“I have continuing conversations with a friend who spent just under 1 million for an East Van home…”

“I have continuing conversations with a friend who spent just under 1 million for an East Van home.
6 months ago he thought prices would never come down for detached homes in Vancouver.
3 months ago he admitted that West side home had come down but not on the east side. After all, the west side was overvalued compared to the east.
This month he talked about re-financing their mortgage so they could take on more debt and do more renovations on their home.
sigh.”

b5baxter at VREAA 12 Mar 2013 10:28am

7 responses to ““I have continuing conversations with a friend who spent just under 1 million for an East Van home…”

  1. 1) find a house
    2) add suites
    3) sell it for a profit

    Adding suites, as asinine as it sounds, has made people money, even factoring in land value. Even today some people I know are looking for easy button investments in local RE. The corollary is there’s $ to be made converting properties to higher utility, because it appears a lot of the cash isn’t willing to do much work.

  2. Ralph Cramdown

    The homeowner in the anecdote is ahead of the curve. In the US, after the initial shock of the housing crash and owners’ realization that they wouldn’t be able to move anytime soon, reno work increased, as people adapted homes they’d formerly have traded. Extracting the equity now might be wise, for if home values continue to decrease or lending gets tighter, it won’t be possible later.

    Of course, you have to be absolutely committed to living in your current house for five, ten or twenty years.

    • Committed for a life time life time unless bankruptcy

      the term mortgage comes from the Old French words mort, “dead,” and gage, “pledge.

  3. Makes me wonder if some people are absolutely committed to stay in Vancouver for the next twenty years, or that they’re stuck with a 7 figures lemon that they’re trying to make lemonade out of.

  4. living in Vancouver for 20 years…thats a scary thought….wasting 20 years of your life when there’s real cities out there

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