Vancouver RE Bears are having their faith tested and their feet held to the fire. And some are beginning to doubt themselves. Sign of a market top? This from skiff at vancouvercondo.info September 29th, 2009 at 6:42pm –
“A co-worker just bought a 600sq.ft. apartment downtown for $360k. He is thrilled that his mortgage will only be about $1500/month with a 35yr, 3.7% 5yr fixed. Although he plans to live in it eventually, he hopes to rent it out for a year at $1500/month.
Another co-worker is in the midst of buying an apartment in the suburbs, and it turns out there is a bidding war on the place she likes. She goes to co-worker #1 and asks advice (since he is so experienced), and he says “if you like the place then add $10k to your offer! That’s only, like, $5/month over 35 years! It’s not an investment, but a place to live. And don’t think about the total amount or total interest. You’ll never own it, but in a few years you can sell it and make a bit of money and get a bigger place if you want. Now is the time to buy though!”
I think that pretty much sums up who is buying right now. If you are only concerned with your monthly payment, believe that real estate always goes up overall, and that what’ll happen in five years is so unknowable that it’s not worth worrying about then this market is for you! I’d have spoken up, but since I am the only person at work who still rents and isn’t actively looking to buy nobody wants to hear it. And besides, I’m not so sure anymore either.”