Spot The Speculators #45 – “They revealed that they had 3 other units in the same area. They were self employed and were banking on their condos as their retirement fund.”

matt at VREAA 19 Jun 2011 5:59pm“I went to view an apartment today which was being showed by the landlords. We got to talking and they revealed that they had 3 other units in the same area. The wife let me know that she and her husband were self employed and were banking on their condos as their retirement fund.”

13 responses to “Spot The Speculators #45 – “They revealed that they had 3 other units in the same area. They were self employed and were banking on their condos as their retirement fund.”

  1. “banking on”

    lol

  2. i can haz magic beans?

  3. Ralph Cramdown

    Of course, there’s absolutely nothing wrong with this if they bought them 20 years ago and they cash flow…

  4. 5 condos and 45 bucks on his bank account…

    check this story: http://www.greaterfool.ca/2011/06/21/escape-from-van/#comment-108694

  5. I honestly felt sorry for this couple. They were nice and based on our conversation I felt like they were just doing their best to make prudent financial decisions.

    • Yes, and it is very hard to do so under current conditions.
      They probably are reluctant to take profits by selling any of the units (likely thinking “what would we do with the cash with such low returns on low risk investments?”).
      They are also likely grossly underestimating the risk of serious price drops (all evidence being that prices only go up, right?).
      So, nobody is blaming them for not being ‘nice’.
      Dependence on future price strength is endemic in the population.
      Regular folks think they are being prudent, but they are actually gambling on price increases (often with substantial leverage).

      • I don’t think this couple understand what risk is. I think their only fault is ignorance.

      • With regards to your comment about being “nice”, I generally consider most people in Vancouver to be douchebags so it stands out whenever I meet people who are down to earth and aren’t interested in the trappings of living like a Vancouverite. By that I refer to an archetype I’ve observed and like to call the “yogatard”. He/She is the (obviously) lululemon clad, ethical food eating, pot smoking hypocrite that makes 80k a year and thinks that people that live in Surrey are white trash.

      • midnite toker

        Yeah those douches make us us regular pot smokers look bad..

  6. matt not everyone in vancouver is what you perceive to be a ‘liberal snob’ – as you can see by the riots, we have a army of douchebag meat heads ready to beat down the gates.

  7. Perhaps Ralph Cramdown is Rusty, or not, I don’t know, but I have to agree. Depending on the status of their financial position, when they bought, how much they paid, what their equity is, this could be a great outcome for them.

    However, if purchased after 2003 (maybe beforehand, maybe a bit after, lots of variables), they could be in trouble (or not? after all, speculation, whether positive or negative, is still speculation).

    I know a couple that owns 4 properties as well, 1 is their home, 2 are currently being rented out by tenants, and 1 is rented by their son in university. All were bought in different markets. 2 are paid off (home and one rented). Another will be paid off within the next 5 years. The last was bought around 2003-04. Considering that the two paid off are valued at around $800K (combined), the third will be another 425K, they are in a half-decent position with their fourth (owe probably under 60K on the property).

    They weren’t in a rush. They didn’t get greedy. How much different are they from Spec #45 – we don’t know. But how is your bitter uninformed self-righteous condemnation working for you?

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