Quote:
Originally Posted by trix4kids
IMO although I think housing prices aren't going to go up drastically, there won't be a pop like America in 2008. If you look at history, when has real estate ever depreciated for a long period of time? My uncle once told me a really simple concept, that the population is always going to grow which means a demand for real estate is always going to be increasing in the long term. Even if there's a dip in Vancouver RE, it'll always bounce back up as demand is always high pertaining to how convenient it is to go everywhere compared to living in Surrey or Langley. And even if supply somehow manages to substantially outweigh demand, the market will probably be cornered to create an illusion of demand and the value of Vancouver property (present day). Furthermore, the only way for our real estate to "pop" is if there is some crazy economic meltdown (think subprime mortgages). My 2c
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And the idea that "RE will always go up" is a great one, but when you have significant holding costs (which you do with RE), then it's extremely painful. Especially if you've bought a condo that you had planned to rent and then the owners at the beginning decide to have a strata meeting and then ban rentals from the building. Now you're stuck with a condo you have to pay the mortgage and strata fees on, and you can't rent it out to defer the costs. Sure, you'll get a payoff in a decade or two...but what about now when you have to lose thousands a month?