‘Bob’ wrote: ↑Thu Jan 20, 2022 9:05 am
altiplano wrote: ↑Wed Jan 19, 2022 11:06 am
The thing is they don't include minor things - like HOUSING & ENERGY. Probably average people's single largest expenses. Add that in and we are probably pushing double digits.
Did your housing expenses increase by 4.8% this year? Mine didn’t. Mine actually decreased thanks to the feds.
For those who bought this year or found themselves suddenly homeless from landlords sale or renovictions staring down increased mortgages or rentals…. or those who have energy intensive lifestyles (I have a high efficiency furnace and wood heat, a small car and a short commute), I’d bet the figure is closer to 25%.
Point is it’s an average. Part of the reason for high home prices is very low supply meaning most homeowners are immune to the market. Unless they were stupid and sold thinking they were going to make money only to try and stay in the market with a subject to offer that’s round binned immediately.
My mortgage stayed the same because I'm on a fixed rate/term, but when the mortgage renews it will be up as interest rates rise.
But that's only one cost...
Upkeep and repairs increased substantially.
Utilities rates increased substantially.
Insurance rates increased substantially.
Property taxes increased substantially.
Roughly 6 in 10 Canadian families own their principle residence. So there are still many people exposed to the rental market and it's corresponding rises, or trying to buy into a rapidly inflating market.
To say: "I'm a homeowner, not my problem" is arrogant and ignorant.
This is a problem that affects our whole society, even if we own our little slice of paradise, there will still be eventual broader repercussions.
That said, I've got several properties in the least affordable markets on the continent... It's good my net worth now, but I have larger concerns on the issue of sustainable market growth.