For the last 4 years I have been warning anybody that would listen about the brutal reality and cruelty of this credit bubble which has caused your housing bubble in Vancouver.
That going into such massive debt would end up killing people. People would end up committing suicide.
Meanwhile we have an industry that is very greedy, and will exploit anything to keep those prices rising and the stock ticking over.
Today - I cruised past Garth Turners blog - and BTW I think he is optimistic, and saw this.She was hitched then divorced, in Edmonton. “Disastrous,” Aggy describes it. She signed over the marriage house then limped back to BC, broke and broken. Lost her kids. Lived for three years in a co-op, found a job and managed to crawl out from under her Visa bill. “Now I’m just another idiot,” Agatha says, “to add to your collection.”
One afternoon in 2007 she sat looking out the window of a Starbucks in Vancouver. “In walks a dashing dynamic realtor, owner of a major local agency… starts chatting… two days later, in a haze, I find myself ‘owning’ a condo… zero down, 40 yr amortization, $247,900 plus the 10K CMHC fee. Nice place, near where I was living, near my kids and grandkids, familiar trails for the dog, etc etc. Five-year term is up now. I owe 245. Could sell it for 240 if lucky and act fast.”
She wrote me tonight.
“I feel I need out NOW, at age 58, and switch to renting, but no idea how to get out of my situation. Should I ask the bank if they would please repossess and accept the shortfall, which I could at least cough up? My job is maybe good for a year, but that’s about as long as I think I can survive the stress of this career. I want to find a way out, without choosing the ultimate out, which believe me, has been on my mind this past year — it scared the poop out of me, to realize that the mind can even go that way. Now at least I understand people who succumb. I will survive. If only I could think clearly about my situation!!
Just another idiot
And that is why I have bothered to try and warn people about the dangers of excessive debt and this property bubble. Too many people saw this as a quick way to security.
It wasn’t and isn’t. It was a quick way to massive debts, misery and pain. I know what its like to suffer under massive debts and it isn’t fun. I worked my way out. Most people never will!
I see ratty going on about opportunity loss of not having been in the market! What about all those people who should never have been in the market in the first place like this poor lady.
Where's her increase over the last 5 years ratty? Doesnt sound like its happen to her!
She should never ever been put into a mortgage like that. These are the liar loans that supposedly didn’t exist in Canada. And what idiot gives a 53 year old woman a 40 year loan.
From now on, you will start to see more and more of these. More suicides, more broken families, more destroyed lives.
Coming to a site like this all they ever got was buy buy buy. The mania was palatable. At least a few of us have and continue to warn people to beware.
To that group who are greedy speculators - well it’s called risk and reward. If you haven’t taken the reward by now, then your 100% exposed to the downside risk. And tough!
Geezer: "What if somebody listened to Taipan and doesnt buy".
Well, they will thank their lucky stars, that they arent one of the thousands of miserable souls who cant sell their properties in 2013!