“Now they want to sell and buy a bigger place closer to her job. They will be down tens of thousands.”

“Know of a couple purchased 1 one bedroom in Vancouver for $430s.
This was back in 2010 and they were just getting married at the time.
I know the wife and told her I didn’t think it was a good idea since they didn’t even have a downpayment.
They were so worried about “buy now or be priced out forever”, went to his family for a loan for the 20%.
Fast forward to this week. Couple now has a 1yr old and the place is feeling too cramped. On top of that her job situation is changing and she needs to work in Burnaby.
Now they want to sell and buy a bigger place closer to her job.
They will list the unit for $419K to start.
They’ll be lucky to get $400 and minus the transaction costs, will be down tens of thousands.”

kansai92 at VCI 9 Aug 2012 12:08pm

8 responses to ““Now they want to sell and buy a bigger place closer to her job. They will be down tens of thousands.”

  1. Welcome to the real world beyotches…
    Now they work for the man… which means the bank… “buy now and work to pay off for your stupidity forever.”
    That’s the Millenium Mantra.
    Just proves youth is wasted on the young…

  2. It shouldn’t matter much. Homeowners are compensated for this risk because buying is cheaper than renting, right?

  3. This is an example that will resonate with a lot of people. Settling for a smaller place for more money does not immediately feel disastrous (otherwise no one would do it). Only with a few years (babies, jobs, prices) does the error set in.

    This anecdote applies for any condo purchase post 2006.

  4. C’mon, it’s just money, easy come easy go, you can’t take it with you….nothing compared to the joy and pride of ownership this couple felt in the last year.

  5. We just signed a lease for a 2br in downtown vancouver for a year… we are paying 2000$ rent, and the owner said they listed it for 489 at first and then dropped it down to 459 and there were still no buyers.. so they decided to hold and rent it out.. they were moving to California.. good for them!!!! they can probably buy a full house in california if they are able to unload this 2br condo. Anyway.. what 1br in downtown can possibly list for 420k when a 900 sqft 2br lists for 460k and doesnt sell?

  6. A good sign of the personal turmoil to come. A young family out tens of thousands. Strain of inter-family borrowing, again for tens of thousands. Just one of many many.

  7. I have relatives who are driving hard toward a very similar situation.

    This thing is going to (is starting to) affect real people. I know that a theme on this blog is “everyone’s a speculator.” But I have some trouble swallowing that in the case of people just trying to make a go of it with, perhaps, imperfect information. Or worse, media/real estate industry propaganda in their pocket.

    To those that have spent the past few years really spec-ing by buying up condos and houses with massive leverage just to flip, flip, flip: I could care less about your upcoming financial ruin. There’s that old adage of playing with fire and getting burned.

    To those that are caught up in this while just trying to live life: I’m sorry for what’s about to happen to you. And I hope that you can pull through somehow.

    I’ve seen it among friends and others during my time in the USA. And now I’m seeing it among friends and family here in Canada. Perhaps I was lucky in that I saw the US meltdown. But, I also took the time to internalize that lesson (as a renter on the sidelines at the time). Sadly to say, most folks have not had the same experience and rely on Global and the REBGV for their information.

    • Agree.

      Thats what so perverted about this bubble.

      It shouldn’t be necessary for someone to become a pseudo financial analyst before deciding to buy a house. Its important to do your due diligence on any large purchase, but its unfair to families that just want to live life to have to understand the multitude of market forces affecting the market.

      Its supposed to be a boring asset class that moves at a snails pace. Its not healthy when the market jumps 10% in a year or plungers 10% in a year.

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