“I personally know of a young woman in her 20′s who just got her first job and refused to rent. Her parents forked out the 25% down for a condo in South Surrey as she did not qualify for CMHC financing.
She purchased a one bedroom with a flex space, once she moved in she was astonished at the extra monthly fees she has to pay. She had her boyfriend move in to help with the payments and now has foolishly went out and got a dog.
6 months later from the original purchase she now finds herself in a space that is too small. Now she wants to rent (yes rent) a larger place (2 bedroom) closer to Vancouver.
To make all this happen she now has to find a tenant for her South Surrey condo.
It seems that Gen Y looks at condo buying as a fashion accessory and not a prudent financial decision. There is a serious lack of financial literacy amongst the marginal buyers of real estate.”
– DJB at VCI 20 Nov 2012 9:21am
Why isn’t she selling the condo?
She’s holding on the assumption that its market value will rise.