16-Year-Old High School Kid Offers RE Advice – “There’s a lot of money to be made in Vancouver. Just buy a house, rent it out, and in a few years you can buy another one, or maybe a condo. It’s a great investment. You should definitely look into it.”

“I was in Vancouver last year and we went hiking near Deep Cove (lovely area). During our hike, we met two 16 yr old kids from Van who were hiking on the same trail. We hiked together for over an hour, just chatting. We ended up giving them a ride all the way back to Van because they didn’t have a car, or a drivers licence, they were going to take 2 or 3 buses to get back. Anyway, in the car the most talkative and assured of the two told us : “There’s a lot of money to be made in Vancouver. Just buy a house, rent it out, and in a few years you can buy another one, or maybe a condo. It’s a great investment. You should definitely look into it.” The kid was great but I couldn’t help seeing this as a perfect “shoeshine boy” moment. When a high school kid is giving you unprompted investing advice, just do the exact opposite and you’ll do just fine.”
Nick at VREAA 20 Sep 2012 12:20pm

Agreed, a shoeshine-boy moment.
In fact, this is the most extreme such example we’ve heard from our bubble.
(Who is there left to recommend housing? Toddlers? Pets?)
– vreaa

This comment followed Nick’s:
“This is pretty much how most under-25 born and raised in Vancouverites seem to think. Conceptually, they can’t ever imagine leaving Vancouver (best place on earth syndrome) but they also recognize it’s far too expensive a city to live in, especially if you’re starting out in life (even with rich boomer parents to subsidize a real estate purchase.) They have to buy in to the real estate bull mindset otherwise prospects are very depressing.”
Cranston Snord at VREAA 20 Sep 2012 3:39pm

29 responses to “16-Year-Old High School Kid Offers RE Advice – “There’s a lot of money to be made in Vancouver. Just buy a house, rent it out, and in a few years you can buy another one, or maybe a condo. It’s a great investment. You should definitely look into it.”

  1. I am in my early 30s and I know a lot of people in their 20s and it is true that young people today believe you can’t lose with real estate. If you are a younger person who is bearish on real estate, life is very lonely. Try explaining to a 25yo that real estate doesn’t always go up and that it is cheaper to rent than buy and they will look at you with utter disbelief. I am dismissed as an eccentric almost crazy person by my peers all the time because I choose to rent. To those in their 20s, being a renter after you are finished university is to be a complete loser. I told one of my friends that I have a new boyfriend. Before even asking what he does for a living, she asked if he owns property or if he aspires to own property. I didn’t want her to think I was dating a loser so I lied and said, “Yes, he is saving up a down payment to buy real estate.”

  2. Forget RE, there’s a better business opportunity just around the corner: career counselling for unemployed Vancouver realtors.

  3. My cat is very bullish on Vancouver RE.

  4. the densification comment was one of the better things i read this weekend

  5. My friends are all artist types. They don’t have any debt, but they don’t have any money either. Though in their 20’s, they know re in Vancouver is ridiculous and have believed the crash is happening for a long time.

    My extended family is quite another story. But they’re all bulls regardless of age.

    If anything, I hope this crash discourages the younger generation of relatives from their dreams of easy money through becoming realtors…

    • “they know re in Vancouver is ridiculous”

      An artist friend of mine who works in New York as a concert pianist commutes from Jersey, another part-time artist who also teaches at an arts school in Manhattan rents somewhere on the island (not sure where). He told me he doesn’t even bother looking at real estate, the city has too much to offer to worry about buying something obviously unattainable. Guess New York is so good that people don’t need to own it.

  6. Since the govt & banks have so little ethics… if there is a big drop of 20% pricing within 1 yr, I am sure they will come in and do sth about it..

  7. Thanks Vreaa.

    I have another interesting anecdote. I’m originally from Montreal. I recently told a few of my old friends there that I had just sold a duplex I had bought in 2006 in an up-and-coming part of that city. They were shocked beyond words : I swear they looked at me like I had just told them I’m planning on marrying my own sister. You could tell they’ve NEVER heard of a young thirty something guy like them selling property. My generation is BUYING and cherishing real estate, not SELLING it.
    Another of my friends told me he got the same look back in 1996, when he bought a duplex in Montreal. People couldn’t believe he would invest in real estate, which had been loosing value for almost a decade at that point…
    It’s just human nature. People feel vindicated when they are with the majority, and can’t understand the “risk” you are taking if you do things differently.

    • I remember one of the great anecdotes from 1996 Montreal was Americans wondering who this “A. Louer” guy was… According to the Yanks visiting the city, he seemed to be the biggest landlord in Montreal since his name was on 20% of properties… (BTW, A Louer = For Rent…)

  8. “Guess New York is so good that people don’t need to own it.” – Maybe BPOE will change the slogan to Vancouver is so good, just rent! I am by no means de-meaning renting, but basically if you look at the average income etc, I feel most people on an average salary with no family help, have little choice if they want to stay in the city. But in the Stats Can report last week they said more and more young people are living with their parents longer than ever before.

  9. CBC’s Philip Chan has another open house scheduled for his Kits triplex on Sept. 30th.

    Can we make this a VREAA field trip?

    Brownbagged beers on Kits beach beforehand would be in order

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