. Now, its vale is somewhere between $300k - $330k, nearly double after 10 years, even with all the market uncertainty we've gone through.

Over the last 10 years, my salary has gone up appreciably as well. So just for the fun of it, I found a mortgage calculator online and assumed I was a first time buyer entering the market trying to buy the exact same home we have now.

According to the calculator, we can't afford to buy the house we live in now.

So even though my career has progressed remarkably well, my home buying purchasing power has decreased.

I'm sorry, the system we live in is fucked up beyond measure.

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