“Once you get your mind around the fact you may never buy here it feels really liberating.”

McLovin at vancouvercondo.info 14 Nov 2010 10.01am “I was having a frank conversation with my wife and I told her that we may never own again in Vancouver. This is not to say that we won’t take the savings and put that into investment properties in other places where the numbers make sense. Prices would have to drop 50% here for us to consider buying here and who knows if that is going to happen? Truthfully, I really don’t care, I am living my life and loving it. That being said, once you get your mind around the fact you may never buy here it feels really liberating.
In my opinion the stigma around renting in YVR has started to abate. I no longer get strange looks when I tell people I rent in fact a few say that’s a good idea. This has not been the case for the last four years.”

6 responses to ““Once you get your mind around the fact you may never buy here it feels really liberating.”

  1. “Prices would have to drop 50% here for us to consider buying here and who knows if that is going to happen?”

    It’s not “if”, it’s “when”. Free money can’t suport excessive valuation forever.

  2. I agree with this anecdote!

  3. I have to say I am getting kinda sick of renting. It is worthwhile because we are saving lots of money, but the lack of autonomy in deciding what to do with the property gets old. Want to mount a shelf somewhere? Either check with the landlord and get a long-winded response about why he’d prefer you not (or he provides his own extra-crappy solution) or just do it on the sly and hope he also considers it an improvement after the fact. If we rented high-end, then maybe there would be nothing that needs improving, but we rent something that is roughly what we would buy in a normal market (so we can realize the savings in renting) and there are lots of areas that could be improved in the living area. We pretty much write-off any improvements we make as sunk costs. We’ve managed to negotiate some money back for improvements in the past, but the landlords have always been reluctant, even if it now allows then to increase the rent for the next tenant.
    For now, it’s worth it, but we’ll be moving in less than a year (because we need another bedroom) and I don’t think it’ll be to another rental. Hopefully the market will have corrected somewhat in the meantime.

    I should also add that among my associates at work I am the only one who still rents, despite almost being the oldest, but I’ve never felt the scorn that other people report.

  4. What I find funny is that people are still willing to buy new places and rent them out for a significant loss! I had a friend tell me the other day that he had just sold and was planning on buying a new place. I said something along the lines of, “well, if you’re going to stay somewhere for the long term and you’re prepared for higher interest rates, I guess buying isn’t so bad”. To which he replied something along the lines of “Who cares if its long or short term? Investment in Vancouver real estate is always a good idea. Worst case scenario, I’ll rent the place out if I need to move again”.

    Then I threw up a little in my mouth and changed the subject.

    • Your friend speaks from experience. For most Canadians, real estate is a warm and fuzzy thing. It’s a golden egg. The notion of danger is completely absent. I’m 33, and I’m the only RE bear among my friends. They all bought at the peak. Driving a car at high speed is nice if you’re not aware of the existence of car crashes.

  5. Maybe I’m in bizarro world but almost all my close friends understand prices are too high and most of them understand why to boot.

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