What percentage of your net worth is in Vancouver Real Estate? For many buyers since 2000 that figure remains well over 100%. Even those who have owned for a longer period have a majority of their wealth in their home. The future financial health of Vancouverites is too dependent on RE. -vreaa
“I am a financial planner and sold my house November 2008. At first my wife was reluctant to sell but as the market began to tank she agreed that it was the right thing to do. Now that the market has recovered she is questioning our wisdom of having sold. Our son in law is a realtor and thinks we were crazy to have sold and truly believes that prices will continue to go up. I can not even discuss my views with him that real estate will correct without him laughing at me and calling me a fear monger. Many of my clients have way too much house compared to the size of their retirement portfolio and are relying on their real-estate to fund their retirement. Many also have multiple real-estate properties and plan to purchase additional properties with new money instead of investing in their retirement portfolio. When I talk to them about the real estate being in a bubble they look at me in disbelief. I get paid to give advice, and it troubles me when a significant portion of my client’s assets are subject to a severe correction potentially affecting their retirement, they do not take my advice.”
[This could be a Vancouver anecdote, but not necessarily so, so it is tagged as broadly Canadian unless we hear from its author].