Happy Bulls

Thompson at RE Talks 15 Sep 2010 12;28 pm“I bought a property in Abbotsford at peak in 1994, price didn’t double until 2006, but so what? Two more year didn’t kill me. If someone bought his property in 1982, it wasn’t the end of world, as long as he can hold it, live with it, $180k house in 1982 is $1m today. If he or she can manage buying two or more properties in all those 30 years, he can still beat [the modest returns of RE bears].”

eyesthebye at RE Talks 16 Sep 2010 11:02 am“I can easily afford the debt with my income – and I’m a lot richer now than when I bought the house [early 2009], 3x as well off to be exact. And so long as the population of GV is growing I’ll be adding more and more equity wealth on the backs of bears’ missed opportunities.”

4 responses to “Happy Bulls

  1. When prices drop by 20% these commenters will be easy to taunt. Bulls have a thin skin from years of rising prices. There’s nothing you can say to a bear to make him angry any more.

  2. That is great for those two bulls.

    But how does that help a young bull nowadays if house prices are so off income they cannot even afford to buy a place in the first place? What were their income to housing cost ratio? I would assume much less then current levels.

    I am a young guy if I was in their situation at that time I would normally be buying a home anyways. Unless they are actively collecting properties I say they are just lucky.

  3. Wandering Antisemite

    >> If someone bought his property in 1982, it wasn’t the end of world […] I can easily afford the debt with my income <<

    That't ts the problem. These guys speak a different language. While there definitely are plenty of well-off guys like that who can weather the bubble burst and wait for 10-20 years, there also are a lot more people who "invested" the last dime of what they never had into RE. I doubt their ability to walk through any financial volatility unscathed.

    It's the different audience this time: have-nots who followed the piper. Not sober decision-makers that 2 examples above seem to have come from.

  4. Ha, I wouldn’t call liesthebye a sober decision maker.
    I’ve been on RET for about 2 years now.
    eyes barely managed to scrape together a 10% d.p., got lucky and bought in the 2008 dip and has a renter in his basement to stay above water.
    A mild correction and his “3X richer” will vanish completely but the debt he signed up for won’t.
    Thompson has been a landlord for a while. I supect he will be able to weather a storm some what better based on his posts but who knows?
    Like W.B. said, “when the tide goes out you see who has been swimming naked.”

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s