jesse, the blogger who provides data regarding the Vancouver RE market at his invaluable blog, ‘Housing Analysis’, presented 4 anecdotes in a comment at VREAA 23 Mar 2010. They will each be headlined. As he says, they have in common low interest rates. -vreaa
“Real estate agent and wife bought townhouse in PoCo in late 2007. 2008 came and he started hurting for business. Had to take up other jobs to afford the mortgage and had parental support some months. 2009 came and things were A-OK again. He made close to 6 figures income last year and paid down the mortgage in lump sum by a couple of $10Ks. 2008 scared the crap out of him and, even though he is optimistic, he was uncomfortable how exposed he was near the end of 2008 and is unwilling to go through the same agony again.”
Its always odd when realtors over extend themselves on housing. I guess they figure they know more than most and can spot a deal when it comes along.
But when they put all of their “investment” money into real estate I dont see how they think this is a safe bet. If the market tanks not only do they lose on the price of the home(s), but their income will also drop which makes covering the payments very difficult.