{"id":40324,"date":"2017-12-07T12:45:41","date_gmt":"2017-12-07T19:45:41","guid":{"rendered":"http:\/\/saitjournalism.ca\/?p=40324"},"modified":"2021-02-12T09:17:00","modified_gmt":"2021-02-12T16:17:00","slug":"you-need-to-make-nearly-88000-a-year-to-afford-a-house-website-says","status":"publish","type":"post","link":"https:\/\/saitjournalism.ca\/thepress\/2017\/12\/07\/you-need-to-make-nearly-88000-a-year-to-afford-a-house-website-says\/","title":{"rendered":"You need to make nearly $88,000 a year to afford a house, website says"},"content":{"rendered":"

W<\/span>ith rising home prices, student loans and challenging job prospects, the idea of purchasing seems to be out of reach for many Calgary graduates.<\/span><\/p>\n

Since 2015, house prices have rocketed more than three times faster than wage growth across the country, according to an online article<\/a> by The Globe and Mail. <\/span><\/p>\n

While a typical home in Calgary, one of the country\u2019s five biggest housing markets, sells for approximately $443,744, a study<\/a> by Blue Chip Mortgage and RentSeeker.ca<\/span><\/a> said that to afford a house, one needs to make at least $87,761 per year.<\/span><\/p>\n

\"\"
To Buy or To Rent: <\/strong> A for-sale sign is posted in front of a house in the community of Dalhousie in Calgary on Sunday, Nov. 12, 2017. While a typical home in Calgary, one of the country\u2019s five biggest housing markets, is sold for approximately $443,744, a study by Blue Chip Mortgage and RentSeeker.ca said that to afford a house, one needs to make at least $87,761 per year. (Photo by Linh Hoang\/The Press)<\/figcaption><\/figure>\n

\u201cIt feels like most of us are unable to keep our heads above water. It really seems like it,\u201d said Ron Nguyen, a former student at the University of Alberta.<\/span><\/p>\n

The 24-year-old Nguyen is in a situation that would be familiar to many graduates. He has put off such major purchases because of his student loan repayments.<\/span><\/p>\n

\u201cIt is tough to save enough cash for a down payment, since more than 25 per cent of my monthly income already goes into tuition debts,\u201d said Nguyen.<\/span><\/p>\n

\u201cI don\u2019t even want to think about taking on another debt. It doesn\u2019t make any sense to tie myself down, both emotionally and financially.\u201d<\/span><\/p>\n

Lorraine MacDonald, 22, a last-year college student, said that carrying student loans has also restrained her from buying a house.<\/span><\/p>\n

\u201cHome ownership is something I had never thought about. Because in a year\u2019s time, I will be $28,000 in debt. Where do I go from there?” she said.
\n<\/span><\/p>\n

\u201cI have rented for the past six years, and I will rent until I have my loans paid off and proper savings,\u201d said MacDonald.<\/span><\/p>\n

\u201cIt is better to be safe than sorry, especially when it comes to money.\u201d<\/span><\/p>\n

The student debt burden, however, is not the only reason causing graduates to put off buying their first home.<\/span><\/p>\n

Jose Villela, 21, a former engineering student from the University of Calgary, said that while finding work in the oil and gas field remains exceedingly difficult, and has affected his decision to buy a house.<\/span><\/p>\n

\"\"
To Buy or To Rent: <\/strong>Jose Villela, 21, a graduate student from the University of Calgary, poses for a picture in Calgary on Sunday, Nov. 12, 2017. \u201cWithout having a reliable source of income, to me, renting seems like a better option that involves less money and commitment,\u201d said Villela. (Photo by Linh Hoang\/The Press)<\/figcaption><\/figure>\n

\u201cI rent because having just graduated, I don\u2019t believe that I am in a right position, economically, to think about buying a house,\u201d said Villela.<\/span><\/p>\n

\u201cWithout having a reliable source of income, renting seems like a better option for me that involves less money and commitment.<\/span><\/p>\n

\u201cNot to mention that as an international student, I am uncertain if I want to stay in Calgary for the foreseeable future, which makes me prefer to rent for now.\u201d<\/span><\/p>\n

Vicky Huynh, 27, a recent graduate from SAIT, said that renting has become affordable for her due to the economic downturn.<\/span><\/p>\n

\u201cThere are a lot of houses and apartments for rent with great deals, like a free first-month rent, or a free cable for a 12-month lease,\u201d said Huynh.<\/span><\/p>\n

\u201cI have shared the rent with my sister, so it has been very affordable for us.\u201d <\/span><\/p>\n

Huynh said, as an international student, most of her savings have gone to pay tuition fees.<\/span><\/p>\n

\u201cAs a result, having enough for a down payment right after graduation is almost impossible,\u201d she said.<\/span><\/p>\n

“Eventually, I will start thinking of purchasing a house, when I believe my income is more financially stable,\u201d said Huynh.<\/span><\/p>\n

\u201cBut for now, I am comfortable with renting.\u201d<\/span><\/p>\n

Moshe Milevsky, an associate professor at the Schulich School of Business at York University in Toronto, said in an online article<\/a> on Global News that there are many factors to consider when deciding to rent, or to buy.<\/span><\/p>\n

First-time buyers should think about their five-year plan.<\/span><\/p>\n

“If you’re not sure where your future career is headed, you should consider renting,” said Milevsky.<\/span><\/p>\n

Home buyers should also be aware of “hidden costs” of owning a home, according to Milevsky.<\/span><\/p>\n

“If something needs to be fixed, you will be on the hook for the costs of maintaining a house.\u201d<\/span><\/p>\n

If you’re not sure where your future career is headed, you should consider renting. –\u00a0Moshe Milevsky<\/span><\/p><\/blockquote>\n

Lastly, there are some other closing costs, such as land transfer taxes, appraisal, and home inspection fees, that first-time owners will need to also consider.<\/span><\/p>\n

\u201cIf we don\u2019t plan carefully, buying a house can turn into a financial nightmare,\u201d said Huynh.<\/span><\/p>\n

\u201cMeanwhile, rental prices will likely go higher in the future, so take the time to strategize whenever you are ready to put down roots.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

With rising home prices, outrageous student loans and challenging job prospects, the idea of purchasing a home may seem to be out of reach for many Calgarian graduates. [ READ MORE ]<\/a><\/p>\n<\/div>","protected":false},"author":442,"featured_media":40327,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"image","meta":{"_ef_editorial_meta_text_assignment-slug":"S3 Calgarian graduates choose renting over buying a house after graduation","footnotes":""},"categories":[3],"tags":[],"class_list":{"0":"post-40324","1":"post","2":"type-post","3":"status-publish","4":"format-image","5":"has-post-thumbnail","7":"category-city","8":"post_format-post-format-image"},"_links":{"self":[{"href":"https:\/\/saitjournalism.ca\/thepress\/wp-json\/wp\/v2\/posts\/40324","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/saitjournalism.ca\/thepress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/saitjournalism.ca\/thepress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/saitjournalism.ca\/thepress\/wp-json\/wp\/v2\/users\/442"}],"replies":[{"embeddable":true,"href":"https:\/\/saitjournalism.ca\/thepress\/wp-json\/wp\/v2\/comments?post=40324"}],"version-history":[{"count":14,"href":"https:\/\/saitjournalism.ca\/thepress\/wp-json\/wp\/v2\/posts\/40324\/revisions"}],"predecessor-version":[{"id":41336,"href":"https:\/\/saitjournalism.ca\/thepress\/wp-json\/wp\/v2\/posts\/40324\/revisions\/41336"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/saitjournalism.ca\/thepress\/wp-json\/wp\/v2\/media\/40327"}],"wp:attachment":[{"href":"https:\/\/saitjournalism.ca\/thepress\/wp-json\/wp\/v2\/media?parent=40324"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/saitjournalism.ca\/thepress\/wp-json\/wp\/v2\/categories?post=40324"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/saitjournalism.ca\/thepress\/wp-json\/wp\/v2\/tags?post=40324"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}