“An unemployed chef, with his unemployed wife, carrying 850k of debt over 2 un-sold properties.”

“How about an unemployed chef with his unemployed wife and carrying 850k of debt over 2 un-sold properties. They are making payments with a line of credit. He sat down with my wife over coffee and she said he looked really depressed. He is wondering why the media still says the market is balanced when clearly it has collapsed”
Pat at VREAA 4 Jun 2012 8:35am

18 responses to ““An unemployed chef, with his unemployed wife, carrying 850k of debt over 2 un-sold properties.”

  1. I see sold signs everywhere here in Coquitlam. As long as they are willing to drop the price, their houses will sell.

    • On the way up each sale at an inflated price sets a new floor, on the way down it sets the ceiling.

    • I’m seeing sold signs too, but the data seem to be somewhat incongruent.

    • Try to feel some sympathy. Every sold sign now is just a marker in time of someone elses future financial loss. They don’t know it yet but it is already too late. They bought at the top and many of those new, fresh, young (and old) buyers will not survive this experience. Losers all. That is guaranteed.

    • Renters Revenge

      Farmer, you are so right. So many people just have no idea.

  2. In *my* neighbourhood, they keep each “SOLD” sign up for what seems like months.

    • Renters Revenge

      In my neighbourhood there are two houses side by side with real estate signs. One has a sold sticker on it, the other doesn’t. It’s been that way for almost 4 months.

    • Totally true! When we bought our place (not in Vancouver, mind you) almost a decade ago, the “SOLD” sign was up for, at most, a couple of days.

      Now when I walk around the neighborhood the signs stay up for weeks on end.

      It would be interesting to collect data on number of days for SOLD signs to see if it correlates at all to market conditions. In terms of basic psychology, I’d bet that there’d be a negative correlation.

      • A few of those “Canadian Action Plan” signs were put up around a few buildings in the past few years. They were required to be kept up 90 days from installation of the renovation work.

  3. Are they blaming the media and the market for their own stupidity?

    And, yeah, sub-prime does not exist in Canada. 🙄

  4. The market isn’t bad yet for sfh in Coquitlam. Very balanced market condition at 4 months of inventory. It’s the westerly part of the lower mainland where we are seeing MOI rising and sales slowing. Some areas like east Van is actually hot. It will be an interesting summer and fall. I am certain the answers will be there for us by then.

    • reality check

      yes my area is still hot

    • In the building we’re in in Fairview (~5 years old) almost 5% of the building is now listed, although as near as I can figure, the last possible sale was probably back in February.

    • 4SlicesofCheese

      There are 4 houses for sale that I can see from my front yard have been for sale for a few months now. And much more on my usual commute route.

      Seems like SFH over 1.2 in East Van are not moving that quickly.

  5. Ralph Cramdown

    At least with two properties he can list them both and hopefully sell one. He DOES have twice the chance of selling if he prices realistically.

    Over at the mortgage broker blogs they keep saying that most HELOC folk use ’em responsibly. I wonder if this is responsible use or not? If he didn’t have a HELOC but he had cash reserves, would he be throwing his cash at the property, or would that somehow be different in his mind?

    • They seem to feel pretty comfortable if 80% of mortgage holders are behaving themselves, as if 20% of distressed households won’t bring the market down.

    • @RC

      “If he didn’t have a HELOC but he had cash reserves, would he be throwing his cash at the property, or would that somehow be different in his mind?”

      That is the question. In my experience, people tend to be much, much more cautious with money they’ve actually earned, rather than have fall into their lapsfrom the HELOC gods, so to speak.

      I know people in my own neighborhood that funded a 3 week trip to Europe for four people through a HELOC this spring. Can you imagine how long it would have taken to *save* for that trip with all the other expenses they have going with a family of four? It would have taken them YEARS. In this instance, though, the HELOC money was akin to winning the lottery, and yes, they were far less prudent with the spending. I doubt that it occurs to them that they are just amortizing that trip to Europe over the next couple of decades or so.

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