“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.”

“I was 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.”
chibidani at VREAA 1 Aug 2012 2:14pm

2 responses to ““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.”

  1. Canada’s Housing Bubble Blow Out Amid Global Collapse

    http://comiterepubliquecanada.ca/Canada-s-Housing-Bubble-Blow-Out

    • Leo – Truly Amazing Article. Thank you for sharing.

      Interesting quote from the article below, which if true headlines gov’t concern of large scale default. This would seem plausible, as it backs up gov’t push for tighter rules against political blow back for clamping down.

      “Insiders in the Canadian government have revealed to this author that during internal briefings, Mark Carney himself has pointed out that should even a small increase in interest rates occur, an immediate 10% default of houses across the board would follow resulting in a vacuum much greater than its $110 billion dollar nominal value.” — Matthew Ehret-Kump

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