Monthly Archives: January 2009

“They’re already crying — They’ll go bankrupt, I think.”

This from concerned father joe2 at RETalks on 2009 Jan 29, 10:15 am -

“My daughter, with her boyfriend, bought a house last year in Prince George for $270,000. They’re already crying, and tried to sell privately but can’t even get a $170,000 offer. They’ll go bankrupt, I think.”

(quote paraphrased by vreaa editor)

“I make $52,000 a year and I own two large townhouses. I bought the last one a year ago.”

Apparently some people haven’t heard the news about the ongoing worldwide RE bust. The CBC reported that people literally lined up to buy condos in Vancouver on the 19th January 2009.

The comments on the article at the CBC website included this one from  ‘johnny’ Posted 2009/01/20 at 3:41 PM ET:

It really annoys me when greedy, lazy people complain about the cost of housing.
Yes, it is expensive!
Vancouver is the #1 place to live in the world.
Prices are not inflated tho. The price that homes sell for is exactly what buyers are willing to pay – and that is always how it will be. If you are not willing to pay those prices, then either give up on wanting to buy, or move somewhere cheaper. The prices will not drop drastically just because you want them to. Vancouver will ALWAYS have lots of foreign investors. That is the way things are here.
I make $52,000 a year and I own two large townhouses. I bought the last one a year ago. I have never been given any money from relatives or won anything. I dont have any special knowledge or opportunities. I simply wanted to buy a home, and made it happen. And then I wanted to buy a second one, and made it happen. Its not about how much money you make, because really, I dont make all that much! Its about your priorities and the decisions you make. If you really want something, go and get it!
Why buy now instead of waiting till “the bottom” has been hit? Well, we never know when the bottom has been hit until its already gone and prices have started to rise. Also, do you realize how many people are waiting for “the bottom”? Once someone declares that the bottom has been hit, the market is going to be flooded with buyers and there will be lots of competition and prices will rise. Right now there is a huge supply of homes and great interest rates, so even if prices do drop a bit more, you still may get a better deal now, just because there is so few buyers.
Even if prices do drop a bit more, unless you are intending on selling in the near future, it wont affect you. Most people are buying a home, not an investment, so even if prices do go down a bit in the short term, that has no affect on the value of your home say 10 years in the future.
If you want a home, and you can afford one, buy one.

“Owner” of 20 Investment Properties Can’t Sleep

This from IC4 at RE Talks on Wed Jan 14, 2009 4:08 am -

“Some of my family members attended (the Real Estate Investment Network) seminars a few years ago and now are up to their necks in debt. Maybe a couple of million in one case, and no idea as to the others. Probably more than that.
One of my siblings “owns” more than 20 investment properties and has a hard time sleeping, worrying about how to keep the places tenanted. Somehow they have always found other investors to help them buy more property. One of the big purchases was a building which needs millions to be refurbished and probably can’t be resold until it is—but my worry is, what if the original co-investors start asking for their money back? If that is the case then I see ruination ahead. And that makes me feel very scared for their sake.”

Sold! (For 10% Below 2006 Price)

This from Thomasina Barnes, in the Globe and Mail, January 9, 2009 at 2:08 PM EST -

  • 428 BEACH CRES., UNIT 2102
  • ASKING PRICE: $1,998,000
  • SELLING PRICE: $1,600,000
  • PREVIOUS SELLING PRICE: $1,780,000 (2006)
  • TAXES: $8,258 (2007)
  • DAYS ON THE MARKET: 162
  • SELLING AGENT: Nicolas Blachette, TRG Realty

“A lot can change in six months. The list price of this 1,713-square-foot suite was reduced twice before its sale. It was originally listed at $2,298,000, then cut to $2,198,000, and finally $1,998,000. It sold for almost $700,000 below the original price — and $180,000 less than the home was purchased for in 2006.”

RE Owner/Speculator Distress

This from Marco911 at RETalks Thu Jan 08, 2009 9:55 pm -

“..It was disturbing to hear an old friend (one who I haven’t spoken with in years) tell me they had contemplated jumping out of the window of the new condo they just took possession of. She’s a wonderful person who has always been a hard working character and got wrapped up into this recent real estate phenomenon. She works two jobs and purchased two pre-sale units in Vancouver with the hope of making some serious money. She’s never been wealthy even though her parents tried to do everything they could for her. I met her in private school growing up. .. She’s a nurse and also works part time at a pub generating a decent amount of income. Very low spender when it comes to luxury items. All her hard work is about to be wiped out. She has worked a few years almost 7 days a week every week. She is trying to sell one unit along with just about everyone else in the building and it’s not going to go. She’s dropped the price past her break even point and even beyond what her deposit was. Still no bites. The other unit which is completing soon is going to have such a huge mortgage, that 2 months will wipe her out. She is unable to sell her contract at a loss.”