“The denial can be pretty funny. At coffee break today a guy was reading the paper and saw an ad for one of the housing lotteries. We all looked at the choices (a few houses, condo in North Van or $1.8 mill cash) and said what we would take. I generally stayed out of it, but not a single person would take the cash. Most agreed housing would go up and it’s better to just take a home and sell later. One guy had been keeping up with the news a bit more and said some places are actually down a little bit. Condos are starting to fall, but he didn’t think the houses would fall in value much, and didn’t go as far as to say he would take the cash.”
- davers at VREAA 14 Feb 2012 11:23am
From the lottery website:
“Now with 5 Super Grand Prize Choices! Choose from the majestic Cape Cod Style Beach Home package in White Rock – worth over $2.2 Million; or enjoy the beautiful Vancouver Skyline from our $2.1 Million+ grand prize package at Atrium at the Pier in North Vancouver. For those who enjoy the Island Life, you might choose the Circle at Swallows Landing grand prize package – worth over $2 Million. Our Craftsman-style grand prize home in South Surrey is a gorgeous family home, and that package is also worth over $2 Million! Or you can choose to just be rich – with a $1.8 Million Cash option. 5 Super reasons to buy a BC Children’s Hospital Choices Lottery ticket! Winner will choose one prize option; the other prize options will not be awarded.”
“Own RE in Vancouver, or Just Be Rich!” (Interesting. Lotteries aside, that reflects the choice for many owners, and prospective owners, alike!)
When the price descent is firmly established (10%-15% off and beyond), everybody fantasizing about wins in these lotteries will ‘take the money’, even when that is clearly the worse deal.
At the bottom, there won’t be housing lotteries. The idea of RE will so repulse people that you won’t be able to use it as a lure to raise money.