“I ran by the bank to get my closing costs for cleaning up the mortgage. The payout is 415ish with the 5k penalty. So over 7 years we have paid approx $250K in payments and took a whopping $80K off the principle. LOL.. Now to be honest I did know how it works and I knew at the outset how the math works but to actually be reminded of it really made this whole process hit home.”
- Sean in Vancouver, as quoted by Garth Turner, at greaterfool.ca, 28 Oct 2011
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Latest Anecdotes:
- Basement Suite In East Vancouver Sells For $590K
- “A lawyer knocked on the door of my rented house on the Westside of Vancouver this afternoon, and offered me $2.4M. He was going door to door asking if anyone wanted to sell.”
- UBC Condo Selling Pressure?
- Sticky Price Seller Shoots Self In Foot, Slowly – “$488K, listed for 13 months, negative cash flow, unable to come down in price at all due to “circumstances”.”
- Even More Bubble Warnings And Mentions In The Mainstream Media. A Whole Flurry, In Fact.
- West-Side Detached Specifics – “The cycle of buy / tear-down / build / sell is not completing. There are really no sales of new-builds.”
- Vancouver ‘Hotel Condo’ Prices Plummet
- “Crazy Land” – 9% of the working population employed in construction.
- Vancouver’s Too Expensive For Entrepreneurs – “Last night during a meeting we realized that of five, only two of us aren’t thinking about leaving the city in the next year or two.”
- BC Budget: Taxpayer Debt To Support The Construction Industry – “Every young person out there today understands the challenges of getting into the housing market.”
- “Many of my boomer contemporaries think they will “live off the real estate equity” forever.”
- Vancouver – “Where my friends/mom/society/tourists think I live; Where I actually live.”
- Ben Rabidoux, ‘Where We Stand’ – “While it may be too early to call a definitive peak in Vancouver, things aren’t looking good.”
- “I am amazed financial gurus seldom suggest buying a second property. We live in a real estate hot spot. If you buy a house or condo with 25% down and it appreciates by 25%, you have doubled your money.”
- “Comparing Vancouver to NY is about the most preposterous claim I have heard in this lifetime and the next.”
- “I know a lady who spent more time haggling over the price of a table and chairs that was on sale at the Brick than she did buying her condo.”
- Discussion with Tom Davidoff – “A huge fraction of near retirement Vancouverites must have 75%+ of their wealth in home equity.”
- Tom Davidoff’s ‘Fantastic, Pragmatic Lecture’ – “Vancouver RE price future is uncertain, with clear downside risk. Prices could, absolutely, fall 50%. But long run growth is easy to envision, and Vancouver will never be cheap.”
- PostCardsFromTheBlastRadius #15 (2012Teaser) – “Oki CourtOrdereds… LookLikeThis…”
- “You’ve Got A Bubble, Canada” Article #47 – Bloomberg – “Canada Housing Poised for ‘Severe’ Drop”
- What happens to vocal housing bulls after a RE bubble pops?
- Kelowna Foreclosures – “Realtor is worried the number of foreclosures will bring the overall market down, hurting anyone who wants to sell their home; now up against something they didn’t see coming.”
- Buy The Dip! – “There’s yet more indication investors are finally getting the break they need to beef up their portfolios, with the B.C. Realtor association confirming a near-8 per cent dip in the value of properties sold during the first month of the year.”
- ‘The Economist’ Poll – “Are Canadian house prices a bubble waiting to burst?”
- “At coffee break today a guy was reading an ad for one of the housing lotteries. We all looked at the choices (a few houses, condo in North Van, or $1.8M cash). Not a single person would take the cash. Most agreed housing would go up.”
- “I’m ecstatic. My boomer parents called today to say they’ve finally sold our long-time house in cow town. Assessed $490k, listed last fall at $560k, no bite; re-listed at $490k last week, sold at $480k.”
- Open House Investigative Reporting – “He said he considered buying this for the lot value, because lot prices are still going up. However, he also said that he noticed many new/newer houses are not selling at all. This confuses him.”
- ‘The Most Overpriced Housing Market In The Developed World’
- Mayor’s ‘Housing Affordability Task Force’ – “Vancouver must be a city where our children can afford to live and raise their families.”
- “The house and lane house were empty and converted into 7 or 8 suites between the two. The owner couldn’t meet me on time as he was showing one of his other six properties.”
- Tsur Sommerville, Time Machine – “Let’s not let the housing market be driven by a wave of cheap and easy-to-access money.”
- Vancouver Realtor Pam Allen – “Since October, it was like someone turned off the tap. It became absolutely dead.”
- “I’m a Realtor and it’s not a buyers market at all. Based on Vancouver’s historic benchmark price chart I would be hitting the sell button asap.”
- “When I asked why the owner is selling, the realtor said the owner “Has too many properties, wants to get rid of some”…”
- “My wife and I could never buy into a life of servitude to a bank. We just aren’t built to borrow money and don’t consider life as a one track job in order to buy a building.”
- Philadelphia Church of God Trumpets: “Falling house prices is an idea that many Canadians laugh at. Americans laughed too before America’s bubble burst.”
- Avoiding Vancouver, Recent Stories
- “She tells me that she isn’t worried because the prices cannot drop below what she paid.”
- Maclean’s Interviews Two Vancouver Realtors – “Remember: in real estate, people who don’t track the short-term ups and downs tend to do great over the long-run.”
- Canadian Business Housing “Crash!” Cover
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I suspect that some people who claim to have made money in real estate never took the interest expenses into account. As long as prices increase 20% a year, they are easy to ignore.
I don’t understand how people can think saving is hard, yet think so lightly of taking on debt. It’s harder to repay debt than to save, especially if your housing costs are higher.
Here’s one (I told this a while back): family bought in 1998 with $250K mortgage. Their mortgage amount today: almost exactly the same, due to refis to fund renovations. Ah but you say that increases the value of the property. No, not really, they end up depreciating the renos, after another 10 years they’re likely back to square 1; the renos treaded water at best. They told me they were taken aback by how hard it was to pay down their mortgage when properly accounting for all the other costs associated with home ownership.
And no they’re not going to sell despite their property appreciating close to 2.5X. Kids in school age, will be there for at least another 20 years.
“They told me they were taken aback by how hard it was to pay down their mortgage when properly accounting for all the other costs …”
http://tinyurl.com/5t68mh8
You can rent a place, or you can rent money for a place.
what did Sean do with the place? signed a new mortgage at lower rate? disposed it? Did Sean fail to disclose how much he pocketted from the proceed of sales, or Garth omitted to report the rest of the post?
with $2k a month in interest expense, how much did that contribute to his own living quarter? how much rent did he collect?
Good work missing the point of the article.
y you ask so many stooped questions?
I know a guy who bought a house in 1988 for $85,000 and today owes $250,000 in refi’s and the dumb thing is he has no top quality vehicles or other toys to show for it and he is a well paid electrician for all that time. People have good intentions to pay off the mortgage but most just become slaves to the bankers. His house is also in need of major update which makes it even more unbelievable. He’s made paper profit on the house but being in a shaky marriage he may wind up with diddly squat in the end.
right, you have to be out of your mind to buy a house if you need to take out a mortgage. Fools gold
the ther there isnt such a sto stooped ques quest question. the only sto stooped minds always jum jump in a pi piece of toi toilet anecdote and com comment on it without ques question asked.
So we now have fred/Fred (different icons)? Are you telling me the creative well has run dry already and you’re now resorting to playing with capitalization?
“you’re now resorting to playing with capitalization?”
fred is playing with capitalization. Quite.