Scientists Skip The Math – “No calculations or economic analysis are needed, my co-workers in the science/engineering/technology sector and my friends are always certain that buying is always a better choice. My choice to rent always seems to puzzle them.”

“My choice to rent always seems to puzzle other people. No calculations or economic analysis are needed, my co-workers and friends are always certain that buying is always a better choice. My friend just bought a house before the mortgage rule change, and didn’t take my advice. We all work in the science/engineering/technology sector (not in Alberta) but he is completely oblivious to what’s happening in the rest of the (economic) world. He’s the type that truly believe Canada entered and emerged from the 2008 recession unscathed. Actually, he didn’t even know there was a crisis in 2008 and there will (probably) be one from the next country exiting the Eurozone! It’s sad that these are the types of people that are trying to give me advice.. All I can do is be as humble as possible… but it’s frustrating… My point is – the herd thinking is a very strong force. One that I refuse to believe in.”
Petr Syk at VREAA 8 Jul 2012 5:54am

22 responses to “Scientists Skip The Math – “No calculations or economic analysis are needed, my co-workers in the science/engineering/technology sector and my friends are always certain that buying is always a better choice. My choice to rent always seems to puzzle them.”

  1. Keep your own counsel.

  2. Most, I bet in the range of 80-90%, have NO idea what is really going on in this world. Ask anyone what the price of GOLD or Silver per oz, they haven’t a clue. But they will know the cost of the iphone, ipad or blackberry and how to tweet while on facebook. Staying dumb should be a sin.

  3. My (highly educated, highly intelligent) co-workers are the same. One, for whom I have the utmost respect professionally, even said “prices have never gone down by more than 10% in Vancouver”. He’s in his late 50s and has owned several homes so it’s not like he has only lived through the ‘good times’ of the last decade.

  4. This isn’t a question of intelligence, simply information and education.

  5. Somehow people craves knowledge but not in the (personal) finance/ economics arena.

  6. Thanks for dissecting me guys! I’ll keep on lurking around this great site filled of tasty anecdotes.

  7. It’s a prestige thing; professional people need to show other professionals their trophies, their wives, their cars, and above all their houses. Most professionals would feel emasculated if they did not own a home, and most of them will be paying for a lifetime for this one purchase unlike their parents who could easily pay it off in ten years. They may be professionals in their field but they are ignorant fools in terms of the real world: Economics or Politics. This is why they live in a bubble (pun intended!) and have no understanding of the world outside that is a scary place indeed. Call it the Ostrich Syndrome! Ayn Rand said, you can ignore reality but you cannot ignore the consequences of reality! Reality is about to bite foolish Canadians, professionals or not, in a way that they can never visualize even with their 3-D glasses as they watch CBC, CNN, TSN and the other hallucinogenic channels on their 60 inch flat panel TVs.

  8. Joe_Blown_Away_By_High_Housing_Costs

    “While the Colliers report showed most retail areas in Canada saw increases in new lease rates, Vancouver’s Robson Street saw the sharpest decline in the country”

    http://www.vancouversun.com/news/write+obit+Robson+Street+just/6913657/story.html

  9. Joe_Blown_Away_By_High_Housing_Costs

    “Vancouver is the worst city in Canada for traffic congestion and the second worst in North America”

    http://www.cbc.ca/news/canada/british-columbia/story/2012/07/10/bc-traffic-congestion-vancouver-ranking.html

    Nothing that demolishing the Georgia and Dunsmuir Viaducts can’t fix! What a joke!

  10. Funny, few people I work with think prices are sustainable. It was a 5 minute lunchtime conversation about current property values compared to both utility investments and property in the US to make the case without much argument otherwise, even amongst those who have owned for months or years.

    I get the sense this is not the normal situation.

  11. “My point is – the herd thinking is a very strong force. One that I refuse to believe in.”

    I don’t know if you were watching the 2008 crises unfold in detail. I was. What will probably amaze you is how fast the herd reverses course and heads for the exit door when it all goes down.

    Sometimes being in the herd feels warmer and safe, but when the big bad wolf comes, the sheep always run in the same direction. It never fails.

  12. A fav pastime, traveling this province to many of the breathtaking regions complete with quaint hamlets and towns. One of the first things that takes some getting used to–how creative and imaginative different people are. There are so many artists and backyard philosophers in the hinterlands, I always come back to the lower mainland rejuvenated and prepared to tolerate the boredom of the beehive. I attend about three or four dinner parties each year, business friends and so called intellectuals, and it’s easy to spellbind the locals with tales of the fantasy land past Mission bridge.

    By the way, freehold houses on a half acre for under $200,000 are creeping closer, and closer… boo! Reams of cottages for sale. Lac De Roche and Bridge Lake were flush with realtor signs, and even more ‘for sale by owner’.

    • The interior is great. And you don’t even have to live in a hamlet if you dont want too. Kamloops, Kelowna, Prince George… plus places like Nelson, Revelstoke, Smithers, Cranbrook. All nice places, great people, lower (or very low) house prices, minimal commutes, real culture, wilderness…

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