“We got sick of the ridiculousness of the market. People overbidding on shacks and financing some 90yr-old’s retirement by buying her house which she bought for $90K in 1952 for $1.2 Million.”

“My fiance and I both have good professional jobs in health care. We are in our early 30s. He owns a condo in east vancouver that could probably go for 250,000 to maybe 300,000. He bought for 180,000 5yrs ago and renovated. I am renting. We have enough in the bank for a sizeable downpayment on a home in North Vancouver. We are looking to finally consolidate homes and start a family in the next few years. We’ve been looking for 7months and have just been on a 2month hiatus as we got sick of the ridiculousness of the market and people overbidding on shacks and financing some 90yr olds retirement by buying her house which she bought for 90,000 in 1952 for 1.2 Million$ ..you know, the recent Vancouver usual. The market is changing. The new mortgage rules actually suit us favourably as the interest rates haven’t, yet, changed and the other restrictions don’t apply because with our cash flow we could have a Million dollar home paid off in 15 yrs with a 25percent downpayment. My question is, what do we do? If I were to buy a home right now, we’d plan to stay there for at least 10 to 15 yrs. Rental homes on the North Shore are few and far between. And at some point you want to start your life and settle down. I try to stay informed on housing and the economy. Lots of signs pointing in the direction of not buying. Should we sell the condo and rent? Should we keep the condo, rent it out and rent a home? Should we buy something if we can lowball and get a home that was 1Million earlier now for 850,000??”
from Amber, via Garth Turner, at greaterfool.ca, 26 Jul 2012

This couple will likely be buyers quite soon, as the market softens a little more.
They’ll tell themselves they’ve “lowballed” and gotten a “deal”.
They seem to harbour at least some belief that one can’t “start your life” until you own your home.
– vreaa

17 responses to ““We got sick of the ridiculousness of the market. People overbidding on shacks and financing some 90yr-old’s retirement by buying her house which she bought for $90K in 1952 for $1.2 Million.”

  1. Wait…. garth sent you this himself? He lurks here too?

    • Garth posted this on his site as part of one of his headline posts (follow the link).

      • Lurking Lola

        Just checking! I saw it there, but maybe he sent it in.

        It seems like the real estate quotes/opinions/stories are coming fast and furious these days. Lots of anxiety and anticipation in the air, depending on which side of the fence you are on. Sigh. I know we need to revert to the mean, but I don’t look forward to the carnage ahead.

  2. Renters Revenge

    Start your financial life – let a landlord subsidize your housing costs.

  3. Am I the only one here who finds it funny/scary that “Amber” thinks retirement doesn’t start until ’90’? Or, how bitter she is about paying for someone else’s? Isn’t that one of the main reasons most people claim they are buying real estate for these days? How does she think a person will access that money if they don’t sell?

  4. The feeling you get when you know you know it’s a bad decision but you also know it’s inevitable you’ll make it. Why fight it.

    • Speaking of “BadDecisions & Inevitable”

      “For couples divorcing in 2002, the average duration of marriage was 14.2 years, up 0.2 years from 2000 and 1.4 from 1993.”

      [StatsCan] – http://tinyurl.com/cmnorw5

      “A typical mortgage in Canada has a 5-year term with a 25-year amortization period.”

      [RateHub.ca] – http://tinyurl.com/bumlae5

      [NoteToDr.J: As a matter of general principle I prefer to leave quantitative analysis to more talented/gifted practitioners, such as yourself… But this was TooTooTempting by far!…]

      • According to The Onion the world’s death rate hasn’t budged from 100%.

      • And on that, I had always suspected that, for some, once the wedding wheels were in motion, even with the little voice is reminding them of the concept of sunk cost and that “the rest of your life” is about as real as it gets, the impending disappointment should proceedings be cancelled still rules supreme.

        What’s true of fidelity is often true of finance.

      • How apropos. AnimalSpirits…

        Once upon a time I was unexpectedly and enthusiastically snogged by a ravishing brunette from FidelityLondon I had known for all of 5 seconds…

      • The City is known for its testosterone-fuelled environs. City Boy is a quick read (1-2 trips to the loo max), but written from perspective of someone on the inside. Relative of mine in London says he can spot City bankers from blocks away. Not a useful skill, mind, any more than me discriminating crows from pigeons.

  5. “My fiance and I both have good professional jobs in health care. We are in our early 30s”
    ” And at some point you want to start your life and settle down”

    So… she’s a professional in her 30s, engaged to another professional in his 30’s, and they appear to have about 250K to play with.

    At some point she just wants to “start her life”?

    Now that’s just sad. That girl needs a whole new frame of reference for success, and believe me, it’s not a house in North Vancouver.

  6. Speaking of GettingSick & RidiculousMarkets…

    “You know, communities like mine just don’t have the funds to do that.” – Andy Anderson, Mayor of Ashcroft

    [CBC] – B.C. small towns lure doctors with housing

    “The mayor of an interior town says rural communities in B.C. are outbidding each other to attract doctors, with some communities shelling out considerable amounts of money to secure comfortable temporary housing for new physicians.

    Jason Earle, acting mayor of Princeton, said a doctor shortage forced the closure of the local emergency room four nights a week. His town decided to try luring physicians by leasing a townhouse to make available to fill-in or temporary doctors, known as locums. “[It’s] a fully-furnished deluxe accommodation for locums to stay at when they come to Princeton,” Earle said.

    The town of Nakusp recently took a similar approach and bought a $280,000 home in hopes of enticing a doctor to relocate.”…

    http://tinyurl.com/c8xnlb6

  7. To quote someone – I forget who, “Life is what happens while you’re making other plans.”

  8. AmBer, if you are still out there – please listen – please reconsider the demographic you are thinking of buying into!!! You are about to make the worst decision of your life! We are warning you!! We, 2 working professionals, bought here in North Van, and it has been hell. Oh, not because of “beautiful” North Van. It is because of our neighbors.

    Please consider for a moment people who bought here in the last 40 years. Family friends of my parents bought a bungalo in Lynn Valley in the 1980’s for $23,000 cash. THINK OF ALL THE OTHER BOOMERS that purchased housing for this cheap! Look at the vehicles (all stickered out with blue collar tradesman signs) in SO many of the driveways, beside the $850,000 home you want – and look at your new neighbors, who have tarps over their roofs to stop the rain and burn garbage all winter to heat. And look at the average age here – drive into any cul-de-sac and look at who is in the yard. It is a competition of walkers out there! The yards are empty of children. They are shutting down schools here, and there is a lack of younger families on the North Shore in general.

    Trust me, most of the people who bought here in the last 40 years are not going anywhere, and if you think you are going to “fix” this situation, you won’t get any help from city council or the bylaws. They keep the “boomer quo”. In essence, you will be buying a house in a neighborhood where you neighbors are NOT working professionals – many times not working at all – and they will NOT like you simply because – you are.

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