“Don Forsgren has heard pundits speculate that Vancouver home prices will drop by as much as 40% during the next five years – but he’s not having any of it.
The Intracorp Canada president recently committed to buying two units in his company’s MC2 development near southwest Marine Drive and Cambie Street. Another 18 units in that project have sold to insiders while the remaining 425 condominiums will be made available October 27 to the 6,500 people who have registered to be eligible buyers.
The purchases are the fifth and sixth properties that Forsgren owns and plans to rent.
“Vancouver has a good base level of demand from immigration and population growth,” he told Business in Vancouver. “That’s not going to change over the long term, so we’re quite bullish about the prospects of the market from a stability point of view.”
That bullish sentiment is clear from the spate of Metro Vancouver housing projects that Intracorp has in the works, many of them near transit hubs”…
“Our target is to do about 1,000 homes each year in Vancouver and about 500 in Toronto. We’re on track to do that in 2012, 2013 and 2014.”
– from ‘Don Forsgren: Home maker’, Business in Vancouver, 23 Oct 2012.
We suspect that, unlike the case of the man-in-the-street investor/speculator, the housing market could tank and Don would still be fine despite his advertised RE holdings. Those 6 units are surely purchased cheap, and likely represent a risk of only a small percentage of his net-worth. A bit like a chef dining at his own restaurant, a clothing chain CEO wearing his own suit brand, or a car dealer driving his own stock.