Spot The Speculator #30 – “Friends of friends just bought a new place in North Van”; Old Home $500K; New Home $1.3M

Flip Flop at vancouvercondo.info March 25th, 2011 at 9:12 am“Friends of friends just bought a new place in North Van. She’s a teacher who is about to get laid off, he just got a new sales job about 10 months ago. There have a 6 month old baby. List price on the house was $1.3M. 500 block of east 5th, if anyone wants to pull the close price. Granted they had made a little on the last place they owned, which probably sold around 500K. You’re only priced out if you want to be priced out. Still people out there getting in well over their heads.”

Another example of rampant speculation disguised as a wholesome family modestly climbing the property ladder. Their buying leans very heavily on the premise that RE prices can only go up. Aside from problems with being overextended month to month if income drops, they will very likely be completely wiped out in the coming crash. This kind of speculative buying is what is driving our market, and it is a far, far more important factor than foreign money. Like foreign momentum speculators, this kind of buying will disappear once price declines are well and truly established. -vreaa

8 responses to “Spot The Speculator #30 – “Friends of friends just bought a new place in North Van”; Old Home $500K; New Home $1.3M

  1. how much information got distorted after “friends of friends” and internet postings passed around? Probably a lot!

    • “friends of friends” offer insight in to the psyche of current buyers.
      Similarly, it is factual that new immigrants who chose to settle in the LML, have wised up to invest in several properties; career and business are secondary priorities.

  2. For what doth it profit a man, if he gain the whole world and suffer the loss of his own soul? Or what exchange shall a man give for his soul? – Matthew 16:26 [Douay-Rheims]

    [TheAtlantic] – Secret Fears of the Super-Rich / Does great wealth bring fulfillment? An ambitious study by Boston College suggests not. For the first time, researchers prompted the very rich—people with fortunes in excess of $25 million—to speak candidly about their lives. The result is a suprising litany of anxieties: their sense of isolation, their worries about work and love, and most of all, their fears for their children.

    http://tinyurl.com/4zzqfj8

    • great article. It is always a great to ask for the sake of what do I earn money?
      Some of my favorite books on the subject are “Your Money or Your Life” and “The Soul of Money”

  3. Housing: Great Expectations vs. Reality

    Last spring, many believed that not only was the housing collapse over but that a robust rebound was underway. Investors were crowding into foreclosed house sales and bidding up prices in California, often the bellwether state for new trends.

    The tax credit of up to $8,000 for new homebuyers that expired in April spurred buyers and promised to kick-start housing activity nationwide. TheHomeAffordable Modification Program was trumpeted by the Administration to help 3 million to 4 million homeowners with underwater mortgages by paying lenders to reduce monthly payments to manageable size and then paying homeowners to continue to make those payments.

    But then a funny—or not so funny—thing happened on the way to housing recovery…

    Here’s why house prices will now drop another 20%
    http://www.businessinsider.com/gary-shilling-house-prices-2011-3#yes-with-mortgage-rates-so-low-houses-look-cheap-1

  4. This young family very likely has no money left over month to month to enjoy their lives. And they will very likely be wiped out in the next year or two. It’s sad.

  5. Ornamental Tepee Usury

    again,

    a choice without context is no choice at all

  6. Ornamental Tepee Usury

    it is astonishing to me that most aspects of our lives have an enormous amount of the state’s involvement in it,

    but when it comes to making sound financial decisions, it’s encouraging predation upon the populace.

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