I notice you left me out of that list of RE bears. I guess maybe you already recall that I have stated I bought long enough ago that I have did get in on the Vancouver boom.Bullseye wrote: ↑Aug 27th, 2009 8:05 amIt's my understanding from past posts that pitz, i6s1, and VivienM are all renters, is that correct guys? Did any of you cash in on the real estate boom in recent years, or did you rent throughout?
I just want to clarify this, as there has been a lot of talk about bias on the part of bankers, government, and real estate boards, who all allegedly fiddle data to skew it in the favour of a rebounding market, which benefits them.
If there is bias on the other side, due to say, bitterness on missing the boat, I think we should be aware of it.
I haven't capitalized on it though for a few reasons. For starters, I didn't grossly overpay for my place and I happen to like it. No-one will argue that owning has it's benefits. Also, I'm married and it's pretty clear I wouldn't be able to convince my wife to rent a place instead. There's a certain stigma with renting vs buying and it being "throwing money away" based on "conventional wisdom" that is simply fallacious in the current environment. The fact that everyone blindly believes this "conventional wisdom" is one of the root problems, but I digress.
Anyhow, with 55+% paper gain in property value while I've only managed to grow my salary by 20%, I think you'd have a hard time saying I'm bitter about missing the boat.
But that brings up an interesting point. I was early in my career and able to grow my salary agressively, if I was 6 years younger, but still managed to get my current wage, my chances of ever owning property in Vancouver would look pretty dismal. (Well, maybe not quite, given that right now I could still leverage low interest rates, low downpayment requirements, and long ammortizations to get my foot in the door but as pitz says, this is basically buying a lottery ticket.) That is what really concerns me and the clearest sign that a correction is required.
You may argue those that missed the boat are doomed to rent for the rest of their lives, but my counter argument is that if prices don't drop, rents must also rise to an unafordable level to compensate the landlords for the opportunity cost of their investment. I suppose maybe the younger "middle class" in Vancouver is doomed to choose between a life of poverty or moving away.