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Originally Posted by no_clue
Anyone know how to short the Vancouver market? or specifically condos? lol.
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Well now that's an interesting one...
I beleive Canadian real estate is due for a correction, but many others do not agree... mind you most of these people don't have a clue about economics.
If you want reasons why it should crash :
Book and Weblog – Authored by Garth Turner — Greater Fool – Authored by Garth Turner – The Troubled Future of Real Estate Mr. Turner presents the logical case for a real estate correction.
Here is another option, with interst rates so low, keep the condo (Since you have to live somewhere and you aren't giving away piles of money in a mortgage) why not consider a HELOC at 80% of the equity and then invest that in whatever you please?
Another thing you can do is sell the condo, invest the money with a money management firm (like wellington west (now National Bank Financial), they can arrange it so the XX dollars you have invested with them can be used to secure a loan between 80-100% of the portfolio value... Now you have say 400k invested with a money manager that should be able to get you a bare minimum of 6.5% annually, and another say 300k for you to play with and invest as you see fit... even it it's only pref. shares at another 6.5% (Easily attainable with Canadian Bank and other Corp. preffereds) No you are making roughly 45000k per year off of your 400k cash... over 10% yield with basically no risk if you stick to pref. shares. Obviously if you're feeling risky you can adjust accordingly, now you are also completely liquid, something real estate obviously doesn't offer.
My personal advice is that I would list the condo for the price "I want to get" if it sells, great.. if not you need a place to live anyway lol. Provided you plan to live here long term.
If I owned any property right now, it would be for sale, and I am meeting more and more people lately who have sold their house in the last year or so that plan to "buy back in on the correction"... so if that thought has dawned on many common folk, it's only a matter of time before it spreads... thats whay real estate cycle is so volatile, when sentiment shifts and people believe they can buy back in lower.. nobody wants to buy, and everyone wants to sell. (Obvisouly the opposite would apply to an appreciating market)
Remember in 2008, prices tanked everywhere in a matter of weeks, thats how fast it happens... people sure forget things in a hurry.
On a side note, I've really been considering a move to WA... cheap housing
I would love to stop paying rent.