Eye's property continues to appreciate while Geyser's slumbers and he's perturbed that the East Van proletariats are banking it. Geyser doesn't like that fact that all the grubby boats in East Van continue to rise with the ships on the West side while his box in the sky is commoditized. He needs someone to attack to make himself feel better. Classic bully.
Au contraire, I'm happy for people who have done well in real estate, I'm one of them. As for East side boats rising the same as Westside boats, on a percentage basis that might be true, but the actual price gap between Eastside and Westside has widened significantly in the last few years - as it should.
BTW, the proletariat like Eyes are not "banking it". They are looking at their paper profits and gloating. That's different.
My own primary residence is not well suited to the "box in the sky" description, although it certainly is "in the sky".
As investments go, there are variously ways of looking at it. If you live in it, are you like Eyes, focussing entirely on the investment aspect, or do you also factor in quality of life, or as in Eye's case, lack thereof?
Eye's knows that, as über-bull Tsur Sommerfield suggests, the investment potential is in the land, buildings merely depreciate, hence in an up market we expect SFHs to outperform condos and in a down market we expect the reverse to happen.
If you own property other than your primary residence and they continue to yield a double digit return on the your initial small, decades old investment which has long since been paid off, is it a bad investment to continue drawing that income? Some will say counting returns on the initial buying price is the wrong metric and that every investment should stand alone based on the return on current value. My emotions go with the former analysis and my accountant stresses the latter.
For what it's worth, I dumped almost half of my Vancouver condo interests several years ago. It appears to have been a good move which freed up a goodly chunk of cash. So far the cash extracted has out-performed the local SFH market quite handily, but only distant hindsight will tell the full story. At the moment I'm looking golden.
We all have our own reasons (taxes and other things), for retaining or selling property. At this late stage in my life I have no further interest in buying or selling. My reason for posting here is because I really do think that the current price:rent:wage situation creates a divided society, and that eventually reduces the quality of life for everybody.
I particularly worry about over leveraged recent buyers because I suspect they may soon face a financial Apocalypse. The fact that the "grubby boats" in bad areas can now sell to over leveraged "proletariat" for around $1 million should be sounding major alarm bells in the minds of anybody with a heart. For those homeowners wise enough to be currently cashing out, well done, you just won the lottery. It's unfortunate that in many cases the money is coming from over leveraged "greater fools".
In fond memory of Taipan, a model of modesty, decency, dignity and tolerance. Long may we all prosper from the tremendous legacy of worldly wisdom and specialized real estate knowledge which he left in the "Arguments" thread.