Wednesday, July 4, 2007

Why do I write this?

While we await for the official release of numbers, I'd just like to spend a moment to explain why I write this. Some people have accused me of having 'vested interest' and writing in a 'self serving' way. I have also been accused of being a loser, stuck in a job that I do not like and am envious of my flipper friends who have apparently made some money on paper based on massive borrowing and the yet to be realized real estate gains.
I would not say much about my financial position, except for the fact that we as a family make very comfortable living (last three years we made over $200k in annual earnings) and I'm not stuck in a job that I don't like. We live very frugally and save close to 70 per cent of our earnings.
If we want we can go out and buy a $500k shoe box for cash, but the outrageous valuations and the overall irrationality of the market has kept us away from this. Additionally, we have never really liked Edmonton where we have lived for last several years. So while we were debating whether we want to live here, the real estate prices zoomed into stratosphere giving us one more reason to leave this city.
We might move to Calgary, which is a lot better place than Edmonton, though even pricier.
So why do I write this? Simply because I've witnessed at least three 'bubbles' in my life so far. Every bubble starts the same way and unfortunately, for a lot of people ends the same way. A lot of bystanders get sucked into the frenzy and mania and sets people back by a few years at least. I've seen two very good friends buying additional properties in May this year despite being very uncomfortable owning their primary homes until last year. This blog is a forum for me to share (hopefully) some useful information with others who are contemplating buying in this market or just want to get an alternative perspective on Alberta real estate. That's why I welcome inputs from everyone-bulls, bears or bystanders.
I do not make any money from this blog, I do not sell real estate and I do not own any commercial or residential properties in Alberta. I might want to buy something in Alberta if the valuations corrected significantly. Or we'll just move from this province as our professional skill sets and business holdings are very transferable and not dependent on the energy sector.

And to the readers who come from the 'other world'- Bob Truman's or Sheldon's blog, you are very welcome here. Unfortunately, the blogging platform is not smart enough to distinguish between who is the real person and impersonation can occur. But your inputs and comments are welcome and provide ingredients for good discussion.

Thanks for your continued support and I'll hopefully keep on writing this till we are in Alberta.
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