Quote:
Originally Posted by Jmac
If my theoretical duplex went up $500k in a year, I'd sell, pocket the $500k less costs, and rent until the market corrects itself.
$500k is many, many years of rent
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The Vancouver market won't correct itself as long as the Chinese economy is going strong. Alot of people in Vancouver rode the rollercoaster, sold their houses in 2007 and made some mad $$$. The plan was to wait it out when prices dip below, and buy another property. Except it never happened, property prices shot up and kept going strong. So those people were left with good sums of $$$ in their bank accounts, but it's not enough to buy in to the market again without significantly downsizing.
Quote:
Originally Posted by StylinRed
Id like to know what sort of work all these new buyers are in though, to be able to afford a mortgage for a $1.5m+ home, there doesn't seem to be enough jobs offering $225k+ a year income, or even 112.5k+ (for a couple)... or are a lot of these buyers just qualifying for mortgages thanks to shady brokers, and the rest are renting out rooms
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I can't speak for all, but I hear of alot of people running mortgages on their 2.5m+ home. They do it as a way to launder money, alot of it from restaurant businesses in Richmond. If they were to stash up the $$$ in the bank, problems would arise, so by mortgaging, they manipulate it in their best interest.