Look at me: If I can buy a first home ,you can, too

The housing affordability challenge throughout Metro Vancouver, and the plight of first-time homebuyers in particular, had me thinking about the time I bought my first house in 1970.

Ah, the '70s, the Me Decade that had an ethos characterized, in part, by Earth Day, The Partridge Family, the gay rights movement, the Jackson Five, Dryden vs. Tretiak, all-night dancing at discotheques, and rising divorce rates. (The latter two were likely connected.)

I was in my mid 20s when my parents suggested I buy my first house. 'Scuse me, had they completely lost it?

Here I was: single, with six-pack abs, a shiny shirt and flared pants. One-quarter Italian, I cruised the hot spots in a brand new -- and highly financed -- Corvette convertible. No way was I going to mess with that magical, chick-magnet display of testosterone.

My dad -- a kick-butt Birkenhead Brit who worked two full-time jobs for five years in the '50s so he could adequately house and feed his young family -- threatened to slap me upside the head, then told me I was a bloody fool if I didn't give serious thought to my future.

Dad, as usual, was convincing: owning a home, instead of renting an apartment, made perfect sense. So, I sold the Corvette for more than I paid for it, drained my meagre savings, then purchased a three-bedroom, one-bathroom, brick bungalow for $36,000. I was earning a whopping $160 a week.

The financial reality of the '70s included the term "stagflation" -- the steady increase of inflation and unemployment, which led to unprecedented interest rate levels. Later -- I don't recall the year -- my mortgage rose to nearly 22 per cent, a painful eye-poke for many struggling homeowners.

Chained to a crippling mortgage obligation and relegated to driving an aging two-door Geezermobile sedan, I seldom ventured out to nice restaurants or big-ticket entertainment events. Vacations were spent mowing the lawn and sitting on the porch, waving to my similarly homebound neighbours.

Was buying that first home at such an early, carefree age a sound investment? You bet! The decision was well worth manoeuvring through the early sacrifices. Looking back, that first tenuous step onto the property ladder led to significant tax-free equity gains on successive home purchases.

Today, first-time buyers face more challenges, but they also have more opportunities and choice.

Due largely to high costs related to a scarcity of developable land and skilled labour, as well as the GST, property transfer tax, regional levies, municipal development charges and red tape, this region's new home prices are high. And, of course, the cost of building new homes boosts the value of existing homes.

I didn't consider anything other than a single-family home when I purchased. That's what mom and dad owned; that's what I wanted.

The dream of owning a single-family home will always be there, but the reality is that most first-time buyers today will purchase a townhome or apartment condominium.

Among today's generation of first-time buyers will be those who will live their entire lives in some form of multi-family housing.

The decision will be influenced first by affordability factors, but over time a determination might be made that a townhome, or apartment condominium more appropriately suits their maintenance-free, lock-it-and-leave-it lifestyle.

In fact, emulating the parents is starting to take on new meaning for some first-time buyers.

Mom and dad might have raised the kids in a townhome or condo, not a single-family home. A colleague, a 50-something New Yorker, lived in an apartment from birth.

A single-family home was never on his family's radar. He and his wife recently moved to Vancouver and purchased a downtown condo.

There are, however, first-timers who still choose to set their sights on new single-family homes, although they will likely venture farther into the Fraser Valley to find one they can afford.

An astonishing 99.2 per cent of all new single-family homes in Metro Vancouver and the Fraser Valley are priced above $350,000, by far the highest percentage in Canada.

Densification is the future of the region.

Highrise condo development is no longer the exclusive domain of downtown Vancouver. Towers are piercing the sky everywhere. Development of townhome and apartment condo projects has never been greater. A decade ago, a new detached home was king, comprising 60 per cent of the market. Today the market share has plummeted to 20 per cent.

The average prices of single-family, townhome and apartments in the Fraser Valley last year were $520,000, $322,000 and $217,000 respectively.

Architects, designers, developers, builders and manufacturers have responded superbly to the need to make smaller spaces more livable. They've incorporated everything from open concepts to higher ceilings, to window walls, to compact appliances, to placing greater emphasis on environmentally responsible practices and products.

Baby boomers fared much better financially than their parents. Many own mortgage-free properties with values that have increased significantly over the past few years. They have lots of disposable cash and they don't mind helping their children purchase their first homes.

Most first-time homebuyers, of course, don't have the luxury of families doling out the kind of cash described in these examples.

I have discussed the responsibilities of homeownership with many first-timers and I am impressed by their attitude, knowledge and willingness to sacrifice. They realize there is a price to pay for living here.

Far be it for me preach to intelligent young people, but humour me by allowing a few words of advice to those young men and women who believe they can have it all without consequence.

Shop for a home like you should shop for groceries. Shopping on an empty stomach increases the likelihood of filling the cart with many items you don't need. Do you really need three bedrooms?

Watch your dollars. Progress often can't be achieved without sacrifice. Don't say you can't afford to buy a home when you insist on driving a late-model, high-performance vehicle with all the toys; when you often take resort-type vacations; when you dine out at popular restaurants three or more times a week; when you can't possibly live without a closet full of designer fashions and shoes.

And if you really want to learn about sacrifice, ask your grandparents.

First-timers, your future holds such promise, but it all comes down to choices.

(prepared by Peter Simpson, a Special to WestCoast Homes/Vancouver Sun)