“One of my old high school buddies finally got her mother to sell the family home in Kitsilano – sold for over $1M, monies realized after debt paid off $185K.”

“One of my old high school buddies finally got her mother to sell the family home in Kitsilano – sold for over $1M, monies realized $185,000. Home equity loans and “helping” out the kids does take a toll.”
ex-kitsie at VREAA 30 Mar 2013 3:17pm

Even longstanding owners are speculating on future price strength.
– vreaa

41 responses to ““One of my old high school buddies finally got her mother to sell the family home in Kitsilano – sold for over $1M, monies realized after debt paid off $185K.”

  1. ‘Rihanna spotted at Wal-Mart in Kamloops’
    Vancouver Sun, 1 Apr 2013

    Discuss possible bullish implications for Vancouver RE.

    • Hmmm. You must have been watching that huckster from Royal Lepage on BNN this morning. The man was an absolute genius at finding silver linings. If sales were down somewhere it was bullish. If sales weren’t down it was bullish. What a great time to buy a home!

      • Ralph Cramdown

        I had Soper on in the background. He did say that prices are a trailing indicator, and they typically fall six months after volumes do. Of the people in the industry, I find him more realistic than most. Maybe it has something to do with being an officer of a public company.

    • very bullish if someone can figure out what he’s singing (y’a-t-il un creole icit?) … http://tinyurl.com/c5p6hac

  2. WTF

    [World Tennis Federation? -ed.]

  3. To be fair we are talking about Kitsilano here. We have to have our new Beemer and doing that every year or two eats up a good chunk of HELOC. And have you been to LuLuLemon lately? If not, you just do not understand.

  4. That’s what we call in my business “sensitive”.

  5. UBCghettodweller

    Ever since moving to Vancouver, I’ve wondered what fraction of the economy has been driven by HELOCs based on on paper valuation of houses?

    I know a lot of people move here when they’re in their high net worth years, and there’s the always discussed HAM, but the number of people who should be “middle class” based on their jobs that live quite a bit more luxuriously than middle class people I’ve seen elsewhere in Canada has really surprised me.

    • Cyril Tourneur

      I agree, wish we could get good data on this. My hunch is that there are more than just a few here in Vancouver “consuming” home equity.

      • Ralph Cramdown

        I actually don’t have a problem with equity withdrawal in theory… for older people. Ideally, people would be able to buy a house on credit when they’re young, pay it off at some point in their peak earning years and use it as a store of value through retirement, eventually dying broke. The problems are that nobody knows future interest rates, home prices or individual life expectancies, so lending against equity with no payoff until death entails risk, which costs.

        …and this doesn’t apply to younger people.

        I’d love to see aggregate flows data of money into/out of real estate.

  6. Friends of ours bought detached property a few years ago. After that, they are pay cheque to pay cheque. No money left over to contribute to RRSPs, TFSA, or RESPs. They spend every dollar they take in. I ask them what are their plans for retirement… their answer, inheritance.
    Now here’s the kicker, found out from the sister of the wife that turns out the parents whom they expect inheritance from are avid gamblers. They have decent pension but they also spend every last dollar at the casino. Not to stereo type, but it’s a Chinese family for what it’s worth.

    • It’s okay the inheritance is in real estate holdings. /sarc

      • well its also a big family so dunno what would be left over after it’s been picked through by the siblings.

    • Chinese people just need to show off. I am Chinese myself and so is my wife. When I tell my parents I bike to work they’re like: what?? You’re a doctor!

      In the end, it doesn’t matter. Because I will be the one laughing to the bank when this whole charade blows up.

  7. They got a measly 185k after all was said and done?? That’s not even enough to buy back into the hood again. Hope it was worth it.

  8. Considering that they owed $800k, it may be for the best that they sold now and paid off the debts. May not be worth $800k soon, plus they were paying debt service on all that every month.

  9. did you buddy mention how much $$ he took from his mom since there was “helping” out the kids” fund?
    and by the way, one seller does not represent all “longstanding owners “.
    Please report the whole story or none at all.

    • an·ec·dote
      1. A short and amusing or interesting story about a real incident or person.
      2. An account regarded as unreliable or hearsay.

    • Please report the whole story or none at all.

      It would be nice if REBGV followed this rule…

    • Ralph Cramdown

      Fred, I suspect your budget for investigative reporting is just as big as vreea’s. Please feel free to contribute to our continuing enlightenment.

    • Washed up Canadian

      There used to be troll called “Fred” on this board a few months ago.
      With all due respect, let us know if you are the same person.
      BTW, old Fred had an irrepressible entertainment value

  10. Seeking knowledge...

    Buying $1m home in this climate? I presume it’s an old-timer that will require repairs or a tear down. I wonder how long before the new owner figures he/she overpaid?
    I shouldn’t talk, I bought Lucent shares when it fell from $70 to $50 during the boom thinking it was a good deal For the record, it’s trading at less than $1 post-reverse-split 😦

  11. What a lot of posters don’t realize is that Kits, up until the late ’80s, was a very blue-collar neighbourhood. Older folks didn’t have the means to save a lot for retirement and families were typically quite large – 4 to 6 kids or more. We had a family up the street, house on a 25′ lot, with 11 kids all going to St. Augustine’s School – at the time the bottom of the barrel in terms of education. The kids didn’t end up in university or even graduating because money was always tight. That scenario was not unusual. There were also many immigrants in the neighbourhood, living crammed three families in a house. Times change.

    • UBCghettodweller

      My cousins tell me about how Kits was still pretty bohemian and counter culture in the mid-90s when they first moved to Vancouver. Apparently it was a relatively cheap and happening part of the city to live in for 20-somethings with decent jobs then.

  12. I am a long-time resident of the Kits/False Creek South area and can recall when it was much more blue-collar, even industrial in many areas. But that has been largely replaced by my Beemer and botox crowd. I now rent, having a sold a few years ago, and plan to own again in a few years. So I follow the market in the type of place I might be interested in buying.
    What I wonder is how much of a premium should I pay for the location and my desired LuLuLemon and latte lifestyle? I also follow part of the North Shore market for family members and it seems Kits/False Creek S has a premium of up to 30-50% over comparable North Shore properties. I doubt that sort of premium can last.
    I was recently speaking with a German couple who moved here and bought a lovely place in Yaletown, the new hip cool part of town. They hated it and sold, at a loss, and with the remainder bought on the North Shore. They love the North Shore (West Van is full of Germans), love that the outdoors is literally out the door and downtown still only 15 minutes away. If it is possible to find more of what you want, for less, outside of the coolest parts of Vancouver, then how long can a huge premium last?
    This is just an internal version of the BPOE premium, which I am also willing to pay. But, just because I am willing to pay a premium, that does not mean the premium can increase to infinity.

    • UBCghettodweller

      > But, just because I am willing to pay a premium, that does not mean the premium can increase to infinity.

      I like this, I like this a lot.

  13. I was in a Starbucks in Kits today listening to two very Vancouver ladies talking RE. They were talking about two couples they knew who had recently bought a lot and planned to each build a house on it and live as neighbours. These ladies were concerned because on of the couples were heavy pot smokers. They wondered how the other couple would feel having clouds of dope smoke wafting in through the open windows on warm summer evenings. I just looked at my wife, who had been listening intently as well and whispered TWEB. (This Will End Badly)

  14. i recently heard to very Vancouver ladies arguing who’s neighborhood was more world-class or something, Coal Harbour or Yaletown, to these 2 ladies
    Vancouver is absolutely the most desirable and sough-after place on earth….was thinking these 2 have never left Canada, obviously never been to a real city like New York

  15. Vancouver only industry is Marijuana , gee isnt that a sign of a world class city

  16. Washed up Canadian

    Most people I know, and I know a lot of people, are conveniently using HELOCs for day to day expenses, vacations, and get this, pay their mortgages.

    • UBCghettodweller

      How in the hell does paying a mortgage with a HELOC work? It’s like proposing to fill two swimming pools by pumping the water from one full one in to the empty one and then back again.

      Or am I missing something?

      • Real Estate Tsunami

        It’s simple: you are paying off older, cheaper debt with new more expensive debt. genius. Let your house lend a hand. You’re richer than you think.

      • Ralph Cramdown

        If by ‘work’ you mean ‘eventually own the house free and clear,’ then no, it doesn’t. But you can stay current on all your payments and not get dings on your credit rating, while slowly converting amortizing debt into only-have-to-pay-the-interest-every-month debt. I suppose this would even be an optimal strategy if the ower believes that either there will soon be big time inflation, or his personal income will be going up considerably in future.

      • Maybe they are following the first part of the Smith Manuever or Garth’s strategy of turning non-income tax deductible debt into that good income tax deductible debt? 😛

    • Like most debt spending ‘strategies’, it appears to ‘work’ when prices are climbing at an abnormal pace (less earnings have to go into monthly payments; more spending money; all while paper net-worth appears to stay stable or climbs). Completely ridiculous, we all know, but that’s the way people have seen it. When prices weaken, or simply stop climbing at the atypical pace, everything unravels.

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