RE_ATM – “If you bought a house in the past 10 years…work shmork! Who needs a career? I have never seen such high rolling, high spending, low income earners in my life!”

Epica at VREAA 5 Apr 2011 at 11:11am“Close friends inherited $200k in 2001. Purchased 1st home for $300k. Sold in 2003 for $500k. Bought 600k home… sold in 2008 for $1,250,000. Purchased $1,400,000 home. Windfall! …you’d think! $1,000,000 in equity!
Wrong! …$900k mortgage on the 1.4 property, co-signed by parent…35yr amortization. Why? because he is a self-employed small businessman… she is a stay at home parent, and the missing $500k was used to conspicuously consume… I mean supplement their income to the tune of 70k per year. But wait! recent HAM [hot asian money] invasion indicates that their van westside home is currently worth $1.8+ mil!!! soooo….you guessed it they now have a $900k ish mortgage and $400k heloc! I have never seen such high rolling high spending, low income earners in my life! It is frightening! There is absolutely NOTHING productive going on in this town anymore. If you bought a house in the past 10 years…work shmork! who needs a career. Be very, very afraid for the children.”

6 responses to “RE_ATM – “If you bought a house in the past 10 years…work shmork! Who needs a career? I have never seen such high rolling, high spending, low income earners in my life!”

  1. LOL, the first time through I misread this line:

    Why? because he is a self-employed small businessman

    to be

    Why? because he is a self-important small businessman

  2. I feel slightly embarrassed by the tone of my rant and guilty for exposing (albeit anonymously) the finances of friends. The only reason I am privy to these particular numbers is because they are friends. They are not, however, unique on the vancouver westside. There is a fairly decent sized cohort of late 30 to mid 40yr old second generation westsiders. These people grew up here in mid to upper class families and have returned home to roost (usually with help from family) and to raise their own families in the last 10 years. Many of these families have single, average incomes and large mortgages. They use their real estate “wealth” to replicate the lifestyles their parents’ incomes had been able to afford. They want the same things for their children. They have grand-fathered Arbutus Club memberships, they winter in Whistler, spring break in Maui, and long-weekend in Palm Springs. Many have family wealth to fall back on or future inheritances to buffer them (if they haven’t already been pre-spent on down payments)…but they are not producing incomes to support the lives they are living. In the event that home values fall or simply just stagnate these people will be screwed.

    • There was nothing at all wrong with either your tone or the timbre/quality of your anecdotals, Epica (which hardly qualify as either ‘rant’ or polemic)…

      I could as easily have told similar stories (with even more shocking ‘numbers’).

      Thank you.

      • Its not the tone so much as the exposing of personal financial matters. I suspect Epica’s friends would be non-plussed (at the least) to see their (supposedly) personal affairs revealed on a highly-trafficked bear blog.

        This is irrespective of the point (house as ATM), which, I agree, is reckless though likely not unique.

    • 和谐的房地产泡沫

      that’s what this site is for – it’s going to be the single greatest repository of Vanblahver Real Estate LULZZZzzzz EVER SEEN.

      and when that happens, you’ll be proud to be a part of it. 😉

      soon, things will get so absurd we’ll witness a bubble in bear blogs.

  3. If they “have family wealth to fall back on or future inheritances to buffer them”, I wish them good luck. I personally know of 2 individuals who squandered away their double-digit M$ inheritances through bad investments.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s