Bob Rennie is the quintessential salesman and like most marketers he knows how to talk his product up. Here he is expounding on the wonders of Vancouver condos on the Chinese news site xinhuanet.com. This follows the template of most of his ‘news’ releases but includes one very interesting quote about the post-games market here in Vancouver:
“I’ll guarantee it won’t hurt our values. I’ll guarantee it will maintain our values. The frightening part is if values go up too much. We don’t have financial sector head office jobs, no manufacturing. If we are basing things on local incomes, how does housing keep up with local incomes if we have a shortage? We have to be very careful on the affordability side.”
This is a very generous offer. If anyone has the financial resources to ‘guarantee’ that your condo won’t drop in value it’s Bob Rennie. This could be exactly what anyone who fears the fallout of a housing bubble needs to get them to buy property in Vancouver. After all, many people are leery of buying in a market where prices are near record highs and there are no ‘financial sector head office jobs’ and ‘no manufacturing’, particularly when that city has a history of volatility in house prices and has seen market crashes of up to 50% in the past. Watching people in cities around the world go into foreclosure or make mortgage payments that are far beyond the current value of their property doesn’t exactly instill confidence either, even if it IS different here.
I’m not sure exactly what the contract on this deal would look like but I imagine that you’d ‘lock in’ your purchase price and it would be held on record for any future point you decide to sell. If the market goes up, you’ve made free money. If the market goes down, I’m guessing Bob Rennie would write you a cheque to cover the difference between your purchase price and the price you were able to sell for.
Nah, that’s just silly… he’d probably have an employee write you the cheque.
I’m not sure if there are any catches, but with a deal like that how could you possibly go wrong?