“How will I ever be able to afford that tear down crack shack on the West Side when I’m competing against overleveraged idiots?”

Manna from heaven at vancouvercondo.info February 9th, 2011 at 9:26 am– [After referencing BC’s 160% debt to disposable income ratio:] “How will I ever be able to afford that tear down crack shack on the West Side when I’m competing against overleveraged idiots? Now, before some cheerleader chimes in and says that I should lower my sights, I’d like to add that I’m an accredited investor (more than $1 million in liquid assets) and routinely make in excess of $200,000 a year. Please don’t think that I’ve shared that information for the purposes of bragging. My financial situation and my inability to purchase a dump clearly illustrates the absolute absurdity of this market and anyone who wishes to defend it.
Tempted to buy some waterfront on the coast and say the hell with it! I could fish, harvest clams, mussels and oysters, and forage for berries. Doesn’t sound too bad.”

4 responses to ““How will I ever be able to afford that tear down crack shack on the West Side when I’m competing against overleveraged idiots?”

  1. The only way some of my friends were able to afford it was just by having their parents leave them their house when they retired as a gift. Do the math – a mortgage on a million dollars works out to around $5500 per month, but don’t forget the down payment. Also you can’t get anything decent for over 1 million west of oak street. Some professionals could probably do it – but all their money would be poured into their property. Could rent for half that in the same area and invest the money?? Bottom line is that this area is out of reach for the majority of people.

    • And I think that the point that ‘Manna from heaven’ is making is a fair one. If he, with his income and liquid assets, can’t afford a modest home in a better part of the city, it does, arguably, “illustrate the absolute absurdity of this market.”

  2. “How will I ever be able to afford that tear down crack shack on the West Side when I’m competing against overleveraged idiots?”

    You wait until they die by overleverage, then pick over the corpse.

  3. Manna – you just have to be patient. The correction is coming. I read the TD bank report this week also and it is a good piece. Rising bond rates, a CB rate hike by June, VanCity’s 160% Debt/Disposable income ratio all spell correction in sight. This will all prick the bubble. I am also sitting on $800,000 cash and a condo. No rush to do anything. Never go with the herd! Let the children play first. We will play later. By the way I bot a waterfront up in Comox 6 years ago. It is priceless. I throw the jon boat in the water right in front and go catch some pinks for supper. There are good deals on waterfront right now. That would also be a good option. The only problem is the ferry fares kill me! Time to fire Mr. Hahn.

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