“I was in no situation to buy RE in 2005. Prices here have nowhere to go but down. There is no jealousy, hate or immaturity in this position – just financial discipline.”

Nero at vancouvercondo.info 11 Mar 2010 2:49 pm

“I was in no situation to buy RE in 2005. I was a recent MBA grad and embarking on a career. Since then, my wife and I have accumulated about $100k while saving for a downpayment. Now, if there were any logic in the assumption that the Van RE market (prices) would be steady and increasing (or even flat), I would have bought already. The simple truth is that prices here have nowhere to go but down. The article (and so many others) support the argument with respect to Vancouver. So why should I enter a market that I know is stretched (thanks to a perfect storm of interest rates and psychology) and peaking? There is no jealousy, hate or immaturity in this process – just financial discipline.”

2 responses to ““I was in no situation to buy RE in 2005. Prices here have nowhere to go but down. There is no jealousy, hate or immaturity in this position – just financial discipline.”

  1. Smart…Very Smart! Question? Have you thought about investing in a short-term real estate investment? Maybe you could take your money, using only a small portion of it to buy a home that might need a little fixing up, do the repairs and then resell it for a profit? Just a thought.

  2. jesse3 -> Not Very Smart! What you are describing is a leveraged momentum bet (that will also require sweat equity) in a market that is extremely overheated and, if not at a top, in the vicinity of a top. This is a classic way of getting very badly burnt, of being one of the last fools holding the bucket when everything blows.
    And, BTW, using only a ‘small portion’ of your money to get in doesn’t mean that a ‘large portion’ of it won’t be lost when your leveraged bet goes south.

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