“Friend of mine just bought a foreclosure, fully furnished, of a family who hightailed to Asia, leaving a pile of unpaid debt.”

“Friend of mine just bought a foreclosure, fully furnished, of a family who hightailed to Asia, leaving a pile of unpaid debt.
Not sure of the details, didn’t ask too much, but the story is that the family owed money — not sure how much — and simply pulled up their stakes and left. Think it was family of 4. I don’t think it’s that common but who knows. The guy got the place with all the high-end furniture still there.
Banks now require a certain level of capital in Canadian jurisdiction to approve stated loans. Before February 2012 or so they didn’t.”

jesse at VREAA 30 May 2012 3:39pm and onwards

6 responses to ““Friend of mine just bought a foreclosure, fully furnished, of a family who hightailed to Asia, leaving a pile of unpaid debt.”

  1. The smart ones did not pay cash.

  2. No doubt some of the so-called HAM money is disappearing (along with the people) as troubles mount in China’s real estate markets and the wealth effect vanishes there. News that the Chinese Purchasing Managers Index (PMI) is on the edge of proving the economy is seeing some contracting lies ahead for that country is weighing on markets today. It will be closely watched next month, that is certain, but I have no doubt it will fall below the critial 50 number meaning July could be an ugly month for stock markets. Needless to say, ths is death for Vancouver’s buubly real estate scene. There are very few events that will take the wind out of home-buying faster than bad economic news and falling stock markets. Commodities are getting slaughtered. Not good news for Canada so keep an eye on it. Oil is down sharply which is key but so is almost everything else including our dollar. We should anticipate a rapid rise in the number of listings if this keeps up but in any event the home resale market has already rolled over and is now in a descent. All it needed was another nail to seal the deal and we now have it. What a terible time to be up to your earlobes in debt.

    • Well, there you have it. Not only was I certain that China’s manufacturing PMI would fall below 50 but that it happened just one day after I wrote that. The number issued by HSBC (instead of the Chinese Government) does indeed show that manufacturing is in contraction there with a reading of 48.4. It is not the end of the world of course. But it is not growth either so you just know they are going to try to address the issue. I just don’t know what can realistically be done though as a great deal of China’s manufacturing capability was directed to it’s own domestic infrastructure needs and that is definately in stall mode. Whatever is done to boost output (and indirectly create demand for commodities thus sustaining prices which is our concern) will almost certainly be artificial and so it will likely pay to be cautious with long term holding strategies. We are going to deflate. Not just Canada, but the global economy. There is just no way around it anymore.
      http://online.wsj.com/article/BT-CO-20120531-719359.html
      China Manufacturing PMI ugly chart – This is really why you want to dump R/E
      http://www.businessinsider.com/china-hsbc-pmi-2012-5

  3. In OtherNews Asia and ‘HighTailing’…

    [ChinaDaily] – Wealthy men to select wives through competition

    …”More than 300 women in Chengdu, capital of Sichuan province, signed up to compete to become a billionaire’s bride. The June 3 event was organized by Chinese Entrepreneurs Club for Singles in the city, Tianfu Morning News reported Friday. Applicants have to go through a comprehensive evaluation in 10 categories, including personality, psychological test, physical condition, financial capability, and views on marriage. The average age of the hopefuls is 27, ranging from 19 to 41.”…

    http://tinyurl.com/cm63jwg

  4. If he goes broke – can they just walk away. Well thats why they are marrying him!

    Do the wives come with a warranty?

    What! What! Just asking! lol lol

    On a different issue.

    Sage, what would you rather? People who put 100% down and are in the game, or those that throw a little bit down and walk away if things get tough.

    Do you want somebody of substance, or a fly by night speculator

    • Speaking as a Canadian, I would certainly prefer those of substance however you have to consider that people who managed to smuggle large sums of money out of highly competitive, highly corrupt countries might be smart enough to figure out how to effectively game our system too.

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