REbelle, REbelle… – “My 17 year old niece told me a bunch of her friends were thinking about going in together to buy a place and instead of renting when they graduate high school.”

“My 17 year old niece told me a bunch of her friends were thinking about going in together to buy a place and living there instead of renting when they graduate high school…
They are all smart so I’m sure they will eventually have good careers but currently they all have part time / summer mall jobs.
I told her it was the worst idea ever on so many levels and thankfully she agreed. Still, it shows you how brainwashed we’ve become.”

an observer at VREAA 30 Aug 2012 8:51am

“I was on the bus recently and overheard a few young girls talking about buying a place when they go to university next year. The usual “rent is just throwing money away” and “I’ll sell it in a few years and make some cash” we’re part of the conversation. Yowza. 18 with a mortgage, a student loan, and a credit card… Sounds like a recipe for disaster.”
Terminalcitygirl at VREAA 30 Aug 2012 10:47am

34 responses to “REbelle, REbelle… – “My 17 year old niece told me a bunch of her friends were thinking about going in together to buy a place and instead of renting when they graduate high school.”

  1. I have a friend that’s in serious trouble. She bought a 1 bdr, 680 sq/ft, 32 year old condo in Richmond May 2011(top of the market). I warned her not to buy at that time. Well, now she has a baby and they need to upgrade. She overpaid for her condo and I see it’s probably going to get her 160k if she’s lucky. Her husband has partial ownership of a home in Surrey. They need to sell both before they could buy again. Both properties have huge penalties on their mortgages if they sell. She tells me they have no option but to buy because the baby needs a room. I told her she will lose at least 50k and she agreed but still wants to buy a TH in Richmond. For 600k!!! I told her she’s crazy!! Because that is crazy!! She will lose money on her condo, and she will lose more if she buys again now. This couple is extremely bad with their financial management. The husband has massive credit card debt and has no financial mind at all. I only talked to them via text and I’d love to show them in person what I mean before they go screw their life even more.

    • Sorry, I forgot to say she paid 200k for her condo.

    • pricedoutfornow

      I think there will be lots of stories like this-many young people in their 20s in the lower mainland bought 1 bedroom condos when the market was hot, hot, hot. Then life happens…marriage, kids and suddenly that 1 bedroom condo just doesn’t have enough space (even a 2 bedroom condo with 2 kids is the pits, let me tell you). Ireland is full of stories of young people who bought small condos in their twenties…and now the market has crashed they are stuck raising their kids in these tiny spaces (or just going bankrupt). When I was in my twenties, people always asked me why I didn’t “just buy! you’re throwing your money away on rent!” I was living in a 1 bed condo at the time for $800/month rent. Now life’s changed and I’m sure glad I didn’t follow their advice….now we’re just taking our time looking for a 3 bed plus place-TO RENT! Waiting till we find the perfect place with a good landlord, or until the market crashes and we can buy with $100k down. Remains to be seen what will happen sooner.

      • I also know a couple in this exact situation. They will be fine; they could totally raise a kid in their place. But it’s not what they would have chosen if they could do it over again knowing they were going to have a baby.

    • it sounds like they were in trouble long before they ended up with an underwater condo in Richmond…financial mismanagement is the gift that keeps on giving.

      • 4SlicesofCheese

        And 0-5% downpayments and easy credit are the enabler.

      • She had put down 100k for this condo. Rich dad hooked her up. Husband is just broke and has some equity in his Surrey home. She isn’t underwater yet. But she just lost equity. She’s so stressed out😢. But buying again is just plain stupid. There are too many people that just don’t know the truth.

      • 4SlicesofCheese

        Well then that is ok, she is not losing any of her own money 🙂

    • You can’t cure (or help) stupid. If this was India, they might be able to each sell a kidney…

    • They’re done for. You can’t help them now. Two mortgages underwater, massive credit card debt, and a baby? They’s done. Period. You can’t help. Their best bet is to declare bankruptcy and start from scratch with no credit for the next 6 years or so. Really, unless they win the lottery, or he’s a crazy inventor about to strike it rich, they don’t have a chance. Any further concern you aim in their direction will be wasted effort. Sorry to put it so starkly, I know she’s a friend of yours, but that sounds like a situation that spun out of control long ago. You really can’t do a thing and should not trouble yourself with trying.

      • Correction:

        I see now that the mortgages are not underwater. If that is the case, maybe there is still hope, however faint. Still, sounds to me like they’re hell bent on extinguishing that hope just as fast as they can.

  2. Vreaa must have a new subcontract with Garth to supply his accompanying images. =)

  3. if you don’t ‘Buy In’ the stress people face from the prevailing majority is ominous. I think it has something to do with HomeOwnership rates, approaching the 70% level. Pet ownership levels are high too, and are positively correlated to home ownership levels. You want a pet right? then buy a house… lots of people crumple under this kind of pressure.

    • If you think it’s tough finding a rental with a pet, try finding one that takes toddlers (and that won’t sell the place out from under you at the first opportunity). The reality of family rental housing in this city has also contributed to the high ownership rate.

      • 100 times easier to find a rental that takes toddlers than finding one that takes a dog. Just use professional property management companies and avoid amateur landlords.

      • Pets are children too (at least in this town)

  4. Just moved into a 2br condo in yaletown. got a mail in my mailbox from bob rennie, saying they are interested in being sellers agents if i want to sell.. they had statistics on their sales ratios till June. July data was missing. they had a chinese agent that speaks mandarin + another agent who doesnt on the flyer in the mail. I am in one of those buildings that doesnt have a 4th floor. Btw Im paying 2000$s in rent, I just found out that the strata fee is 450$s!!!

  5. I’m afraid it’s stories like the one that appeared in the Vancouver Sun today (link below — and this article is in the sidebar on the front digital page too) that just egg the ignorant and reckless on.

    The article says a few things about a “sluggish” West Van market, conveniently without mentioning the 20 MOI and, of course, any predictions of an upcoming crash.

    I’d love to know why this article that features a Realtor and gives her free advertising receives such a prominent place on the Sun website. Oh, wait, let me guess.

    http://www.vancouversun.com/business/commercial-real-estate/West+Vancouver+teardown+fetches+over+asking/7174412/story.html

    • Looks like a “marketing” purchase. Maybe they are trying to create a buying frenzy.

    • pick and choose your bias. MSM is too crafty for words. Want to convulse over MOI? plenty of info to be had. One local realtor I know in Courtenay has sold 10 places this year, averaging a little over 1/month. He’s currently showing 18 listings as of August 31. In my view that’s an enormous amount of real estate to plow through if your sales are only 10 this year. I can cite the realtor, and publication where I find this, but who needs negative attention? Or, closer to Van, you can look at the massive listings that have hit the Squamish market. I’m hearing numbers as much as 40 months of inventory. Ouch!

  6. Is it just me, or does the Sun always disable the comment section on their Real Estate “News” stories?

  7. @YVRHousing
    What’s your call on August sales? I came up with following:

    Sales: 1710 to 1740
    Y/Y Change: -26% to -28%

  8. As Garth is fond of saying: “Never, ever enter a home ownership arrangement with someone you’re not sleeping with.”

    So, either these girls are all making a huge mistake…. or they’re all sleeping together. These days, you never know.

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