“Sigh. Another weekend, another family gathering. Another evening of hearing the same robophrases “Why haven’t you bought yet? You should buy!”; “You’re throwing your money away by renting.” It really reminds me of when I hung out with a group of evangelicals.”

pricedoutfornow at vancouvercondo.info December 3rd, 2010 at 10:29 pm“Sigh. Another weekend, another family gathering. Another evening of hearing “Why haven’t you bought yet? You should buy!” When I try to argue that it would cost me $1000 more to buy this same place rather than rent, I just get blank looks and the same robophrases “But you’re throwing your money away by renting.” and “But real estate always goes up.” It sure is tiresome. It really reminds me of my high school days in the Okanagan when I hung out with a group of evangelicals. They were convinced I was going to hell since I was a non-believer (or rather, I just questioned things intensely). Now I guess I will be sentenced to the hell of renting for the rest of my life. I am doomed. (But hey at least I save $1000 a month and can take vacations every year, unlike some homeowners I know!) huh. Some hell. I’ll take it!”
and, after the event, on December 4th, 2010 at 7:25 pm“I told my (future) sister-in-law last night that it would cost me more than $1000 a month more to buy this place than what I’m currently paying in rent. I asked her where I’m supposed to come up with an extra $1000 a month (which is not really the point, since I’m actually putting $1000 a month into a savings account). But being the brilliant person that she is, told me that I don’t have to, then spouted some nonsense about low mortgage rates. And then what happens when rates go up to 7% when I go to renew? She said I should probably just go find a better job (ya right, like it’s so easy!). Then she said disdainfully, “But you’re renting” like, EWWWW!!!! Funny how she walked around the place unimpressed because it’s a “rental” but if I’d lied and told her I’d bought I’m sure she’d be gushing over the gas fireplace and stainless steel appliances.
People are dumb.”

6 responses to ““Sigh. Another weekend, another family gathering. Another evening of hearing the same robophrases “Why haven’t you bought yet? You should buy!”; “You’re throwing your money away by renting.” It really reminds me of when I hung out with a group of evangelicals.”

  1. pricedoutfornow

    And as I commented a bit later down the post, the sad thing is she and her husband own a condo in Whistler for “investment” purchases (used very little for personal). They lose $10k per year on it. But for some reason, because it’s gone up in value (actually MLS shows similar units selling for $25k-50k more than what they paid in 2002, a decline from pre-Olympics) she actually has this delusion that they’re doing really well, simply because they “own” this condo. It doesn’t seem to matter that after 20 years of paying the mortgage, they will have thrown 200k into this “investment”!!!! The only thing that seems to matter is that she’s got her name on the title (though no money in the bank). And I’m a loser because the only place my name shows up is the rental agreement. Ignorance runs deep in this city, real estate is the new religion.

    • Thanks for the additional information.

    • If most people could do math they’d realize that. But it seems Math is one of those areas that the “World Class” Canadian Education System has failed entire generations.

      Almost a decade ago even people could not quite fanthom that one had to account not only for the mortgage payment but also for the Condo fees, repairs, taxes etc. Even 8 years ago I was told by people by renting the Condo instead of buying it I was losing money as “what you pay for rent you could get a mortgage instead”. When I asked them where I could get a $250K mortgage for $500 a month they told me I am doing it wrong.

      Yeah, that will be a very rough landing unless the economy really takes off soon.

  2. I remember distinctly in early 2000, my realtor friend mentioning how it seemed everybody was talking about stocks and how people were fully invested in the market. The Nasdaq was around 5000 back then. It cratered to under 1250 by the fall of 2002. History repeats itself. There is no new paradigm. The only lessons the masses seem to learn are the tough ones.

    • pricedoutfornow

      I remember those days…the dotcom days, when the “experts” were on TV telling us all to “buybuybuy!” that it was a New Economy. The good thing about that bubble was that it popped quickly and we all got to say “I told you so” to those who fell for the scam.
      The bad thing about this bubble is that it involves houses, something many aspire to own, and that it’s taken so freakin’ long to pop. It will be much, much worse this time around because 70% of Canadians “own” homes, financed with huge mortgages. A much smaller percentage of the population owned dotcom stocks, and I’m sure debt was not used to such an extent to finance such a purchase.
      Oh well. Maybe this bubble will pop soon and we’ll all look like geniuses. HA.

      • Yes, the one positive thing about the dot com bubble is it really was contained. Real estate is what usually leads the economy out of recession, so by blowing a massive bubble in real estate, complete with overhang, we get the double wammy of losing that inflated sector of the economy (1/5 of Canada’s economy) right when it is supposed to kick in to help pull thing up.

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