Wonderful anecdotes of RE excess and greed from Anonymous (at Vancouver Condo Info June 21st 2008 at 8:11am) :
“#1) A self-proclaimed ‘flipper’ has been trying to flog a SFH in Pt. Moody for the last six months. He finally took it off the market 3 weeks ago. He made no price reductions cause he can’t afford to; he ‘owns’ a BMW M3, a Harley and a ‘08 f150, and he was working on his taxes at work and he had borrowed extensively from his RRSP to just maintain his ‘lifestyle’. When I asked him if his house had sold he replied that he was taking it off for a couple of months and he’s going to put it back on when the Market ‘heats up’ again. In the meantime, he is trying to rent it out because he kicked out the previous tenants to do some renos before selling. No luck there either; few calls, and very little interest.
#2) Two guys I work with bought an older townhouse together in North Burnaby for a quick flip. They felt that it was underpriced and with a few quick reno’s and some sweat equity, they could turn it over for a tidy profit. After a kitchen and bathroom reno, they put the POS on the market for 60,000 more than they paid. Open house after open house the thing just sat. They took it off the market, and decided to do a major gutting of the rest of the place, and then rent it until things heat up again. They are a little worried because the strata is one unit away from reaching the rental limit. They are just hoping that they can get the reno finished before someone else in the complex decides to convert their place to a rental.
#3) Another dude sold his house in Pt.Moody, just up the Hill off the Barnet for the High 900’s. They bought a lot in Coquitlam and are in the midst of building a new hoouse, which will be worth 1.3 million (his estimate). The builder is building a spec home beside their lot, which he plans to sell. The guy I work with is watching that closely as he wants to buy a Porsche 911 with a HELOC ( if the house sells for significantly higher than his estimate of his home’s worth, then, by extension, his home is worth a lot more money and he can afford the car). Well, the other house is sitting. Interestingly, this guy and I were talking with a consultant that we use from Santa Barbara. He bought his house for 1.2 million two years ago, and it overlooks the pacific and is just gorgeous. When my workmate heard that, I think he started to understand how f’ed up things are when homes in Coquitlam are more expensive than homes in Santa Barbara! “