That’s a bit dramatic isn’t it?

This piece is hardly a revelation to anyone familiar with a calculator, but it’s refreshing to see such title on Business Insider: Why I Would Rather Shoot Myself In the Head Than Own a Home.

How do banks make money? Very simple. They borrow from you at cheap interest rates and then lend to you at higher interest rates. What? How do they do that? Well, when they pay you 0.5% on your checking account its as if they are borrowing from you at a very cheap interest rate. When they then turn around and give you a 6% mortgage loan, they are lending to you. They make money on the difference between the 6% and the 0.5%. It’s a great business and I often advise people to become the bank when they have that opportunity.
It’s such a great business, in fact, that banks have spent 200 years drilling it into us with billions in advertising that the “American Dream” is to own the white picket fence, the paved driveway, maybe borrow more to make an extension to the house. Put in a swimming pool. Tear down some walls. Nobody can ever kick you out. You’re not flushing your rent down the toilet. You’re owning! You’re keeping up with the Joneses (the most successful, yet mysterious, family in American mythology, that we all have to keep up with. What happens behind closed doors when the beatings occur, when little Bobby Jones cries himself to sleep, the Joneses will never tell us) At least, in 30 years you will own. But at least you’ve fixed in a mortgage rate so inflation won’t kill you. And having your own home means you now have “roots”.

Read the full article over at Business Insider.

44 Comments
newest
oldest most voted
Inline Feedbacks
View all comments
ripper
ripper
9 years ago

This blog has changed….. not too long ago the very whisper of 'this race or that' would have had the pathetic PC lapdogs howling in protest. There would have been barking catch-phrases of 'rascist…bigot etc etc ' …….and now you people are actually able to entertain the idea that ther is a differance between race and nationality…very grown up. Has it been the demise of the Liberal Party? Is it the Vampire Effect…like when the head vampire dies all the thralls shake off the hynotic effects of the master? I'm glad the discussion has become more open. If people use politically correct catch-phrases to run a country then well…….we get into the mess we're in. Now……since it's the last day of the world…..I'll get back to my popcorn and wait for the 'big show' to begin. Does anyone know what… Read more »

Patiently Waiting
Patiently Waiting
9 years ago

@Anonymous: umm the half the street is art galleries "by appointment only" and its on the doorstep of Shaughnessy. It may not be flashy like Robson St. but its the local retail street for the elite.

Bubba
Bubba
9 years ago

10 year bubble ? No…the reality is like tectonic plates…..slow….. but watch out when it lets go…. Eventually the local population will wake up and say enough is enough…F*ck this and change the rules….that's the X factor. The Local Gov'ts are simply pandering to offshore piggybank. Really,..who is gaining from this? A select few, not the majority Look at the average age of your politicians…simply lead edge boomers and greedy c*nts the lot of em. Most of these decision makers (elected and their bureaucrats) are retired or soon will be…they don't give a shite for the rest of us. I am sure there is a special leaky condo in HELL reserved for most of them…Satan will make sure of no line- up or pre -sale worries The housing market is beyond glutted,unsustainable the inventory will soon be measured in years,… Read more »

Emigrant
Emigrant
9 years ago

“There were no Canadian cities on the Top 10 list of investor-friendly cities: Tokyo, Singapore, Hong Kong, Seoul, Shanghai, New York, Washington, Los Angeles, London and Manchester.”

http://www.ctv.ca/generic/generated/static/business/article2024661.html

Li Kai Shing
Li Kai Shing
9 years ago

17

sore loser

========

If cannot trust your Gov’t and Banks …..who can you trust ?.

I think you are Bob Rennie

Li Kai Shing
Li Kai Shing
9 years ago

35

Anonymous Says:

May 18th, 2011 at 4:26 pm

Last couple of days, Mingpao reported a woman fined $2,500 at YVR airport for undeclared contraband including 12 live crabs, duck’s tongues, prawns and lard.

=============

What assholes…

I stuff my pant with Kraft dinner and Barry Manilow 8 tracks

YVR security laugh so hard when I sing "Mandy" and "Copacabana" ,then I run faster than Ben Johnson to cab

Work every time

If you not lead dog in pack ..view and smell the same dumb round eyes…

Anonymous
Anonymous
9 years ago

@Patiently Waiting: …also noted a few empty storefronts in this poshest of posh districts…..

South Grandville the poshest of posh districts? I think you should have started with ‘I don’t get out at all”.

Li Kai Shing
Li Kai Shing
9 years ago

Ravishing Rick Says:

May 15th, 2011 at 7:03 pm

Cut the music!

You know why vancouver is the best? Because we can go to sleep and not worry about drought like those sweat hogs in Paris, New York, LA, or any other second rate city on this planet.

And if you believe that, i got a one story tipi on the banks of the fraser river in richmond that i will sell you for 1.3 mil.

Hey Li Kai, you know what else is wet besides Vancouver weather,…your old lady when she is thinking about yours truly.

===========

Hey rick with little dick

Then You be banging your mother, west van hillbilly

Now I cut you out of inheritance, maybe give your share to popez….patriotz and richhongcouverhomeowner…though we suspect all 3 = same

cue funeral music

bwhahahahahaha

patriotz
9 years ago

@Anonymous

One modus-operandi is to bid up the house prices in one area and then release their inventory for sale before moving in to the next area.

What, you mean the "rich asians" have conspired to manipulate the housing market by buying and selling en masse ahead of everyone else? But I thought everyone else couldn't afford to buy, just the "rich asians". So who could they sell to for a profit?

Anonymous
Anonymous
9 years ago

@vreaa: I'm with BPOM: "One sector of our community? That’s the problem, they’re not part of our community. They’re either “immigrant investors” or outright foreigners."

Last couple of days, Mingpao reported a woman fined $2,500 at YVR airport for undeclared contraband including 12 live crabs, duck's tongues, prawns and lard. A guy fined for not declaring his Patek Philippe watch estimated at C$30K+. Not that these guys were uneducated nor illiterate. There are reasons why communism works well in some countries. When liberated, personal freedom means "me, me, me" and does not include the community that adopts them.

One modus-operandi is to bid up the house prices in one area and then release their inventory for sale before moving in to the next area. Then start all over again.

WFT?
WFT?
9 years ago

@Patiently Waiting: I expected to see a sea of Asian faces, but the place is still whiter than mayonaise”

The rich asians don’t go outside. To find them, you should go to Oakridge Mall. That place is 80-90% chinese.

I go there often and let my todler play in the play area. Try talking to some of the other parents and you will find that none of them speak english. You feel like you are in a foreign country.

Patiently Waiting
Patiently Waiting
9 years ago

@Anonymous: “Look outside and check again.”

I don’t get out to the Westside of Vancouver very often. But the other day I happened to be there, and walked up and down the length of South Granville. I expected to see a sea of Asian faces, but the place is still whiter than mayonaise. I also noted a few empty storefronts in this poshest of posh districts.

jesse
9 years ago

@AG Sage: I wish I could mod you up more than +1. So true.

AG Sage
9 years ago

@jesse: These I didn't buy whiners boggle my mind.

Come on, you saved $1500 a month in rent over buying, another $1000 easily in upkeep, toss in a few hundred more on taxes and insurance and furniture. After 5 years of saving that instead of buying you are now sitting on $175,000 in cash, easily.

Oh, you didn't save 175k instead? Then you couldn't afford the house.

jesse
9 years ago

@Genie: "You forgot to curse the bears that told you to sit things out for the past 5 years"

Be sure to thank the rag-tag bunch of anonymous posters on Seattlebubbleblog, CalculatedRisk, HBB, piggington, and the other US-based "bear" blogs that successfully called the RE bubble and saved its devoted readers hundreds of thousands of dollars and divorce proceedings.

But yes, by all means, curse the "bears", if it helps.

Best place on meth
Best place on meth
9 years ago

@Anonymouse:

"Do you actually have any evidence regarding the number of immigrant investors who are criminals…"

"Don’t be a fool. I’m not asking you for precise numbers."

Your contradictory statements are a testament to your hypocrisy and stupidity, troll.

Anonymous
Anonymous
9 years ago

@Runawayscreaming:

There will be no angry white and brown mob here, simply because there will be no brown or white people left to form one. The Province of Western China will slowly expel all non-chinese residents, unless they're willing to do slave labour. Sounds like a Sci-Fi novel? Look outside and check again.

We are being colonized with a quiet approval of all levels of our government. Perhaps there's something in it for them?

I wonder…

Genie
Genie
9 years ago

I’ve been following the advice found on this blog for the last 5 years or so. Sadly, I am further from owning any RE in Vancouver now that I ever was.

And that’s an undeniable fact. No anecdotes here. No sir.

All the stupid, uneducated and irrational buyers are so ahead of me now, it’s not even funny.

I feel ashamed to be educated, prudent and reasonable.

That’s what this New World Order did to me.

I feel violated and hopeless.

FUCK YOU banks and governments. FUCK YOU!

You forgot to curse the bears that told you to sit things out for the past 5 years… they deserve a big F off as well.

Anonymouse
Anonymouse
9 years ago

@Best place on meth:

"Do I have evidence of exactly how many of them are criminals? Are you seriously asking me for precise numbers?

We have plenty of evidence thanks the the G & M expose that there is an entire industry in China based on falsifying documents for clients to fraudulently get them access to Canada through the immigrant investor program but you’re asking me exactly how many?"

Don't be a fool. I'm not asking you for precise numbers. But the fact that fraudulent visa services exist doesn't necessarily mean that all applicants are fraudulent. But you seem quite willing to tar them all with the same brush, when you're completely ignorant as to how big or small a problem it is.

Best place on meth
Best place on meth
9 years ago

@Anonymouse:

Do I have evidence of exactly how many of them are criminals? Are you seriously asking me for precise numbers?

We have plenty of evidence thanks the the G & M expose that there is an entire industry in China based on falsifying documents for clients to fraudulently get them access to Canada through the immigrant investor program but you're asking me exactly how many?

If their wealth is acquired legitimately then why are they using the services of scam artists?

Let me put it this way, your questions are incredibly stupid and irritating most of the time, although I don't have an exact number of how many.

Anonymouse
Anonymouse
9 years ago

@Best place on meth:

"See reference to shutting down the immigrant investor program. Criminals should not welcome here." and "China, an extremely corrupt country from which we are accepting people of dubiously acquired wealth (perhaps outright criminals). I"

Do you actually have any evidence regarding the number of immigrant investors who are criminals, or are your comments based on prejudice alone? For an economy that's growing so quickly do you really think it's so difficult for individuals to strike it rich legitimately?

Runawayscreaming
Runawayscreaming
9 years ago

To those of you concerned there will be race riots in Vancouver because of a bubble pop I must ask whether you think of everything in terms of comedy sketches or do you honestly believe that at some other time in human history there were race riots because of a real estate bubble? Somehow I cannot visualize a mob of angry white and brown Vancouver mortgagors with pitchforks and torches burning random Chinese-looking Vancouverites at the stake in the town square because they are mad about real estate. On the other hand I can visualize foreign speculators and Chinese "Investor" Immigrant Program criminals being forced out to sea at gunpoint and I would be happy to throw gasoline on that fire. However, I know that's not going to happen even in my most pleasant daydreams. The real estate con artist… Read more »

whydoItry
whydoItry
9 years ago

Asians only buy in rising markets. They are very skittish investors and believe entirely on luck. There success in investing is simply to follow what others are doing. Kinda like what everyone else has been doing too. So, you don't own a house. Go cry me a river. Being mortgage free is your reward. How about living in a home with a half million dollar mortgage and seeing the interest rate double just before its time for you to re-finance. Its been great pulling the equity out of the home for a new car, vacation and the kid's education. Just hope you don't get relocated by the company you work for. There goes that middle management promotion that you have to turn down because you have to be in Toronto or Calgary. Yeah, so renters – go cry me a… Read more »

Johnny-O
Johnny-O
9 years ago

@sore loser: Do not despair!

I have said it before, the market can stay irrational and stupid much longer

Than an individual can stay solvent. We are already reading reports of

Individuals being pushed into more debt to keep their million dollar homes.

Helocs have skyrocketed and people are burdening themselves even more in this

Easy credit environment meant to rescue the banks and the economy.

When or if the banking crisis fixes itself there will not be any sympathy for all

These over extended property owners and you will probably be able to pickup

The prices at the tax payers expense.

Best place on meth
Best place on meth
9 years ago

@sore loser:

See reference to shutting down the immigrant investor program.

Criminals should not welcome here.