gobigorgohome wrote:What is the price to income ratio on a million dollar recreation property in Sun Peaks? I'm guessing the average wage is $15 an hour up there? Assuming the ski bums up there are making 20K a year, that's a 50X price to income ratio on your property! See, I can twist stats to make stupid arguments too!
Taipan wrote:If you understand property dynamics you will know that booms expand from the centre out. eg Vancouver and Toronto and Calgary etc. Then when the bust comes, it contracts back in to the centre so the last place to be crunched is the centre of the circle. Thats whats happening now. You see the problems all around BC. And places in the outside of the circle are already back or approaching back to sensible levels.
You just spent the last dozen posts talking about how we are on the verge of a global financial disaster. According to you, we haven't seen anything yet. You even babbled about "hyper inflation" (lolz, sensible people know the threat is deflation). It would only be logical to assume that places like Sun Peaks will be the first on the chopping block once the Lower Mainland runs out of steam, and newly underwater home owners in Vancouver divest themselves of their recreational properties in the interior. The time to buy would have been AFTER the Lower Mainland runs out of steam, not BEFORE.
Face facts Taipan, there is no price support in Sun Peaks for properties at these prices. The local ski bums and service workers will be scooping up the properties around you for 50%+ discounts once your Asian vendors sell off their properties in Sun Peaks, in a panic, to recoup losses on their underwater properties in Vancouver proper. Once your GFC2 hits and billions of dollars of equity is wiped out of the Lower Mainland in an unprecedented fashion, Sun Peaks will become a ghost town, and desperate Asian vendors will be foreclosing left right and centre, regardless of your 2006 price level theory, and prices will re-align to true local income levels and inventory will sit on market for years, especially for million dollar properties.
Hey, it's not my money, and I don't care that you bought in Sun Peaks at probably 50X price to local income levels. I also find it strange you bought a million dollar recreation property shortly before when you claim macro global events are about to freeze global credit markets and shatter the property myth. But hey, good luck with that!