Spot The Speculators #79 – “I have 2 RE agents in my extended family who have been flipping for about 7 years and they are both multi-millionaires on paper. They are completely leveraged to the hilt.”

“I am no realtor but I can guess that many of you can see the “gold rush” mentatlity of the last few years in Vancouver is a temporary blip – some people will make a fortune and those who came too late will be left with a bum claim. I think realistic numbers and a price correction is actually very healthy for the long-term health of RE in Van and surrounding areas. I am bearish on RE but unlike many others, I do not want to see a crash – that will wipe out too many families and destroy the economy. I do want to see some flippers get burned badly, and I want regular Vancouverites to be able to afford a home (with sacrifice and due to hard work). Unfortunately I have 2 RE agents in my extended family who have been doing this for about 7 years and they are both multi-millionaires on paper, by this I mean they are completely leveraged to the hilt. It is a tops-turvey bizarro world where a RE agent makes more than a surgeon selling “nothing special” or even teardown bungalows, and makes millions flipping a half-dozen presale condos with “creative” financing.”
Leben at yattermatterc.com 2 Apr 2012 10:59am

12 responses to “Spot The Speculators #79 – “I have 2 RE agents in my extended family who have been flipping for about 7 years and they are both multi-millionaires on paper. They are completely leveraged to the hilt.”

  1. ” I do not want to see a crash – that will wipe out too many families and destroy the economy. I do want to see some flippers get burned badly”

    “Many that live deserve death. And some that die deserve life. Can you give it to them? Then do not be too eager to deal out death in judgement. For even the very wise cannot see all ends.”
    – J.R.R. Tolkien

  2. I’m not sure you can do both, NOT see a crash AND burn the flippers.
    Just about everyone who bought in the last few years is an investor/flipper.
    I’m sorry, but I have no sympathy for those who took the free money from the banks. I have more sympathy for all those who didn’t and who saved money and lived within their means. They are the ones who have been punished.

    • Basement Suite

      “I’m sorry, but I have no sympathy for those who took the free money from the banks. I have more sympathy for all those who didn’t and who saved money and lived within their means. They are the ones who have been punished.”

      HEAR HEAR.

  3. Hi there Westsider. Is the interest rate rate on mortgages really “free money ” My mortgage was just under 4%, hardly free.
    People who saved money and lived within their means will probably be in good shape unless the market drops over 50%. I dont think anyone here thinks things will drop here that much, do they ?
    Also, do you really think a majority of the people who bought in the last few years are speculators . Im going to put the number of people in that category at a high of 15%, just a guess, but I really cant see it as being very significant at all.
    I think most people in Vancouver are just dealing with a bad situation the best that they can, no-one wants to overpay for homes.

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