Even Sixty Dollars Per Hour Isn't Enough

[W105]

Yes... wild delusional opinions on this board aside, the math is simple.

Median household income in Kelowna is around 70,000. Realistically using the basic rule of thumb, your mortgage payment should be around 1800-1900 maximum. With zero down, that puts your house around 300,000.

Median house price is ~1 million.

Put another way to be looking at that 1 million range, household income should be around 230,000. About twice what the pharmacist is making.

She's making the right choice.

Most owners in Kelowna are either wealthy or are working with legacy family homes and/or homes bought before the wild surges.

The situation is not tenable even for the majority of working or middle-class people who would be new owners. Two professionals on the high end of the income curve could still make it work reasonably - that represents an extremely small percentage of the population.

KGH/IH is having major issues trying to find and hire doctors because the housing market is overpriced even for them.
Most doctors are married with kids with the wife staying at home and earning anywhere from 130,000 - 245,000 a year.

If the housing market is scaring these historically very wealthy people away, what hope does the future population have unless something is done?

My wife and I earn over 130,000$ a year and while we can't afford a house due to wanting to put down 20% (and needing a single-detached house) we'll be fine in the long run as both of our parents bought their homes here in the valley in 1998 for 150,000$ and are now worth well over 700,000$.

^^ it's been like this in Vancouver since 2014-2015 and nobody cared that Doctors and Nurses or anybody in the Health Care profession couldn't afford to live there, so it's gonna be no big whoop here..

the cost of building a house, land and labour went up about $200K per house in the last yr...until that hole gets fixed there will NEVER be affordable housing ( and as affordable I mean 30% of ones income like it used to be) we desperately need a recession and a major reset as this is just unsustainable ..

[Nedroj]

^^^ Yup. But don't expect anything to happen in the way of a reset any time soon. RE went up over 100% across Canada since 2015. Libs want it to go higher and it will gain another 50% by 2025.

Yep that is the sad reality. It is not in the best interests of the government to lower the housing prices.
Just imagine how much more all levels of government are pulling in compared to when homes were under 300k 20 years ago.

And what's even sadder is that even with this drastic increase in funding, they still need to increase our taxes every year.

One would think that just the increased income with the housing sales and the extra taxes collected from that would pay for any increase in services the government would need to expand but alas it never seems enough to them.

This meme seems to pertain to our government more and more every year

[Bigbacardi]

I make around $18 an hour and live just fine. Pharmacists must be expecting to live like kings, or maybe the smoke scared them away.

Hmmmm.
$18/hrx40hrs/week x52weeks a years =$37500/yr
Tax rate of 35%=24K per year take home.
Gross debt ratio at 40%
Allows for $1250 mortgage payment.
That won't buy you a garden shed in ktown....

[alanjh595]

I make around $18 an hour and live just fine. Pharmacists must be expecting to live like kings, or maybe the smoke scared them away.

Hmmmm.
$18/hrx40hrs/week x52weeks a years =$37500/yr
Tax rate of 35%=24K per year take home.
Gross debt ratio at 40%
Allows for $1250 mortgage payment.
That won't buy you a garden shed in ktown....

Barely gets a 1 bdrm apt. rental.

[BC Landlord]

Hmmmm.
$18/hrx40hrs/week x52weeks a years =$37500/yr
Tax rate of 35%=24K per year take home.
Gross debt ratio at 40%
Allows for $1250 mortgage payment.
That won't buy you a garden shed in ktown....

First off, $18/hr is a very low wage (close to min wage). A single person on that wage can still afford 1-bedroom appt. Two min wage salaries can afford more. Want even more? Get a better job.

It's still doable. But you would still need to prioritize things in your life, eg. no $1,500 cell phones with expensive data plans, no travelling every year, no dinning out every day, ... etc.

[alanjh595]

Hmmmm.
$18/hrx40hrs/week x52weeks a years =$37500/yr
Tax rate of 35%=24K per year take home.
Gross debt ratio at 40%
Allows for $1250 mortgage payment.
That won't buy you a garden shed in ktown....

First off, $18/hr is a very low wage (close to min wage). A single person on that wage can still afford 1-bedroom appt. Two min wage salaries can afford more. Want even more? Get a better job.

It's still doable. But you would still need to prioritize things in your life, eg. no $1,500 cell phones with expensive data plans, no travelling every year, no dinning out every day, ... etc.

No car payment
No entertaining
No golf
No car
No insurance
No new clothes
No gas
No big cable package
No Heat or electric bill
One or the other cel or landline.
No skiing
One steak / mth.
No pets

Gawd help you if you have a child.

Pray you don't get sick and miss 2 weeks of work.
If you have KD 3 nights/week, you might be able to afford some gourmet ketchup.

24K/yr take home is $2K / mth.
deduct $1200 /mth mortgage
leaves $800/mth for ALL other costs.

[rookie314]

I make around $18 an hour and live just fine. Pharmacists must be expecting to live like kings, or maybe the smoke scared them away.

Prove it. Nice troll though.

[YzzzR1]

No car payment
No entertaining
No golf
No car
No insurance
No new clothes
No gas
No big cable package
No Heat or electric bill
One or the other cel or landline.
No skiing
One steak / mth.
No pets

Gawd help you if you have a child.

Pray you don't get sick and miss 2 weeks of work.
If you have KD 3 nights/week, you might be able to afford some gourmet ketchup.

24K/yr take home is $2K / mth.
deduct $1200 /mth mortgage
leaves $800/mth for ALL other costs.

Pretty much sounds like the 70s for much of us who were starting out. The more things change, the more they stay the same.

[alanjh595]

No car payment
No entertaining
No golf
No car
No insurance
No new clothes
No gas
No big cable package
No Heat or electric bill
One or the other cel or landline.
No skiing
One steak / mth.
No pets

Gawd help you if you have a child.

Pray you don't get sick and miss 2 weeks of work.
If you have KD 3 nights/week, you might be able to afford some gourmet ketchup.

24K/yr take home is $2K / mth.
deduct $1200 /mth mortgage
leaves $800/mth for ALL other costs.

Pretty much sounds like the 70s for much of us who were starting out. The more things change, the more they stay the same.

In 1975, the actual minimum wage ranged from $2.15 an hour in New Brunswick to $2.75 an hour in British Columbia, with an average of $2.60.

[alanjh595]

1977-1981 Boom Years

So lets talk about the period first of all from 1977 to 1981. In 1977 the average cost of a property in Greater Vancouver for a detached house was approximately $80,000. Four years later in 1980 the average cost of a house had risen to almost $180,000. So if you think some of the things we’ve been seeing here over the last decade are new, the also happened years before. The problem was during that time the economy in both the United States and Canada had massive inflation issues. How to combat inflation is to raise interest rates. By the end of 1981 interest rates had risen to over 20%, and what that did is it caused a crash in the real estate market.

More interesting stuff here
https://jamiehooper.com/vancouver-real- ... 7-to-2018/

[youjustcomplain]

Hmmmm.
$18/hrx40hrs/week x52weeks a years =$37500/yr
Tax rate of 35%=24K per year take home.
Gross debt ratio at 40%
Allows for $1250 mortgage payment.
That won't buy you a garden shed in ktown....

You're not right. Income of $37500 yearly is not 35% tax. It's 25% tax roughly, and there are ways to have deductions on that.

Now, why would you come up with the rest of your numbers based on that misinformation?

[PoplarSoul]

$18/hrx40hrs/week x52weeks a years =$37500/yr
Tax rate of 35%=24K per year take home.

Someone in B.C. making $37,500. per year would be in the first bracket when filing their income tax.
5.06% .. provincial tax
15% .. federal tax
Also adding federal and provincial tax credits, taxes would be roughly $4000. to $4,500. per year.
So take home would be over $30,000. per year.
$33,000. to $33,500. per year take home.
The story stated "We are pretty devastated to lose her. She has a young family and they've been looking for over two years. They've just been forced out of the market at this point," Giesbrecht tells Castanet."
""For somebody making $60 an hour, which is not the case for most people in Kelowna, for people like that to be forced out of the market is just really mind blowing to us."
Hard to believe she couldn't find a home with her salary.

[BC Landlord]

No car payment
No entertaining
No golf
No car
No insurance
No new clothes
No gas
No big cable package
No Heat or electric bill
One or the other cel or landline.
No skiing
One steak / mth.
No pets

More than a half of the above items are luxury things. You don't do golfing, big cable packages, expensive cell plans and have pets on a minimum wage.

[alanjh595]

No car payment
No entertaining
No golf
No car
No insurance
No new clothes
No gas
No big cable package
No Heat or electric bill
One or the other cel or landline.
No skiing
One steak / mth.
No pets

More than a half of the above items are luxury things. You don't do golfing, big cable packages, expensive cell plans and have pets on a minimum wage.

A car with insurance and 1 steak a month are luxury items?

[BC Landlord]

A car with insurance and 1 steak a month are luxury items?

No, ... but that's two out of thirteen items on your wish list above.