20-Something Chat: “I bought a house in Kits last week” .. “Did you win the lottery?” .. “No, I’m just in debt for 60 years. I better get a job after school.”

painted turtle at vancouvercondo.info March 7th, 2011 at 7:28 pm
“I am done wondering about this real estate market after what I overheard today. I almost choked:

Person A (20 something): “I bought a house last week”
Person B: [silence]… “Do you like it?”
A: “Oh yes. It’s in Kits, and 1400 sqft!”
B: “….. Did you win the lottery?”
A: [laughing] “Oh.. no… I’m just in debt for 60 years. …. Well, I guess it means I better get a job when my education is completed.”

8 responses to “20-Something Chat: “I bought a house in Kits last week” .. “Did you win the lottery?” .. “No, I’m just in debt for 60 years. I better get a job after school.”

  1. How can you be in debt for 60 years when the longest mortgage you can get is 35 years?

    • More likely this is case of the parents buying a place for the kids to live in as it would be impossible for a “student” to come up with the several hundred g’s DP and have the income to qualify for the financing to make such a purchase. Of course, the kids will still have to pay for the fees and other associated costs (not to mention the 60 yr loan from mommy and daddy) as this is part of the deal they have made with their parents.

      • El Magnifico

        Assuming he’s past 20, his parents are probably between 45 to 55. In 60 years from now, they’ll most likely be dead… So he’s not really in debt for 60 years and he’ll probably have inherited his parents wealth much before that and will pay off his debt much earlier.

      • El M: sure, I’m tossing around the 60 yr figure pretty loosely. That being said, this kid wouldn’t have qualified for 35 yr mortgage without having to effectively borrow a huge whack of cash from mommy and daddy. I guess it’s all good for Junior if this market keeps going up forever and the parents exit this great place right on queue. Great. Problem fixed. Nothing to worry about. Resume surfing the net and sipping on my $6 coffee at Starbucks.

        Hmm, I wish my parents had given me a free house too.

      • El Magnifico

        “Hmm, I wish my parents had given me a free house too.”
        I can’t agree more with that!

        I think what this kid really meant was “Mom and Dad bought me a house in kits but I feel bad about it so I make up a statement that I’m under a huge pile of debt to make me look not so spoiled”

        That reminds me the kids in school that claimed they didn’t work at all for an exam and ended up getting an A+… I have very little respect for people who don’t assume who they are and what they do…

  2. Where do people get the money?!
    I walked by the new Michael Kors store the other day, read that Stuart Weizman is opening up shop and thought about all the high end retail that has been moving in to the city. My friend who is a commercial designer says buisiness has picked up substantially the past year; about 3 years ago almost everyone else in his field in the city went bankrupt. I’m feeling like people knows something the bears don’t. I’ve been a bear since 2003. I can’t believe it is is 2011. I’m actually starting to believe this housing monster, the monster of all housing monsters, is just never going to pop.
    I have to get out of this city!

    • I doubt it’ll last. Personally I think this is the “after birth” of the Olympics.

      Essentially what has happened is:

      1. The market for high-end goods in a lot of places isn’t that good since 2008.
      2. Those brands / people are looking for new places to expand to.
      3. BC / Vancouver is considered “high end” and “happening” in the after Olympic glow, plus a lot of these brands have never set foot in here, so for them it is new territory.

      What will happen, much like with most of these high-end dining places in Gastown and the DTSE is that some will hang on but most will be dead within a year or two.

      Looking here in the Westend I had several stores shut down along Denman and Davie and even the coffee shops seem to be a bit emptier than usual.

      We’ll see what happens, but my bearish outlook has not changed, not only because of housing prices but because of the other things that are going on. Just because it’s quiet right now doesn’t mean the storm is over, we’re pretty much at the eye at the moment.

    • Bearish since 2003 – that’s 8 years until now… What’s the average life expectancy in Canada – about 80 years… So you have spent 10% of your life waiting for the prices to go down only to witness the largest real estate insanity ever. Will the prices crash? If yes, how long until they reach sane levels again?

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