jesse1 on RETalks 6 Aug 2010 8:41pm – “A member of my extended family bought recently because he and his wife are expecting their first child. The pressure to buy, for various reasons, was absolutely immense. I looked in awe at the way he was treated by his immediate family. He caved and paid current prices because the alternative of constant harassing would have driven him insane.”
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- kabloona on “The bank encouraged her to take the equity in her home to purchase another home. She bought a 2nd home at the peak.”
- James on “I had a work colleague approach me today to ask about buying a condo in New West. She had no idea about the economics of ownership and real estate.”
- Brian on “The bank encouraged her to take the equity in her home to purchase another home. She bought a 2nd home at the peak.”
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- Nemesis on “The bank encouraged her to take the equity in her home to purchase another home. She bought a 2nd home at the peak.”
- dumpster diver on “The bank encouraged her to take the equity in her home to purchase another home. She bought a 2nd home at the peak.”
- Joe at Kits on “The bank encouraged her to take the equity in her home to purchase another home. She bought a 2nd home at the peak.”
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- Nemesis on “The bank encouraged her to take the equity in her home to purchase another home. She bought a 2nd home at the peak.”
- an observer on “The bank encouraged her to take the equity in her home to purchase another home. She bought a 2nd home at the peak.”
- ex-kitsie on “The bank encouraged her to take the equity in her home to purchase another home. She bought a 2nd home at the peak.”
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Latest Anecdotes:
- “The bank encouraged her to take the equity in her home to purchase another home. She bought a 2nd home at the peak.”
- “Let’s remember how we got here” – Looser and Looser CMHC Limits
- Don’t Worry, I’m Sure Somebody Will Sort This All Out – “Policymakers now know better and will be a lot more proactive in preventing a collapse.”
- “Things have changed, we are not doing that type of mortgage. We are not interested at all.”
- “We are noticing our target type of housing in price decline, albeit slow, as our money increases in value, slowly as well but outpacing housing.”
- Renter Buys In West Van – “For a few hundred more per month, you could own the place. Which is what I will be doing as my offer for a place down the street has been accepted. There is some value in staying in one place.”
- A Bed in the Bathroom, Why Not? [Let Us Count The Reasons...]
- “My husband and kids are pretty happy in our rental house within cycling distance of work that we could never have afforded otherwise. We’re doin’ pretty dang well, thank you, for median income earners in this expensive city.”
- “I Wish Them Bad Luck.” – Jim Flaherty, on those who wish to profit from Canadian RE price drops
- “We asked why he doesn’t just rent the whole house. He said he can’t, it wouldn’t cover his mortgage – he’ll get more to rent it out as two suites. These new landlords are hilarious, thinking that rent will cover their mortgage!”
- “My neighbours, in their late 60s, just put their house on the market. They had said they would die in that house, but now they are worried that with the housing market going south they may be losing a lot of equity and they better sell now before it gets worse.”
- Chat Thread
- Taking A Break
- “My best guess: this property is now an ‘investment hold’ and will be built ‘when prices recover’. Good luck on that!”
- Man Loses $745,000 Vancouver Condo Deposit
- Graphic – Degrees of Housing Overvaluation in Canada
- The Rare Individual With A Negative Ownership Premium
- Advice Regarding Renting In Vancouver, Please – “Unfortunately, the Vancouver rental stock is absolutely atrocious. It just seems like every landlord is looking for someone to pay 100% of their mortgage on a crappy place through rental income.”
- “I just visited Manhattan for a week, and happened to snap some real estate ads on both the Upper West and Upper East sides of the island. Compare to Vancouver. It simply doesn’t compute.”
- Ben Rabidoux In Vancouver Next Week
- “The mortgage company told me they were calling in my 40-year, 0-down mortgage. I have paid nearly sixty thousand dollars towards it, but, nearly five years in, I have yet to touch the principal.”
- ‘Vancouver City Hall: Housing Report Card 2012′; Plus Revised Version
- “My folks find themselves at 65 still owing half the value of their home and recreation property to the bank. After almost 30 years of ownership in the BPOE and a number of boom markets, they have very little to show for it.”
- “Rent for $2,200 a month or buy and have a mortgage of $4,310 per month. Why would anyone buy?”
- “They were talking about two couples they knew who had recently bought a lot and planned to each build a house on it and live as neighbours.”
- Greater Vancouver Home Builders’ Association Annual First-Time Buyer Seminar Attendance Plummets
- Mom and Pop Get It Wrong In All Markets, Time And Again
- The average British Columbian homeowner is not going to pay off their mortgage by the time they retire.
- “He’s sold all his properties except his current one, which is now for sale. He explained that the market’s currently in crash mode, worst that he’s ever seen.”
- “One of my old high school buddies finally got her mother to sell the family home in Kitsilano – sold for over $1M, monies realized after debt paid off $185K.”
- “I know someone who just declared bankruptcy because her condo was assessed at $150k and she bought it presale north of $250k in 2005 or 2006.”
- Sturdy, With Views – “Calling Froogle Scott!… Is Dr. Scott ‘In The House’?” [Not In This One, Certainly]
- “She said the market was dead in Victoria and that it would remain so for a very long time. I asked how she knew. Her answer was fascinating and should scare the pants off the real estate crowd.”
- Kits Notes – “I’m pretty sure that this is the first 3+ bedroom property of any type that I’ve seen in the 5 years I’ve lived here that is priced below $700K.”
- “A beautiful Belfast home, in the equivalent of 1st Shaughnessy, bought at their RE peak in 2007 for £3.5 million, has now sold for £800K, almost 80%-off. The market didn’t suffer any significant economic shocks. Rates & unemployment didn’t skyrocket. They didn’t build more land. Sentiment just changed and the prices fell and fell.”
- “Two family members of hers are trapped, underwater, in condos on the East Side.”
- “Interprovincial migration is not saying good things about BC’s economy.”
- Vancouver RE: Not As Expensive Provided You Don’t Think – “It’s clear that our perception of affordability has been coloured by living on a continent where housing is unusually inexpensive.”
- More Undisclosed RE Industry Insiders Publicized As Clients – “In 1995, Allan and Karin Hoegg were mortgage-free. But no more. Today their Vancouver home is a valuable source of income as they plan for full retirement.”
- Rumor that some OV units will be reduced by 20%.
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And if it crashes now he’ll be remembered as the gutless sucker idiot.
Families should let peoole make up their own minds about such things. Who wants the guilt of knowing that you badgered your adult children into poverty.
There are a couple of friends of mine that I would like to badger into selling because they are way over extended and will be in hot water if prices drop. I keep my gob shut however because if I’m wrong I don’t want to spend the rest of my life listening to “you told us to sell and now we’re priced out forever!”
It’s funny, but it is completely the opposite story in my family. My cousin just bought…everyone in the family warned her not to…I don’t think they will have any trouble making their payment even when rates return to normal because they didn’t borrow too much and they did put down 25%. I do think they are going to lose their 25% though. But hey, they are happy…they have a place that they will own eventually.
This comment stemmed from a conversation on RET and I realised, after hearing some other perspectives, it’s not always so easy to “avoid” paying high prices.
We can pass judgment on people with young families who buy but often it’s not just about “you” when kids are involved. The extended family can cause life to be uncomfortable for many. I think some of us come from backgrounds where individuality has precedence but this is not the case with others, or at least the social pressure deems that non-conformance can have severe consequences.
I guess all’s I’m stating is it’s not necessarily the person who buys who is to blame. They may have traded off more risks that isn’t obvious on the surface.
We’re all speculators now.
Couple in their fifties have two condos, one in spectrum the other just completed in building beside art gallery. Looking to retire to HK soon so both places put up for sale to fund buying property there. Mortgage on one place, the other paid off. New place 600 sqft listed at $420k or something. Rejected offer in May and now no bites. They will lose money if they drop the price more and this is assuming they can get full G/HST credit for it (which is no guarantee).
Now they are worried that they will have to keep working if they can’t sell at least one of the places. Why? They already bought a place in HK with mortgage assuming they could sell at least one of the places in Vancouver. If they sell one they can at least get out with break even cash flow if they rent the remaining unit to fund mortgage in HK.
Bottom line: their retirement depends on prices staying flat. Any fall will force their early retirement plans to the sidelines. This couple wasnuying and selling real estate all the way up the past 10 years, making 100s of k net fees. They know little else in terms of investing other than ING which is pretty much not more than a holding pen for a future property purchase.
I didn’t think people like this existed, putting so much into one asset class and hoping for Freedom 55. But now I met them I know how bad this is going to get.
We’re all speculators now.
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