Author Topic: Garth Turner - Real Estate in Canada  (Read 486589 times)

mcliu

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Re: Garth Turner - Real Estate in Canada
« Reply #330 on: February 12, 2015, 01:44:51 PM »
Manhattan's median annual household income is $67K.
Toronto is around $72K.


wisdom

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Re: Garth Turner - Real Estate in Canada
« Reply #331 on: February 12, 2015, 01:46:14 PM »
I think we were comparing great neighbourhoods.

wisdom

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Re: Garth Turner - Real Estate in Canada
« Reply #332 on: February 12, 2015, 01:46:49 PM »
An average house in NY metro is in the $300-400k range.

KCLarkin

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Re: Garth Turner - Real Estate in Canada
« Reply #333 on: February 12, 2015, 01:50:37 PM »
Is the median income in Manhattan and East Harlem the same as the neighbourhood in Toronto?

The median income in my neighborhood is more than 2x East Harlem.

wisdom

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Re: Garth Turner - Real Estate in Canada
« Reply #334 on: February 12, 2015, 01:51:45 PM »
The square foot prices mean nothing unless we have other details - such as local incomes, population, population density, etc.

Tokyo prices are similar to Vancouver - Tokyo has as many people as all of Canada. It doesnt tell me anything useful.

wisdom

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Re: Garth Turner - Real Estate in Canada
« Reply #335 on: February 12, 2015, 01:52:25 PM »
Fair enough.

mcliu

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Re: Garth Turner - Real Estate in Canada
« Reply #336 on: February 12, 2015, 01:55:16 PM »
An average house in NY metro is in the $300-400k range.

Don't want to hijack this thread, but the median household income for NYC is ~$55K..

No one seems to address the fact that the numbers show that the cost to service debt has gotten significantly cheaper today in Canada than it was 10 years ago. And it's continuing to get cheaper to service debt.

I think most media outlets quote that debt-to-income has gone up significantly over the past decade, but they fail to mention that the cost of that debt is actually lower today..

I mean a high debt-to-income ratio really becomes a problem if 1) cost of debt goes up 2) income goes down.

wisdom

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Re: Garth Turner - Real Estate in Canada
« Reply #337 on: February 12, 2015, 01:56:53 PM »
Job losses due to an economy dependent on a few industries.

KCLarkin

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Re: Garth Turner - Real Estate in Canada
« Reply #338 on: February 12, 2015, 02:05:31 PM »
Mortgage affordability index from CMHC.

wisdom

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Re: Garth Turner - Real Estate in Canada
« Reply #339 on: February 12, 2015, 02:13:38 PM »
The rates could stay low for the next 40 years, but, if they do normalize - this may apply.

http://www.rbc.com/newsroom/_assets-custom/pdf/20141126-HA.pdf

EDIT: It is an individuals choice whether to put their capital at risk based on the data available. Some may see this data as proving that prices will increase and others may come to a different conclusion.