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This whole thing has been very interesting for me and my family.

We bought a new house in June at the height of the market. We had planned on only moderately increasing our debt level (well, moderate for Vancouver) to upgrade. We were planning on selling in a very desirable neighbourhood and bought in a developing one. It was all going to work well.

Then the market slowed. Granted we did not have the best agent and we were not ready to sell until the end of June, but things started to slow from the beginning of June through to the end of June.

We received one offer that was a low-ball, about $100k less than we wanted. We decided to take it but then their financing fell through. In mid August, about 2 weeks prior to closing on our new house, the bank said they would back us and allowed us to own two homes (it probably helped that we had practically no mortgage on the old house). We're now renting out our old home and are fine.

The problem here isn't our situation, because we are conservative and could handle it. The problem is all of the other people that bought in May through July who couldn't. We won't ever hear about them but my guess is that a lot of people took some really low-ball offers simply because they had to sell at any price.

Our current plan is to evaluate the market in the spring and probably sell this spring or next, depending on the circumstances.

This tax hurt Canadians way more than it hurt foreign investors.

Simon
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