This on boggles the mind.
If you have an income that is dropping and you are in a negative equity position on a condo in one of the most overpriced cities in North America what should you do?
At least one financial planner says hold on tight!
She does have a way out. Lisa could sell the condo, pay off her loans, and walk away. She would be free to rent equivalent space and save perhaps $500 a month. She would be mobile, could easily take jobs in other cities and would be free of debt. However, she would have given up a good asset in valuable real estate. Moreover, unless she can get $350,000 or more for the condo, she would be in a deficit position after selling and moving costs.
It’s Friday and that’s important here!
Yes, even when we miss a whole week of updates it’s still friday-free-for-all time.
This is our regular end of the week news round up and open topic discussion thread for the weekend.
-links coming soon, hopefully!
In the meanwhile, what are you seeing out there? Post your news links, thoughts and comments here and have an excellent weekend!
Barbara Yaffe has a column in the Vancouver Sun where she points out some of the problems with ‘paper riches‘.
A recent study reveals Vancouverites have the highest net worth in Canada as a result of their pricey homes; so why do so many of us feel like we’re in the poor house?
It’s probably because, with median incomes below the national average, Vancouver residents are grappling with monster mortgages, as well as the highest consumer debt loads in the country.
And while it’s great building home equity, this does little to improve financial positioning until a place is sold and a profit realized.
Read the full article in the Vancouver Sun.
Even with all the recent warnings of a housing bubble that is no longer limited to just Vancouver and Toronto, you’ll still find lots of media coverage that dismisses bubble talk or explains it away as an ‘ownership premium’.
It’s not difficult to see why this is – there are thousands of people who’s incomes depend upon the housing market.
Whether its condo marketer Bob Rennie or a random realtor, they all have their day to day income tied to the health of the real estate
market and conveniently are given ‘expert’ status and quoted by the local media.
That makes an article opener like this all the more shocking to newspaper readers:
Is there a housing bubble in the Lower Mainland? Housing zeppelin is more like it. Bubbles, after all, are soft and cute and harmless. Zeppelins, conversely, hurtle into the ground, spewing flaming wreckage in all directions. And that’s precisely what we’re about to witness in Metro Vancouver.
That’s the intro to a rather dramatic editorial written by Gord Goble and published in a number of local papers.