Spot The Speculators #48 – “Lots of locals buy houses around me, and they all say foreigners are making houses unaffordable. They do not see the irony in this.”

alx at 15 July 2011 1:28pm
“Got a friend who’s getting married. She and her soon-to-be husband were renting in east Van before and they talked about how rent was reasonable and houses were too costly to buy. But now that they are getting married, suddenly “buying a house” is a given.
He said he prefers a house over a condo because for the extra he pays, he can get a tenant that helps with 1/3 of the mortgage. He hopes the interest rate doesn’t go up too soon. He wants to buy in east Van.
It’s sad and telling of the times and city we live in. No one questions why we should already count on being a landlord by buying a house.
Why should interest rates stay low for a long time?
Why should crappy houses cost $1 million?
Why did this crappy house cost less than half that, just a decade ago?
No, they are not rich. They are not foreigners. Seriously, lots of (local) people buy houses around me, and they all say foreigners are making houses unaffordable. They do not see the irony in this. I did not even try to persuade them to do research. I am mentally exhausted from trying to deter people from taking on a pile of debt on an asset sitting on top of a cliff.”

Another example of a seemingly innocuous ‘family’ primary residence purchase that is based on the expectation of ever continuing supranormal price gains. With forced landlordism to boot. – vreaa

10 responses to “Spot The Speculators #48 – “Lots of locals buy houses around me, and they all say foreigners are making houses unaffordable. They do not see the irony in this.”

  1. Be a man, do the right thing, buy a house with cash for your wife and provide security for your family and children! Geez….how could you even think of getting married and rent??!! That’s just so irresponsible! How would your child able to grow up in an environment like that? How can you possibly provide a good future to your wife when you don’t even have the financial resource to buy the most basic of life’s neccessity, a house?!

    I’m surprised the wife’s parent even let their daughter get involved with a guy to this point. A house, ideally fully paid for, should be a pre-requisite for a guy to even propose to a girl, never mind at the getting married stage!

    oohh…wait…this isn’t China. Your friend should count himself lucky…

  2. Who doesn’t dream of a house with their very own tenant!

  3. Just 1 tenant? A real house owner would get at least 2 I say. C’mon back me up on this Rusty!

  4. 4SlicesofCheese

    Just went to ask about some RESP info for my daughter, obviously adivsor asked about if I am looking, when I asked what she thought about reports coming out lately about possible housing correction her reaction was half shock/half downplay.

    She actually looked like if she doesn’t know what I am talking about and mention how interest rates are great and how BOC will not only raise by very small amounts.

    If she was acting she is doing a hell of a good job, or maybe she truly believes this. Or maybe its all in the training. Makes me wonder where can I truly get good honest advice about my money.

    • 4SlicesofCheese

      Forgot to mention it was at RBC, at least my CIBC guy said “there could be, its hard to tell.”

  5. Why settle for two tenants, when you can have three and go for the laneway house! Coming soon to over inflated houses with people high in debt. Even in Point Grey these are popping up.

  6. nobody you know

    “forced landlordism”

    You can say that again. If you were ready to buy a starter home in 2003 you could buy one at a reasonable price. Four years later you would be expected to pay twice as much for the exact same house.

    Unfortunately, most people can’t afford to pay an extra $300k+, so they live upstairs and raise their children in half a house while a stranger they met on Craigslist sleeps in their basement. They should be mad as hell, but instead brag about it, trolling the real estate blogs and portraying themselves as trailblazing capitalist heroes. I find it all to be a little surreal.

  7. pricedoutfornow

    For every one foreigner buying real estate, there are 20 locals running around screeching “the Chinese are coming! Chinese are coming! Buy now or be priced out forever!” hahahahaha………

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