Up until now, local speculators have been bailed out by the Vancouver RE market, and many have looked like geniuses within their families & social circles. With the bust the reverse will be true, and failing speculators will have to deal with substantial financial and social consequences. -vreaa
pricedoutfornow at vancouvercondoinfo.com 9 Aug 2010 10:38am -
“This really must be the end of the market. I am starting to hear sad stories of real estate investment gone wrong in my circle. I visited an old friend on the weekend, things seemed unusually tense in her household. Later on, after her husband and their flock of children had gone, she tearfully confessed to me that her husband, with her express objections, had gone a few years ago and signed up to buy two of those Olympic condos, with a buddy of his. Guess what…now they are on the market and NOT SELLING and now the first mortgage payment is coming due. Her husband’s share is $2600 a month and she’s wondering where the hell they will get the money (they are a single-income household). She’s frantically searching for a job, and seething in anger at her husband. She said she told him NOT to buy in, but I guess he got greedy,since they had flipped a condo a few years ago and made $25k. I was absolutely stunned at her revelation because they had always been the epitome of financial stability-this is a couple who, with a whole flock of children, had paid off their mortgage on their principal residence in less than 15 years. Now it looks like they could lose a lot (and retirement is supposed to be 10 years away). I’m shocked at how investing in real estate seems to have become an addiction in our society and once there are no gains, people you don’t expect could end up being financially devastated.”
Ouch that is a nasty story, worst part is that one wasn’t enough and they are splitting the costs on 2 condos. To this day I have wondered if there has ever been a follow up story on… I buy 3, and my husband buys 3…. as in what has happened to them today? did they get out? or are they saddle and now screwed?
That famous lady and her husband must have gotten out. If I remember correctly that clip was from 2003-2004. Holding 6 condos for 7 years would be quite a feat for anyone.
I buy 3 thee and my husband gonna buy thee.
10 years from retirement, so that should put them at around 55 yo. For a couple who is the epitome of financial stability, they should have a few dollars saved up. The purchase hurts, and it was a stupid move, but I’m guessing that they’re not devestated.
Stands to reason though, that any one of us who think that we manage our finances well could get caught up in greed at some point in our lifetimes.
It’s not all the much different here in Minnesota… a really popular business model is to buy from the banks, fix up, and then place section 8 tenants. So many people are getting crushed by the heavy hand of economics that not only are they losing their homes, but now have no other choice but to resort to section 8 because they’re unemployed and would otherwise be out on the streets.