Comments on: Vancouver’s Fish Story http://www.yattermatters.com/real-estate/vancouvers-fish-story/ Insight on Vancouver Real Estate Fri, 30 Jul 2010 00:56:13 +0000 hourly 1 http://wordpress.org/?v=abc By: Mike http://www.yattermatters.com/real-estate/vancouvers-fish-story/comment-page-1/#comment-15113 Mike Mon, 13 Jul 2009 20:04:56 +0000 http://www.yattermatters.com/?p=5472#comment-15113 What I have always found puzzling about the "affordability" numbers is that they use pretax income. Let's assume that you need to have a family income of $200,000 to buy a house on the west side. At $200,000 you are in a tax rate of over 30% (if it's split, if it's not, it's more). If it costs 65% of pre-tax income, isn't that nearly the same as 95% of after-tax? What I have always found puzzling about the “affordability” numbers is that they use pretax income.

Let’s assume that you need to have a family income of $200,000 to buy a house on the west side. At $200,000 you are in a tax rate of over 30% (if it’s split, if it’s not, it’s more). If it costs 65% of pre-tax income, isn’t that nearly the same as 95% of after-tax?

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