Buyers for single family homes
The average household income for metro Vancouver at around $65,000, will only carry a mortgage around $325,000 mortgage at 3.55% rate and 25 years amortization. By stretching the repayment to 35 years, the mortgage a bank can approved is just around $392,000. At current average detached home price around $875,000, a home buyer will have to provide over $500,000 to afford such a home.
The question is, who are these buyers? There are three groups of buyers who have the money to make the purchases. The first group is consisted of trade-up buyers who own their homes for many years, and had substantial home equity to move up the home onership ladder.
The second group is consisted of professionals who may be making double or triple the average houshold income. By virtue of their earnings, this group of home buyers can affrod home mortgages 2 or 3 times higher than the average home buyers.
The third group of home buyers are newly landed immigrants who can access bank financing up to 65% to 70% of their purchase price. The price range that this group of home buyers can buy may range from the low $300,000 to multi-million dollar homes.
The million dollar homes
Those buyers who are buying up the million dollar homes are not the average home buyers. The trade-up buyers may form a small per centage of these buyers, and they may be able to afford homes in the $1.0 to $1.5 million range. A group that make the list of buyers for million dollar homes are home builders who are building and selling homes for a living. A large number of these builders have been involved in the home building business for 10 to 20 years or more.
At the top end of the list of home buyers, these are mainly business people whose make their money in Canada, or from their home countries. Most may still maintain their business tie, and or continue to have their businesses overseas. Rich immigrants are known to be buying up the most exclusive properties in the U.S., Australia, New Zealand, U.K and Canada. In metro Vancouver, the favourite neighborhoods where multi-million dollar homes are bought by this group of buyers are concentrated in West Vancouver and Vancouver westside.
Homes for the super rich buyers in Vancouver westside can be viewed below:
Homes between $3.0 to $3.9 million
Homes above $3.95 million.
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