Very well said, that is the argument against high valued real estate in relatively modest income large cities such as Toronto. With low or no disposable income other sectors of economy are getting affected. I would also argue another reason for high prices are the greenbelt laws, by which government has effectively restricted land available for development.
Most of the people I know who have bought real estate recently are scraping by and using their basement apartments as mortgage helpers. Another issue I have noticed is the lax standards in issuing mortgages, there are companies writing employment letters for $1-2k in order for couples to qualify for mortgages. Banks and government is wising up but the damage has already been done.
Most of the people I know who have bought real estate recently are scraping by and using their basement apartments as mortgage helpers. Another issue I have noticed is the lax standards in issuing mortgages, there are companies writing employment letters for $1-2k in order for couples to qualify for mortgages. Banks and government is wising up but the damage has already been done.