The real estate in Calgary is out of control. There is no one around here that is going to tell you that the house across the street from mine that is probably 1000 sq ft, is very run down but in a prime location is worth $400,000. Someone will buy it, but no one will tell you that it is actually worth that. Money is relative to everything around it.
When I first moved here there was a block of condo's that were selling around the $100,00 mark. They were newly renovated and very nice - but very small. At that time we hadn't looked at anything else and there was no way that we thought you should buy something so small for that much. Especially when we were fresh from Regina and you could buy a house for that. Today, those people are reselling those itsy bitsy condos for at least $200,000.
To make matters worse, there is a row house that went up for sale really close to us. It looks beautiful. I called to get the details, just for fun. It is huge, 2 bedrooms up, 1 or 2 down, 3 bathrooms, a 2 car garage etc. It is selling for $385,000. Logan and I both responded to that unimaginable price with "that's not bad"! It is all relative!
(Just for the record $385,000 divided by 20 years of monthly payments (not including any of the huge interest) is well over $1400 a month. The house across the street that is much smaller and dingyer is renting for $1400 a month!)
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