cheaprealty net

Forget about sitting pretty, the smart people are cashing out and sittingout.

Here's a story about some real estate millionaires who cashed out their paper profits in Surrey, of all places. Did they buy a place in a more expensive neighbourhood and "move up", taking on more real estate debt, or remortgage to buy investment properties? No, insead, they decided to rent a house in West Vancouver, one of the most desireable neighbourhoods in Canada for the affluent and well to do.

The rent? $2500 per month.

As the author sets the scenario up in an oh so sunny fashion:

...And indeed, there seems almost no way the bears can
be wrong. In a city where fewer and fewer can afford
to buy, and where investors complain that rents don’t
come close to covering expenses, how can a rise of the
magnitude Vancouver has seen over the past six years
not be followed by an imminent fall? Especially when
other markets, not just in the U.S. but around the world
and even next door in Alberta, are also fading?

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