Happy buyers don’t have regrets

Are we having fun yet?

If you’re ‘in the game’ you know that the real estate market in Vancouver has been a frothy pond of fun for years.  If you don’t count transaction and renovation costs it’s easy to get rich flipping condos.

Or if you want to get more meta just resell presales contracts.

That’s right, we have people here who will buy the right to buy a building that doesn’t exist yet!

The funny thing about easy money is that it seems so unreal. This city is filled with people who could easily cash out even at current post peak prices and have a big chunk of real money, but will the majority do that?

Nope. The majority will stay put, renovate, buy back into the same market or turn their home equity into more debt via a HELOC.

In fact the majority couldn’t all cash out even if they wanted, we simply don’t have the buyers to enable that. Even when we had bidding wars we didn’t have enough buyers for a majority to cash out and now that sales have plummeted we really don’t have enough buyers.

A few lucky sellers will cash out and make money off this bubble. Likely because life changes caused them to move on. The majority will keep on paying their mortgages or get foreclosed on. Recent buyers will be paying more to keep their homes and may start to feel a bit trapped.

You saw this here just a couple years ago when buyers were complaining that developers were selling condos in their building for less than they paid and developers were suing presales buyers for money to cover the difference between their deposit and the lower resales value.

But you know what? They’ll be fine, they payed the price they felt their home was worth to them. A market decline doesn’t hurt someone that is happy with the price they payed and can keep paying their bills.

And if rates go up or job losses occur? Well someone without a financial buffer and emergency savings to deal with such a scenario really wasn’t ready to buy a house in the first place.

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patriotz
Member

“They’ll be fine, they payed the price they felt their home was worth to them.”

Ah but you see, the price they felt their house was worth was based on an expectation that prices would keep going up.

That is, they were all speculators.

yvr2zrh
Member

Just saw the posting from yesterday about the Melville and the smoking rules. I don’t think this one is done yet. Someone is going to make a challenge of this legally. Strata Councils are very powerful and can restrict your life within strata living. However, restricting someone from doing something perfectly legal within their own suite sounds like going too far.

I’m not a smoker and absolutely can not stand it. However, building design needs to take into account the need to keep the air pressure such that it pushes air into units and does not take air out.

Anyhow – – back to stats. At least we end with a Friday this month so we should not see the sales exceed 2008 as Friday’s are usually disasters.

registered
Member
registered

1 patriotz Says: “That is, they were all speculators.”

What markets is ever composed of buyers expecting to lose money? Labeling those in this one speculators does’t differentiate them from any other, bubble or not.

Common Air Combustion Rights?
Guest
Common Air Combustion Rights?
@YVR2ZRH: “…building design needs to take into account the need to keep the air pressure such that it pushes air into units and does not take air out.” If only!!!!! Good quality brand new buildings have terrible inter-suite pressure isolation. The slightest pressure difference adjacent to a smoking suite will cause particulate ingress to non-smoking suites despite any attempt to keep building ventilation pressure positive in hallways. There are unavoidable common plumbing walls, electrical distibution conduits, and so on. When the question of smoker’s rights is framed as a right to combustion, it is much clearer that it not a right. It is even a fire hazard and arguably a total building hazard from the point of view of disabled fire detection sensors. Show me a smoker’s suite and I’ll show you a fire code violation because the smoke detector… Read more »
Common Air Combustion Rights?
Guest
Common Air Combustion Rights?

@fixie guy: “What markets is ever composed of buyers expecting to lose money?”

Fair premise, but it is an open question as to how the money is “not lost”. If house prices are stable you could save money by owning instead of renting. In fact, if the price follows exactly ordinary inflation, rent/buy math can be worked out perfectly, can’t it?

Making money isn’t always about exploiting bubble inflation. Interest accounts, notes, bonds, etc – fixed income instruments can also make money without speculative madness.

patriotz
Member

@fixie guy:
“What markets is ever composed of buyers expecting to lose money?”

“Losing money” is something entirely different from “selling something at a lower price than you paid for it”.

Car rental companies always do the latter, but still they make money.

joe_blown_away_by_high_housing_costs
Guest
joe_blown_away_by_high_housing_costs

Globe and Mail columnist writes an article about her own property she is trying to sell

http://vreaa.wordpress.com/2012/09/27/globe-and-mail-columnist-uses-home-of-the-week-to-advertise-sale-of-her-own-house/

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

no 20k inventory. yesterday was a 100 sales day. what new magic number will bears cling to? keep the hope alive bears.

have you seen the new movie on youtube? it’s called ‘the innocence of bears’. it talks about half a decade of bad predictions. demonizing people who had good predictions. bears taking down their site and crawling back into their cave, only to reappear when the stats look bad and then disappearing again when they improve. and the long lost bears who disappeared and never again returned.

tell us your economic theories bears. they have served you so well thus far.

dire straits
Guest
dire straits

if you fully own your property how much maximum the bank would give you in HELOC? Is it 65%?

Anonymous
Guest
Anonymous

it’s worth repeating!

“have you seen the new movie on youtube? it’s called ‘the innocence of bears’. it talks about half a decade of bad predictions. demonizing people who had good predictions. bears taking down their site and crawling back into their cave, only to reappear when the stats look bad and then disappearing again when they improve. and the long lost bears who disappeared and never again”

Anonymous
Guest
Anonymous

i am sure this thread started by just another jealous person! nothing new here kids.

registered
Member
registered

6 patriotz Says: “Losing money” is something entirely different from “selling something at a lower price than you paid for it”.

Entirely different? The second is trivially a subset of the first if buyers really acted primarily as speculators on capital gains.

jack b nimble
Guest
jack b nimble

@Anonymous:

#11. Why? Why? Why? do you come read then?

zonk
Guest
zonk

@Bull! Bull! Bull!: I haven’t seen the Canadian remake yet, but I did see the original US movie. It was funny!

Patiently Waiting
Member
Patiently Waiting
Public school enrollment is down, probably by thousands across the Lower Mainland, but definately by 500 in Vancouver. I’m not sure why the sudden concern as enrollments have been trending down for years. Looking at Bacchus’ comments, its interesting that the first thing she wonders about is if children are leaving Canada. Are some HAM finding the new Federal Government scrutiny worrisome, and starting to go elsewhere? http://www.news1130.com/news/local/article/406123–public-school-enrolment-in-lower-mainland-down Patti Bacchus with the Vancouver School Board says she won’t know for sure until the end of the month, but it looks like her district will have about 500 fewer students this year. “It’s often difficult for us to know where they have gone,” says Bacchus. “Have they left the country? Have they gone to home school? Have they just dropped out? Have they gone to an independent school, or in some… Read more »
binny
Guest
binny

Patti Bacchus: “Have they left the country? Have they gone to home school? Have they just dropped out? ”

How about moving to another province? you know the one’s that still have friking jobs above minimum wage.

Patiently Waiting
Member
Patiently Waiting

BC’s population growth and age structure is now just like Eastern Canada.

http://www.statcan.gc.ca/daily-quotidien/120927/dq120927b-eng.htm

Patiently Waiting
Member
Patiently Waiting
vangrl
Member
vangrl

“If you rent a place in Metro Vancouver and are hoping to buy a home one day, the recent forecast from well-known investment advisor Garth Turner may be music to your ears. He predicts house prices could drop by as much as 40%.”

http://vancouver.24hrs.ca/Columnists/DanielFontaine/2012/09/26/20236746.html

atta boy, get it out there!

Anonymous
Guest
Anonymous

@Patiently Waiting: I thought Bacchus was the god of wine, not whine..

Can't wait
Guest
Can't wait

@Patiently Waiting: “Are some HAM finding the new Federal Government scrutiny worrisome, and starting to go elsewhere?”

keep an eye on the childhood poverty rates for the answer to that one.

taylor192
Member

The smoking debate is always going to be a hard one to justify. For the record, I do not smoke, yet I cannot see preventing others from smoking in their units.

If you’re going to ban smoking based on particulate counts entering neighbouring suites, you open the debate to BBQs, certain smelly foods, … etc that contribute to quality of life and health. That’s not a debate I wish to have with my neighbours.

binny
Guest
binny

Patiently Waiting “Immigrants and migrants all heading to the Prairies”

BINGO

Bachuss is just trying to be clueless.

Anonymous
Guest
Anonymous

@Patiently Waiting: But I thought everyone wanted to live here!

Brett
Guest
Brett
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