Quote:
Originally Posted by sonick
Damn, if anecdotal evidence counts for anything, March is going to be a big month for home sales. Just today I got word that two of my friends have put in offers, and one other person on my fb is asking for a mortgage broker; this is after heard nothing at all previously.
So surprising to see two of my friends, whom as far as I know are professional and completely logical people, give into the lust and buy a place. One with an offer that is probably at least $20k over assessed value (a lot considering asking is $350k at $556/sqft), and the other a pre-sale with an April 2016 completion.
With word of 2.87% 5-yr fixed rates, I would be lying if I said I do not have hints of adult-onset peer pressure...
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The assessed value is often below the market value, particularly for residential properties. 20K on 350K is less than a 10% difference which is about right.
It all depends on one's situation. If your friends are more or less tied to Vancouver for the long-term and have done the numbers, then buying can make sense as long as they're in real estate for the long haul. 350K may sound like a lot, but what does your friend do for a living and how much of a down payment does he have? Sure, people will poo-poo him for being for foolish, but not everything in life is a completely rational decision.
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