“Essentially, we either buy now or we never do. “

This anecdote, purloined from Garth Turner’s ‘GreaterFool’ blog post (22.Sep.2009) has a ‘Top of the Bubble’ ring to it –

My wife and I, in our mid-40s, have never bought real estate, as a result of either being in the wrong place at the wrong time (essentially moving to insanely expensive areas where we were pretty much priced out from the moment we arrived–we lived in Silicon Valley during the boom, for instance), or being naïvely bearish on real estate (when we moved back to Vancouver in 1999 I was convinced the dot com bust was the beginning of a disastrous period for real estate, never mind everything else). If we bought today, we’d be over 70 by the time a 25-year mortgage was paid off. We have about $200K to put down, and a household income about double the Vancouver median. The bank will rent us far more money than we would dare spend, but a property around about $700K would result in payments a little shy of 50% of net income, which is significantly less than other Vancouverites are paying. Yes, I know there’s a possibility that we’d lose the downpayment in the first couple of years if prices turn around. But any formerly rational person would, at this point, have to admit that in this city there’s starting to be a very strong possibility that we wouldn’t, and they won’t. Talk of “new paradigms” and “it’s different here” begin not to sound quite so insane, because there’s really no other solid explanation offered, except maybe grow-ops, which I don’t buy. Yes, I know fundamentals are out of whack. But they have been for ages. Renting, at our age, has moved past tired to exasperating. Essentially, we either buy now or we never do. Don’t try to tell me that prices will fall 40% after the stupid Olympics; I’m no longer buying it. 5%? Yeah, maybe.

One response to ““Essentially, we either buy now or we never do. “

  1. hope this poor soul bought – he was bang on about post olympic prices

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