Rediculous at vancouvercondo.info 15 Jul 2010 2:08 pm [also headline linked by the Pope at vancouvercondo.info 16 Jul 2010] –
“I was in CIBC today trying to get some money transferred. While the service rep was waiting on the phone to speak to a rep at the bank where I want the funds sent, she took the opportunity to throw in a little hustle.
Her: Make sure you come see me if you need anything – I do it all – banking, mortgages, insurance, investments, everything!
Me: Ok. (with a smirk)
Her: Do you have a Mortgage?
Her: Do you plan to buy a house?
Me: Not for a while, at least a couple years.
Her: You should buy now – interest rates are so low!
Me: Prices are rediculous and a 5 year term on a 35 year amortization would expose me when interest rates go back up. In 5 years, I could be paying 10%!
Her: You know a house is one of the best investments you can buy – values just keep going up!
Me: Since 1890 housing has returned 0.5% after inflation. A diversified stock portfolio has returned 7% after inflation. Housing has been a good investment in Vancouver for the last 10 years, but you can’t really even call it that as since at least 2004, there has been no fundamental indication that there would be reasonable security of principle and a reasonable expectation of return that reflects the risk involved in holding the real estate.
Her:…. starts talking on the phone. Couldn’t tell whether she had gotten through or was just trying to hide behind her phone.
Once she got off the phone, she tried to offer me a higher limit on my LOC, which is secured by nothing. I have 50k in available credit from CIBC with no collateral. I don’t use any of it.
The Banks are still serving up the Koolaid in Costco sized batches and money, for all intents and purposes, is still basically free in Canada. Absolutely boggles my mind. This cannot and will not end well.”