“I’ve been living overseas for 15 years, watching this bubble from afar…”

honest weights at greaterfool.ca 6 Jan 2010 1:09am“I’ve been living overseas for 15 years, watching this bubble from afar. Seeing one brother buy a 1 bathroom house in Ladner for about 1/2 mill and another brother see his North Van house rise from about 400k to about 2 mill (after serious renos).
I would once and a while think about buying a house in the Vancouver area – only because it’s my hometown and to be around family.
But buying at these prices you’d have to be the greatest fool indeed. Sorry Vancouver, but you’re just not worth it.

Trying to create wealth by lowering interest rates is a short term ponzi scheme at best. This equates to printing money. Wouldn’t it be nice if governments could print their way to prosperity? You can’t fool all the people all the time. I don’t wish this on my fellow Canadians but I can smell the reckoning day.”

9 responses to ““I’ve been living overseas for 15 years, watching this bubble from afar…”

  1. so you could not catch up with your brother, you have to hide all the way oversea?

    • Yeah, that’s what it’s come to hasn’t it?
      Our housing market as a battleground for siblings, friends, associates.
      This is bad for our society.

      Nobody is suggesting that housing should be free, or even cheap, but the fact that people are avoiding or leaving Vancouver purely because of housing prices should give pause to even the most ardent bull.

  2. pricedoutfornow

    Yep it’s ridiculous. The only reason people are buying houses these days is because they expect the value to go up forever. Which it won’t. I’ve said it once and I’ll say it again: I know too many people who have too much debt. A couple have already gone bankrupt and some are dangerously close. This won’t end well. There is no magic fairy who’s going to come down and drop money on my struggling family and friends. The bubble collapsed in the US and it will here too.

  3. The Real Estate and Mortgage Finance industry would have us all believe RE will always go up, never go down. It’s time for everyone to see it for what it is: Self-serving Propaganda (aka Lies).

    Alas, most folks accept it without question. People need to wake up to the danger. A painful correction is coming…

  4. I could not stop my sister from buying a place with 5/35 mortgage and getting into a bidding war to get the house in Toronto. I had been giving my sister very detailed financial analysis with data, and my mother finally told me to back off. Now I don’t say anything.

  5. How about avoiding people that have “invested” in real estate. I am so tired of all the idiotic gibberish from bulls. One guy told me that he “owns” 6 condos in Yaletown. All of them have negative cash flow. He is losing thousands of dollars every month, but he will be rich once he sells the condos to a greater “investor” for much more than what he paid. Yeah, right…
    Now when I hear an “investor” talking, I just turn around and walk away.

  6. If you can still realize millions of dollars of appreciation in your home, sell and take the money now. Put the wealth in the bank. Wealth in real estate is fleeting.
    Remember: building wealth takes work, period. If you are in a situation where you or every mediocre numbskull that you know are “getting rich” passively, there is something wrong. It is not the functioning of a normal economy. That doesn’t mean that it isn’t real money if you sell now, but it does mean that something is wrong, and it can’t last.

  7. Snats -> You make complete sense, but the bubble, like a Siren, sings so sweetly that none under its spell will hear you.

  8. Pingback: “One guy told me that he “owns” 6 condos in Yaletown. All of them have negative cash flow.” | Vancouver Real Estate Anecdote Archive

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