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AWDTurboLuvr · 10-06-2009, 04:27 PM

I'm a bit late to get here but I'll add in my two cents anyways.

As a current and soon to be ex-property investor, I would agree that residential rentals are way too much hassle and now is one of the worst times to try to get into it (initial investment amount is too high). Me and the wife have sold off some of our condos in 2007/08 and are probably going to sell off our other remaining one and just wait for the housing correction.

I felt that the housing boom in the GVRD is mostly psychological...as in that everyone got caught up in buying a property because everyone else was doing it. I mean, I'm sure almost everyone had a friend or two that was or did buy a property...and then sold it for a profit. People didn't want to get left behind or they didn't want to seem stupid to others for not getting involved. Stupid shows like "Flip Me" on HGTV or TLC made it look easy to just sell homes for profit and people bought into the hype.

I had a chance to chat with my friend's real estate agent a few months ago and I asked her what she thought of the housing bubble. She proceeded to tell me that there is no bubble and that house prices will go up because interest rates are low and that there is no more real land to build on in Vancouver. I've never heard a bigger pile of BS than this. I asked her well, what happens when interest rates go up (because they will)? How will people afford still? She tells me, "That's what 35 year mortgages are for." Dear lord...

All I ask is for you to really sit down and write up a proper budget...and budget for some severe rainy days...because they do happen and those are the times that end up screwing someone over financially. Research and educate. Do not let your emotions get involved in your decision.

I personally find it ridiculous how people will not invest in the stock market with limited knowledge, yet do the exact opposite with real estate, sinking huge 6-figure sums into a 25+ year mortgage...hoping that values will go up.

10-06-2009, 04:27 PM	#78
AWDTurboLuvr I Will not Admit my Addiction to RS Join Date: Mar 2008 Location: Montreal Posts: 590 Thanked 324 Times in 144 Posts Failed 2 Times in 2 Posts Member's Picture Albums	I'm a bit late to get here but I'll add in my two cents anyways. As a current and soon to be ex-property investor, I would agree that residential rentals are way too much hassle and now is one of the worst times to try to get into it (initial investment amount is too high). Me and the wife have sold off some of our condos in 2007/08 and are probably going to sell off our other remaining one and just wait for the housing correction. I felt that the housing boom in the GVRD is mostly psychological...as in that everyone got caught up in buying a property because everyone else was doing it. I mean, I'm sure almost everyone had a friend or two that was or did buy a property...and then sold it for a profit. People didn't want to get left behind or they didn't want to seem stupid to others for not getting involved. Stupid shows like "Flip Me" on HGTV or TLC made it look easy to just sell homes for profit and people bought into the hype. I had a chance to chat with my friend's real estate agent a few months ago and I asked her what she thought of the housing bubble. She proceeded to tell me that there is no bubble and that house prices will go up because interest rates are low and that there is no more real land to build on in Vancouver. I've never heard a bigger pile of BS than this. I asked her well, what happens when interest rates go up (because they will)? How will people afford still? She tells me, "That's what 35 year mortgages are for." Dear lord... All I ask is for you to really sit down and write up a proper budget...and budget for some severe rainy days...because they do happen and those are the times that end up screwing someone over financially. Research and educate. Do not let your emotions get involved in your decision. I personally find it ridiculous how people will not invest in the stock market with limited knowledge, yet do the exact opposite with real estate, sinking huge 6-figure sums into a 25+ year mortgage...hoping that values will go up.