Quote:
Originally Posted by Ludepower
It is money in the bank though. Even the bank says so by letting you take out a big HELOC from your gains.
He can sell his DT condo in a heartbeat and rent and invest the 400k into the stock market. He can leverage his place and upgrade into a bigger home or stay put and HELOC a second rental property. Or move out of BC and buy a home cash money and be mortgage free.
All these options are available to him, our parents and many others who bought early.
What you guys call papers gains are problems I would love to have.
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I’m not disagreeing with most of what you said, but the upgrade part is the worst of it.
Ok so he sells his 400k purchase for 700k and has 300k in the bank. Now he has a 300k down payment to upgrade to a 1m place that would have been 600k when he bought his 400k place effectively costing him 150k more than if he were to have purchased that originally. My numbers are an approximation based on a 50k original down payment but you get the idea. It’s a negative proposition for those upgrading. The big winners are those who are downgrading.
As I said, in most instances those who were first time home buyers that got into the entry level market, the increase in value is a negative other than using it as leverage to invest elsewhere.
As usual, the younger generation that wants to live in a city with job prospects to actually afford this, gets fucked by the increases while the older generation profits. There has to be a breaking point as the generation behind us has no chance.