“We sold our big, two story, 4 bed Kelowna home. We made a profit of only $30K after selling for $100,000 lower than its highest appraisal value just before the 2008 drop. Unfortunately we [had] refinanced and spent the equity on, you guessed it RE!!!
We moved closer to Vancouver not by choice, but for job transfer. We are renting a house for $1900/mth. My husband hates it and feels we are throwing money away!! If we were getting this place cheap, then perhaps it would be ok and we could sock away the savings!!!
We know there will be a market correction, but we are still looking to buy something in the $500,000 range-rancher or something that will be marketable in future! We only have 10% down, but payments will be less than $1900/mth. We have to borrow the 10% down from family (good rate/pymt plan) since we declared bankruptcy last year. Long story but got caught in the real estate speculation hype and lost everything! Well not everything, we have a condo in Kelowna we can’t sell, but at least it is rented!! Mtg is $312K, prop value $300K. Cash flow is negative marginally. We also lent money from our home equity during the boom, when we refinanced. They have defaulted and have not paid us back. We hold a 2nd mtg on their property in St Catharine’s which is not worth much now!!!
Does it make sense to buy? We hope to be here 5 yrs. We are in Langley where we feel any correction would be much lower than in the city. We would be happy to break even and at least enjoy our own place for a bit. We have kids that would like a place to call home!!”
- Sarah’s story, as told by e-mail to Garth Turner and featured at greaterfool.ca 11 Dec 2011
Stop them before they borrow again!
Shouldn’t these guys by now have signed a “keep me out of the casino” voluntary exclusion request?
Just to read the story is difficult and exhausting; the living of it must be mind-blowingly hectic.
Remember when people would buy or rent, and then get on with their lives?
Speculative manias offer people fertile terrain in which to screw themselves up.