Just cuddle up.

Here’s one way to deal with overpriced housing: share your home and mortgage with a friend or stranger! You get all the comfort of renting with roommates combined with the excitement of being responsible for repairs!

“I learned it from Sesame Street,” said Rob O’Dea, who co-owns a heritage-style home in Strathcona with his wife, Sharon Petty, and a close friend, Chris Allen.

It may not be popular -it may even be downright frightening to think about -but sharing space, land title and financial responsibilities can work.

“It’s kind of like getting in bed with someone (or more than one someone),” said Ryan McKinley, Mortgage Development manager for Vancity: it’s probably a good idea to be on the same page as to what kind of relationship you’re committing to.

McKinley has helped plenty of odd couples -sets of couples, parents and kids, siblings, single friends -get into the market with non-traditional “mixer mortgages,” but he cautions that an air-tight legal agreement is part of the deal.

“It’s definitely more commonplace today, and it was born out of necessity. If you are going into a single, detached house in Vancouver you either need a significant income, an inheritance or a friend who is willing to make an investment with you.”

Anybody know what SFH is supposed to stand for?

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patriotz
Member
Active Member
Safe as houses? That loud knocking is falling prices For the pessimists, the question is how far prices will fall, and for how long. Sample prediction: Toronto-based Capital Economics sees a decline in prices of up to 25 per cent in the next three years. The negative outlooks for housing are based primarily on factors such as prices, income growth and interest rates, all of which are a function of current economic conditions and thus short-term in nature. A long-term concern for housing values is Canada’s changing demographics. The fastest-growing component of our population comprises those who are 65 and older. In other words, people who are going to be selling houses over the decades ahead and doing very little buying, if any. That’s bound to affect demand for homes and the potential for price appreciation. For an actual real… Read more »
crabman
Guest

From the article:

When you start this kind of a relationship, said McKinley, you have talk about what happens when -not if -tough stuff comes up: couples divorce, partners die, someone becomes unemployed, ill or disabled.

Sometimes people just don't get along. What if one person wants to cash out and the other doesn't?

How much you wanna bet there is no "what if prices fall 50%" in their agreement?

southseacompany
Member
southseacompany

Sun prints the other side of the argument;

http://www.vancouversun.com/business/Vancouver+re

Anonymous
Guest
Anonymous

Globe and Mail

At noon PT (3 p.m. ET) on Tuesday April 26, Vancouver-based reporter David Ebner will host a live discussion with John Lichtenwald, owner of Metro Vancouver Properties — a collection of seven Re/Max offices in the Vancouver region.

http://www.theglobeandmail.com/report-on-business

Right on
Guest
Right on

Sun prints the other side of the argument;

http://www.vancouversun.com/bu…..story.html

Wow! Is this guy going to keep his job now…because he clearly gets something that goes against the paper`s revenue sources!

I am going to try to find his email and send him a message of thanks – finally, something refreshing in the sun!

chip
Guest
chip

I know Vegas has been flogged to death here but I couldn't pass this up:

"Almost 70 percent of Las Vegas-area homeowners with mortgages were underwater at the end of 2010, meaning they owed more than the value of the property, according to CoreLogic Inc. (CLGX), a Santa Ana, California-based real estate information company."
http://www.bloomberg.com/news/2011-04-26/wealthy-

Prices now down 58% from the peak and still falling. The median is a cool $125,950.

Jaap
Guest
Jaap

and how many people will be your friends after 30 years?

raise your hands if you have had friends for over 30 years, and have never had a bad episode during that time…

jesse
Member

Gord Goble, we know you're reading. Thanks for the op ed, and thanks for the Vancouver Sun for publishing it.

Now, advertisers, pony up some more ad revenue if you want a rebuttal… 😉

pricedoutfornow
Guest
pricedoutfornow

@Right on:

WTF? An article in the Vancouver Sun that mentions "bubble"? And suggests that devaluation is about to occur? Is this a late April Fool's joke?

I'm sure this guy is getting a lot of hate mail.

I'm just thrilled to see this article!

Bailing in BC
Guest
Bailing in BC
I know an example of this "cuddling up" that went horribly wrong. In the late 90's some friends, an married couple and a single got together and bought a townhouse in Pemberton. They had no legal advice and had not even discussed the "what ifs". All was well until the single got married and moved out. The married couple was forced to rent the rest of the townhouse from the former single which they could not really afford. Soon the former single and new wife wanted to buy their own house and needed the money from the townhouse. Unfortunately the married couple could not get a mortgage for the other half of the townhouse and so were forced to sell. Even more unfortunately the value of the townhouse had gone down since purchase and they all took a bath. Needless… Read more »
Anonymous
Guest
Anonymous

@southseacompany: Reads like someone from here wrote it, or lifted a few choice quotes. Are the MSM finally awekening?

Anonymous
Guest
Anonymous

Anybody know what SFH is supposed to stand for?

A meaning already lost in places like Vancouver and Victoria, where SFH means one or more suites in the basement or attic to help pay for the "starter home".

The last two anons are Devore, way too lazy and full of turkey to log in.

Advice
Guest
Advice

@southseacompany: Reads like someone from here wrote it, or lifted a few choice quotes. Are the MSM finally awekening?

Exactly! The argument is too polished for the standard Vancouverite, even though he outlines common sense arguments (like how realtors have a vested self-interest).

Is VHB this Gord fella?

patriotz
Member
Active Member

@Advice:

Is VHB this Gord fella?

I am Gordicus.

😉

Frank Reader
Guest
Frank Reader

I hope they won't pull the article down soon. I can't see link from to it from the top tier-section Business, RE, etc. though.

mohican
Member

@patriotz:

I am Gordicus!

Classic

PS – a very well written piece.

Bubble Lad
Guest
Bubble Lad

Here's another side to that strange article (strange even by Vancouver standards!).

I've noticed a ton of FOR RENT signs in the last few months. Is this a coincidence, or did the end of the 35 year mortgages scare the last renters into buying?

Since it seems like all those Vancouver "garden suites" (translation from Vancouver-ese: "basements") are now in want of tenants, how are all those "SFH" owners, already stretched past the event horizon of debt, supposed to pay their mortgages now that all the "filthy renters" have vanished?

Is this one more missing piece of the puzzle?

Patiently Waiting
Member
Patiently Waiting

@Bubble Lad: When you have perfectly nice apartments in North Burnaby offering a free month's rent, homoaners with basement dungeon hellholes are screwed:

http://vancouver.en.craigslist.ca/bnc/apa/2347250

How sweet it is. 🙂

Patiently Waiting
Member
Patiently Waiting

Or better yet, "move in allowance" in freakin Kerrisdale.

http://vancouver.en.craigslist.ca/van/apa/2347386

Anonymous
Guest
Anonymous

We've seen these nonsense self-defeating arguments before. Like, "if everyone sold and rented, who would you rent from?", uh, duh? Spend 10 seconds thinking through that one. On the other side of the coin we're told everyone should be buying their own house, but then who will be left to be a "mortgage helper"?

Bubble logic does not make sense, that's why it is a bubble. You don't even need to scratch the surface to see past the BS, which is all the more surprising. Just goes to show how powerful mass psychology and emotion are, and how easily logic, reason and facts can be dismissed.

real_professional
Member

Yes most of the bullish arguments have been very unintelligent eg: There are a billion Chinese with a goal of coming to Vancouver, Real Estate always goes up, Buy now to avoid being priced out,…

The bearish argument is usually supported through facts: economic history, mean reversion and standard deviations of important financial ratios, owning relative comparisons to other markets, strength of the economy, etc.

I would say the bullish argument is a mile wide and an inch deep but even that would be overstating it. It is more like an inch wide and an inch deep.

Right On
Guest
Right On

A poster by the name of "Alex" over at Garth's site is taking credit for the Vancouver renting piece. Its still a great article, but a little disappointing that one of the converted is posting it. It would have been all the more refreshing to have a newbie to the dark side write the article. That being said, I still cannot believe that the Sun posted it. The senior editor must have been away on Easter vacation.

__________________

Well, they printed my Cam Good rebuttal.

http://www.vancouversun.com/business/Vancouver+re

My thanks to Garth for turning me into a blatant pimper of the dark side. I only hope I got all my facts straight.

Problem is: How will I win my Global CRTC complaint now that the mainstream media is being so much more neutral?

gordholio
Member
@Right On: Hi everyone: So, I sold my house several months ago – to escape the mortgage – and then wrote a piece that was published here in which I cried like a little girl how I couldn't afford to buy anything locally with the cash proceeds. Most of you sympathized, but I was rightly flayed by others for selling at an opportune time and then being such a little bitch about the market. Looking back, I understand the sentiments. Anywho, I've been obsessed ever since with giving the MSM hell for "filtering" real estate news. Several weeks ago I filed a complaint with the CRTC/CSBC over Global's infamous handling of the Asian in helicopters and trumped-up Burnaby condo line-up stories. And I'm always firing off emails to various editors. But the Cam Good "Get your real estate groove on"… Read more »
Robespierre
Guest
Robespierre

This initiative better be successful otherwise we'll be all back to the stone age.

"RUFH has started a petition in favour of the hospice and so far has collected 258 signatures and will be collecting more until May 31. The UBC Board of Governors meets in early June to decide on the issue."

"If UBC allows 30 rich Asians to control the use of property that affects about 7,500 other campus residents and the rest of Vancouver, it means sacrificing mainstream Canadian values of care and respect for sick elderly for the financial gains of a few."

Read more:

http://www.vancourier.com/news/residents+determin

Right On
Guest
Right On

#23

Gordholio

A big thanks for taking the time to challenge the mainstream media and for writing a thoughtful, succinct and insightful piece!

It was truly refreshing to open up the editorial page of the Sun this morning with colleagues and point to a balanced and informed counter-argument to the RE pumping stories.

Please keep up the good work!

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