“It’s been taking us about five months to pay off the amount of each cheque we wrote against our HELOC every two weeks during the height of our renovation. And that’s at an interest rate below 3%.”

Froogle Scott comment at VREAA 20 Jan 2011 8:34pm
“It’s been taking us about five months to pay off the amount of each cheque we wrote against our HELOC every two weeks during the height of our renovation. And that’s at an interest rate (variable) below 3%.
Thank god our renovation, once it really got going, didn’t last that long. And thank god we stopped when we did…”

[Those of you who don’t yet know Froogle Scott, check out the fascinating saga of his house purchasing and renos here: ‘The Froogle Scott Chronicles: Mortgaging Our Souls In Paradise’.]

9 responses to ““It’s been taking us about five months to pay off the amount of each cheque we wrote against our HELOC every two weeks during the height of our renovation. And that’s at an interest rate below 3%.”

  1. Scott, that’s a great obvious anecdote to make. Someone puts down some $ on a reno LOC and carries the interest. In almost all cases, save a suite reno, income doesn’t change, only the utility of the property for the owners. Think of it as a self-imposed rental increase 😉

  2. We’d suspect that a large number (majority?) of those with HELOCs aren’t paying them off in this (sensible) fashion. Many must simply be hoping to be bailed out of the extra debt by ever increasing RE prices.
    The whole bubble has been about stretching to service debt rather than pay it off.

  3. Checkout this recenct video form CBC, I wonder what watching this clip will feel like in 2020.

    A record is set after a dilapidated Vancouver home sells for over $1 million, the CBC’s Chris Brown reports
    http://www.cbc.ca/video/#/News/Canada/1239665812/ID=1758092890

  4. pricedoutfornow

    It’s madness…pure madness! I went to an open house today for a property very similar to the one we’re currently renting. Price is $500k. My rent? $1350/month. The numbers just don’t add up. And no, there were no “rich Chinese” lined up down the street to view this open house. Just regular people (gasp-some white!) who will probably take out massive mortgages if they choose to buy. Personally, I’d rather rent.

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