My Brother-in-law is an idiot

[Alex_FORD]

My Brother-in-law is an idiot. when he thinks about the increases in value to his house, all he sees is $$$ signs.

So he has found a job in a slower economy in BC, just so he can sell his house in Calgary and make a 100 grand( after paying off debt).

My point is: His house is increasing in value by approximately $800(?) per day. And when things cool down, the values probably won't slide backwards very much. I personally dont think they will go backwards even the slightest amount.

What kind of idiot sells in this kind of market, if he ever wants to come back to Calgary, it'll cost him a small fortune.

[adamc]

life's better in bc

[01RedDX]

.

[Weapon_R]

How is he an idiot? Anyone who can live as well with a good job in another area and pocket 100k+ should do it asap. He'd be an idiot if he were selling his house to buy another one in Calgary, since you'd be breaking even pretty much. The only people who make money in a market like this are those who own more than 1 home or are moving out of Calgary.

[_wrx_]

right now is the best time to sell houses. our family is selling one of our houses and profet margin is at its high right now. the market is cooling down just a bit, but still inclining at a slow rate.

[shakalaka]

Word..my dad's plannin on doing this. Just moving to BC, since its an awesome place to live. We won't sell our property here or anything, cauz we already have property in main Vancouver area. Plus my parents got lucky, they just bought a property for investment purposes sorta like a professional building for around 800K, just before the prices went up and it's already at 1.3Mil or something like that.

But even the prices stop going up in Calgary, they are prolly going to be more stable than anything. Won't really go down, not that I think of anyways.

[benyl]

I don't think he is an idiot. He can go to BC and enjoy his money instead of having it locked up in a house. Besides, He doesn't have $100K until he sells it. If he waits too long and nobody wants to buy his house, he won't have that $100K.

Properties in BC should also increase and he will also be making money while he is there. He will likely be able to afford to return.

Funny, are you not the same guy that didn't understand how mortgages worked for a property you were buying in BC?


What some people don't realize is that history has a habit of repeating itself. Back in the 70s-80s, we saw interest rates in the double digits. Many people (including my parents) sold their houses for $1 or declared bankruptcy. Don't kid yourself into believing it can't happen again.

There is talk of stagflation in the US. There is nothing the central bank can do in a situation like that where the situation doesn't become worse before it gets better. Canada's economy is stronger, but heavily tied to the US. stagflation can happen here too.

[turbotrip]

I think he made a good decision, because as the new batch of houses hit the market in August, and the mortgage rates increase again I believe house prices are definitely going to drop a bit very soon. I think in the next 3 months the real estate market is going to level out (as soon as the mortgage rate jumps again).

[sputnik]

I dont think hes an idiot. The idiots are the people who think that Calgary has an invincible job and housing market.

Calgary is actually VERY shaky right now. Inflation is going through the roof, housing costs have doubled and we are probably going to experience an even worse staffing shortage as people are going to stop coming here because they cant afford to live anywhere.

I have considered selling and moving to Winnipeg myself. Then I will at least be mortgage free and could probably live off of a $15/hr job. Or my wife and I could both work for just over minimum wage. At the end of the day at least I have a house to come home to. In your brothers situation if he invests the $100k... if the job market tanks he can probably live for 3-4 years on savings while the market comes back to normal.

In Calgary if the job market tanks and I cant make enough to pay my mortgage I will have to sell my house. I can only hope that my house will still be worth more than what I owe and that it would actually sell.

[heavyD]

BC is beautiful but there's a reason is called Bring Cash and high paying jobs are not easy to find. My inlaws moved there from Alberta and had to sell one of their vehicles as they couldn't afford to operate them in BC. Everything is more expensive there and some things considerably.

[Crymson]

Your brother is SMART!

Everytime i hear people talk about house prices in Calgary, all i can think of is the episode of "The Simpsons" where homer bought pumpkin futures 3 weeks before Halloweed and he says something to the tune of "At this rate, by christmas we'll be millionaires"

Right now is the BEST possible time to sell and get the hell out of Calgary. Interest rates are climbing steadily back up again, but house prices have not yet started correcting to that (picture a graph with a sine curve and cosine curve on it, pick one line and call it "intereste rates" and the other "housing costs") and you'll see what I mean.

If i could move back to S'toon and still work, i'd do it in a heartbeat.

If you bought 200,000$ in stocks and it's now 300,000$ people would call you an idiot for not selling. Moving isn't that hard.

If you were mortgaged to the 9's and took just the profit on something like that, you could buy a place somewhere else for CASH (you realize, not paying mortage or rent, you could practically support yourself working part time at 7-11 and keep the same lifestyle).

I'm not financial advisor, but i feel that we'll see 10% interest again, and bankrupcies galore, in the next 5-10yrs.

[lint]

Originally posted by Crymson
... and bankrupcies galore, in the next 5-10yrs.

That's what I'm waiting for

[sputnik]

Originally posted by Crymson
Your brother is SMART!

Everytime i hear people talk about house prices in Calgary, all i can think of is the episode of "The Simpsons" where homer bought pumpkin futures 3 weeks before Halloweed and he says something to the tune of "At this rate, by christmas we'll be millionaires"

^ infinity

Like my dad always told me. Nobody ever lost money selling to early.

[Altezza]

Like many have already stated, he's not dumb. I know quite a few people who have made it big in real estate over the past 30+ years. They are all slowly SELLING their Alberta real estate holdings.

[max_boost]

haha yah even my parents are planning to sell two of their properties and just letting it sit in the bank in anticipation of the meltdown. LOL

For me, give me 5 more years before the markets crash so I can pay off my house and car first. hehe

[snade831]

real estate is the best investment you can have. your brother made a good decision.

[/////AMG]

It's a sellers market and a buyers nightmare.
He did the right thing, even if he was going to move to BC anyway, whats the harm in selling it?

[heavyD]

He's only pocketing $100K to go to BC which won't go far at all down there. He'll be back in Alberta in less than 5 years looking for work with less money than he when he started. Selling in Calgary & moving to Saskatchewan or Manitoba would make him smart but moving sideways doesn't.

[max_boost]

At least your brother in law is planning to move to BC. My buddy wanted to sell his New Brighton house and move back with his GF's parents. WTF was that kind of reasoning. LOL At least someone talked some sense into him and he changed his mind.

There will be a lot of fucked up people if things crash. I don't think I even want to think about it.

[heavyD]

Originally posted by max_boost
There will be a lot of fucked up people if things crash. I don't think I even want to think about it.

Not me. I'll be one of the vultures picking up cheap real estate and/or vehicles. There's far too many people in this city living beyond their means.