Here’s an individual who is at risk of losing every penny of their investment savings in the coming bust. -vreaa
From Garth Turner at greaterfool.ca 17 Aug 2010 – After I finished a national media interview, I received an email from the reporter. Apparently he lives in Vancouver, a fact I did not know. Said he: “I was going to mention that I bought a house a year ago here in Vancouver. Now I’m frightened… My down payment was about 40% of the purchase price, but still, that’s my investment savings at risk… I hope it’s not too late to sell, if I start to think that way!”
At least the guy had a decent d.p. and can probably ride it out for years if he has to.
What about the people who put 5% down? Most of them are very close to being screwed already or soon will be. They won’t be able to move up, down or out without taking a substantial loss.
Get used to looking at those same walls for a long time and if your income is somehow disrupted, get ready to be walking down the street with nothing.