“I never thought I would actually hear the words spoken, but I did: “It’s different here!” and, “EVERYONE wants to live here; that’s why prices will never go down.”

“I never thought I would actually hear the words spoken flat out. But, I did. “It’s different here!” and, “EVERYONE wants to live here; that’s why prices will never go down.”
This was yesterday afternoon at a Port Moody BBQ. People in their late 60′s-early 70′s.
So, the meme is still alive and kicking. (I think it’ll take quite a while time to steer public perceptions in the other direction).”

Boombust at VCI 29 Jul 2012 9:42pm

11 responses to ““I never thought I would actually hear the words spoken, but I did: “It’s different here!” and, “EVERYONE wants to live here; that’s why prices will never go down.”

  1. I’ll admit I’m too young to hang around with that age group. However, I was also at a party on the weekend, a house-warming one in fact. One of the guests told me about how she lives in a ground floor apartment with no yard in Pitt Meadows. She has 2 kids, and she’s glad they’re both girls so they can share one of the apartment’s 2 bedrooms. She would love to live in a house with a yard. But she knows that they can’t afford it. She also told me that if she were to sell now, the price she would get would cover the remaining balance on their mortgage, resulting in zero equity gained. Once she factors in strata fees paid, she figures they would have been better off renting.

  2. Barbecuers unite! Pull your listings now! LOL

  3. The coming collapse in RE is going to hit boomers especially hard for a couple of reasons. First, as a group they are banking almost entirely on real estate to fund their retirement. Second, their income-earning years are behind them.

    • I’ve actually met a few 60+ boomers who are nearing retirement with DEBT and have no pension. They’ve explicitly told me that their house is their pension plan and they intend to pay off their debt after selling.

      • Most boomers I know are loaded and their home equity is an afterthought.

        When you think about, how do you live through a 50 yr boom period, literally a once in a Millenia cycle, and not come out ahead. You have to be doing something seriously wrong. Or be really unlucky.

        But that’s Nature.

      • Bob, I think boomers HAVE done something very wrong: They’ve placed most of their eggs in the RE basket.

        Maybe the boomers you know are especially well-off. I would suggest that the *average* Canadian boomer is comfortable, but not loaded. Strip out the coming decline in their home equity, and add living expenses during another 20+ non-working years, and I see trouble…

  4. People in their 60s and 70s have for the most part reaped the rewards from real estate and see it as a “no lose” proposition. My parents are the same and are in that age group.
    It’s like asking a 14 year old if Justin Bieber is the most talented singer – you have to consider the source.

  5. Boombust gets the BBQ Bingo win!

  6. As a boomer I would expect most other boomers to have a mortgage free home, some savings and some pension income. If they are in trouble they probably have only themselves to blame.

    I fully expect my principal residence will drop dramatically in value over the next couple of years but I’m okay with that because I bought it cheap and I never planned on it being part of my retirement package, those that did weren’t thinking very clearly.

    BTW, I am happy that prices are probably going to drop significantly. It is important that younger people have the opportunity to enter the real estate market if that is their choice. Having people locked out of the market causes unhealthy social stresses which we don’t need.

    • Wait, a boomer being reasonable? Get of these forums! It’s destroying the stereotype.

      In all reality, the boomers with kids in their 20s right now usually understand how difficult things are. My parents point out that they never had to work as hard as I did for such low pay and job security with cost of living being so high. They shake their heads and will take other boomers to task when they complain about how easy kids have it today… And they were the “arrive in Canada not speaking the language and dirt poor” immigrant generation. It’s not like things were a breeze for them getting started.

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