Spot The Speculator #79 – “A relative of mine was caught chasing the “boom” in Calgary in 2006. Took a huge hit on 3 properties. Swore he would never buy again. Guess what? He’s now in Vancouver, buying at another crest.”

“A relative of mine was caught chasing the “boom” in Calgary a couple of years ago (2006). He bought 2 houses (one to live in and one as an investment) and a condo. He subsequently took a huge hit on all three when he was forced to move to Vancouver nearly 2 years ago. The properties all became completely illiquid a couple of years ago. He listed one house 5 times, with lower prices each time until he finally unloaded it, last month, at a huge loss.
Swore he would never buy again. Guess what. He’s back, now in Vancouver, buying at another crest.
Oh yeah, when he moved to Vancouver, he took a rather large (20%) salary cut.
Some people never learn. And the streets seem to be littered with these stories here in Calgary.”

LJ at VREAA 1 April 2012 11:37am

One has to stand in awe of the power and perversity of market psychology.
This anecdote reminds one of the recent discussion on these pages where commenters likened RE speculation to addiction.
– vreaa

10 responses to “Spot The Speculator #79 – “A relative of mine was caught chasing the “boom” in Calgary in 2006. Took a huge hit on 3 properties. Swore he would never buy again. Guess what? He’s now in Vancouver, buying at another crest.”

  1. It was about 18 years ago or so that Alberta gave addicts one way bus tickets to the coast. Looks like that old saw is rearing its ugly head again, in a way!

  2. Renters Revenge

    Play with fire and you will get burned. Eventually.

  3. That’s like the gambler who loses everything going back to the blackjack table courtesy of borrowed money to try to win everything back.

  4. Don’t these morons ever run out of money?! Oh yeah, I forgot, they’re using SOMEONE ELSE’S MONEY. The tax payers’ money – through the CMHC!

    My hand twitches as a reach for my holster and draw out my gun. Bang! “Give me back my money you filthy speculator,” I fire again over the dead corpse, “and take your reverse mortgage with ya!”

  5. [expletive deleted. -ed.]

    [expletive deleted. -ed.]. Why won’t anyone buy in Phoenix. I bought a $50k house with CASH and remodeled it. It’s rented for $950/month and I’m going to now list it for $99k. That’s how real money is made.

    People forget the first rule of investing. Buy LOW!

    • Basement Suite

      “People forget the first rule of investing. Buy LOW!”

      If we ever get a housing “crash” here (i.e., return to fair prices) maybe we can follow that rule here too. But with sub 3% mortgages in abundance, and prices at all time highs maybe flattening out a bit for now and poised for a minor correction a la 2008 when we bounced hard, I’m not predicting a crash for Vancouver even I want one. Buy low will not be possible here until mortgage rates get back to 6%, which will be well after 2020. Free money is the air in our bubble, sub 3% is the new normal.

  6. Basement, you really need to toot something else. We get that you are clueless about how interest rates will be increasing much earlier than your 2020. You don’t need to keep saying it. Otherwise it’ll be as easy to scroll past your posts as it is chubsters.

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