There’s enough bad news out there it’s almost easy to forget there ever was a real estate boom. Friday’s Vancouver Sun ran a negative-negative combo with the headlines “Investment in home ownership is not for everyone” and “Housing market could turn ugly: economist” duking it out for top party-pooper status.
In the same edition, on the editorial page, the paper praised the end of the 40-year mortgage. The Sun even took some credit for its demise, saying they “sounded the alarm several times over the last few years.” While it’s true that Harvey Enchin wrote a blistering column two years ago, the Sun’s editorial on the topic this past May was pretty soft… and pretty late. (The Bank of Canada and Minister of Finance had already signaled their concerns about long amortizations.)
Also, it’s quite hilarious that the Sun would congratulate itself as an advocate for the financial interests of new home buyers. If this were true, Westcoast Homes would be a chronicle of affluent renters and all the non-volatile investments they make that pay better than real estate.
“I love parking my cash in high-interest savings accounts,” says Ravi, 40, a financial planner. “Why own condos when GICs pay better than a tenant!” The article proceeds to showcase his well-decorated apartment and his outstanding collection of mid-century antiques. “I bought that chair in Milan. I don’t have a mortgage so I travel quite often.”
Wouldn’t it be amazing if we read stuff like this in the local papers? Maybe when the bust hits, we will.