Vancouver's Real Estate Market

[Expresso]

Originally Posted by melloman

I would love to own a duplex, but I'm not paying $800k-1mil to own HALF a property. Rather have a condo, and then jump to a home later on in life.

At the rate of detached/duplex prices are increasing the condo will never keep pace. The later in life may never happen, unless you are getting some big increments in salary each year.

[UFO]

Originally Posted by Tapioca

Are you inherently distrustful of strata councils? You could always join the council yourself if you want to have some control over how your property is managed and maintained in the long-term.

This is what gets me, even when I was heading the council back in the day. Never any shortage of ppl complaining about how things are done, but when it comes time to re-elect council it was like pulling teeth to get ppl on council. Everyone has an opinion and beef until they actually have a chance to do something about it

[Tapioca]

Originally Posted by Hondaracer

Any strata costs you big $$$ long term really, if you were to buy a freehold property with a rental suite, the cost to live in that type of property is almost zero compared to a strata. Especially a bad strata where your money is going no where.

Not sure if I agree if you're comparing similar properties in similar locations. The premium for a freehold property is pretty significant now. If you want to pay the same for a freehold property, you're likely buying that property in a different location.

Sure, a strata fee may not cover much, but even if it only includes snow removal, gardening, and insurance on the complex, you still have to pay for those things and more when you have a detached. If you value your time at zero, I can understand where the perception of savings would be. Unless you're holding the property for a long time (30 years), I am doubtful that the rents you collect would offset the difference between the purchase price of that property vs the purchase price of a strata property with strata fees today. The difference was probably not so large 15-25 years ago which is why I grew up with so many friends who had tenants in their basements.

[Hondaracer]

yea true, i just feel like at the end of the day with the freehold property you are virtually never obligated to pay upkeep costs lol.. until something breaks or needs replacing all you have to pay are utilities and property taxes, where as in your strata situation your paying those, and strata.. albeit like you said, at a lesser purchase price.

I'd say in a situation where you could put X amount down on the mortgage of a freehold home, and have a rent-able suite that would cover at least the interest on the mortgage, you are coming out ahead in puting the same % down on a strata duplex yet having to pay the strata fees.

Duplex's and high rises are one thing, but i find that the people who want to be in a townhouse strata situation, are for the most part, people who do not want to lift a finger when it comes to doing almost anything, like they cant even be bothered to pick up garbage in their planters if they see it. Drive in the garage, shut the blinds, live.

[Digitalis]

I can't think of any situation where anyone has been happy to have had a strata to deal with.
Your shoved to live in a matchbox with people who dont know how to wipe their own behind much less shut off a leak or what to do incase something happens.
One clown in a highrise DT decided it would be alright to hang their clothing on the sprinklers and where did all that water go? Right down into the elevator messing up the thing for a month while special parts had to be bought in from europe or something whacky.
I know your all socialists here and believe that free things fall from the sky, but at the end of the day.... If i break something.... I consider it a learning experience that i've paid for.
But if someone is an idiot you wind up paying anyway.

[ImportPsycho]

Originally Posted by Digitalis

One clown in a highrise DT decided it would be alright to hang their clothing on the sprinklers and where did all that water go? Right down into the elevator messing up the thing for a month while special parts had to be bought in from europe or something whacky.
I know your all socialists here and believe that free things fall from the sky, but at the end of the day.... If i break something.... I consider it a learning experience that i've paid for.
But if someone is an idiot you wind up paying anyway.

Hahaa wtf, samething happened to condo i used to own in Brentwood. Less than 6months in from completion, brand spanking new, clothes on to sprinkler. I was higher up so didnt damage my unit but next meeting, strata fee went up.... Wtf some ppl never seen a sprinkler before?

[UFO]

Your strata councils should be suing the owner of the unit for at least the deductible on the strata insurance claim, which should be covered by the owner's own condo insurance policy if he chose to purchase one. No reason the damages should jack up everyone's rates. The owners who let this happen are equally negligent IMO

Originally Posted by Hondaracer

you are coming out ahead in puting the same % down on a strata duplex yet having to pay the strata fees.

I think all of the du/tri/quadplexes we looked at previously were classified as strata properties, but whether a monthly maintenance fee was collected would be up to the owners to decide. And I think it's rare for a 'strata duplex' to actually have a monthly strata fee

[R1CED`]

Originally Posted by Tapioca

There's no free lunch when it comes to maintenance as you will have to pay for it in money and/or time eventually.

guess I'm in a very special case
growing up we had a compressor, power washer, even a tile cutter.

so i'm fortunate to have access to all these equipment...you're right about time but it'll just become weekend projects similar to how people work on their cars.

OK here's a stupid question since the Intenet seems to have a wide range of answers...for the typical tomehome in GVR do you actually own the land?

[Tapioca]

Originally Posted by R1CED`

guess I'm in a very special case
growing up we had a compressor, power washer, even a tile cutter.

so i'm fortunate to have access to all these equipment...you're right about time but it'll just become weekend projects similar to how people work on their cars.

OK here's a stupid question since the Intenet seems to have a wide range of answers...for the typical tomehome in GVR do you actually own the land?

Unless you own a freehold townhome (which is rare in GVR), you only own the space contained within the walls of your townhouse and an interest in the common property (like the roofs, gardens, driveways, etc). It's just like a condo, but you get exclusive use of a garage/carport and entry doors.

Whatever you want to do on the land that the townhome sits on is subject to the strata's by-laws. For example, if you want to run a home-based business with clients coming and going, you will likely need permission from the strata to do this. If you want to build a shed in your yard, you'll likely need to check the by-laws or get council approval because yards are often common property with exclusive use by the owner. You would have to check the survey and title of the townhome to be sure.

[Tapioca]

Originally Posted by UFO

Your strata councils should be suing the owner of the unit for at least the deductible on the strata insurance claim, which should be covered by the owner's own condo insurance policy if he chose to purchase one. No reason the damages should jack up everyone's rates. The owners who let this happen are equally negligent IMO

Absolutely, but I could see fees going up if the strata was required to make multiple claims in a year for sewer backup incidents. Their insurance premiums would likely rise. I've heard of some buildings having 100K deductibles for sewer back-up, which is crazy as I'm sure very few home insurance companies offer such deductible coverage for condo owners.

[Digitalis]

This does not surprise me at all. Most people dont know how things work and if it's out of it sight it's out of mind. So if you got some dumbass who likes to use their sink flat open without a strainer and constantly cause clogs further on down the line... Well enjoy the inconvenience of living with retards.

[skiiipi]

So I have a question about Toronto real estate.

I will be moving to Toronto for a new job in July and I'm debating on renting vs. Buying.

I want to be within walking distance to work so it would be the heart of downtown around Toronto Eaton center.
My requirement is min. 1 bed/bath , secure parking and in suite laundry
Rent would likely be 1800 to 2000 a month.

Similar condos in the area from what I see is around 500 to 550k for 600 to 700 sqft
With a $500 to 700/month strata fee.

I can put between 100 to 150k down for down payment. ...other wise the 150k is currently getting me about 4% ROI

What would u guys do in my situation.

I know likely owning will result in mortgage + strata + property tax to be close to $2500 to $3000
Which is more than the rent, but with potential of housing appreciation.
But I'm also worried about a price correction in Toronto (not familiar with that market at all) which would make it a bad investment decision.

[Tapioca]

Originally Posted by skiiipi

So I have a question about Toronto real estate.

I will be moving to Toronto for a new job in July and I'm debating on renting vs. Buying.

I want to be within walking distance to work so it would be the heart of downtown around Toronto Eaton center.
My requirement is min. 1 bed/bath , secure parking and in suite laundry
Rent would likely be 1800 to 2000 a month.

Similar condos in the area from what I see is around 500 to 550k for 600 to 700 sqft
With a $500 to 700/month strata fee.

I can put between 100 to 150k down for down payment. ...other wise the 150k is currently getting me about 4% ROI

What would u guys do in my situation.

I know likely owning will result in mortgage + strata + property tax to be close to $2500 to $3000
Which is more than the rent, but with potential of housing appreciation.
But I'm also worried about a price correction in Toronto (not familiar with that market at all) which would make it a bad investment decision.

4% ROI after taxes is certainly very decent. My indexes are all down.

It depends what your time horizon is. Do you see yourself staying in Toronto for 5+ years? That might be enough time to weather any short-term shocks to the market. If it tanks in 5 years, well you'll have experienced price appreciation in the years leading up that, so you'll be okay.

On the other hand, I think it's better to rent for at least a year to see if you like the city, like your new job, and to get a better understanding of the real estate market. My understanding of TO is that municipal governments are not as hesitant to re-zone agricultural land for new subdivisions. Condos are also sprouting up everywhere. You have pockets of development in GVR - Burke Mountain, Silver Hills in Maple Ridge, etc., but not to the same extent.

[winson604]

Originally Posted by skiiipi

So I have a question about Toronto real estate.

I will be moving to Toronto for a new job in July and I'm debating on renting vs. Buying.

I want to be within walking distance to work so it would be the heart of downtown around Toronto Eaton center.
My requirement is min. 1 bed/bath , secure parking and in suite laundry
Rent would likely be 1800 to 2000 a month.

Similar condos in the area from what I see is around 500 to 550k for 600 to 700 sqft
With a $500 to 700/month strata fee.

I can put between 100 to 150k down for down payment. ...other wise the 150k is currently getting me about 4% ROI

What would u guys do in my situation.

I know likely owning will result in mortgage + strata + property tax to be close to $2500 to $3000
Which is more than the rent, but with potential of housing appreciation.
But I'm also worried about a price correction in Toronto (not familiar with that market at all) which would make it a bad investment decision.

$500-$700/month for strata on a 1 bed? Holy fuck that's like half your mortgage on strata fees alone.

[buhdeh]

Unlike Vancouver, which seems to be against increasing density, Toronto has no problems at all with building 30-40 story condo towers EVERYWHERE.

I lived right on Bay street, close to Yorkville, for about a year and there was at least one condo being built in every direction. The rental market in Toronto is also huge so should you ever need to rent out your place for whatever reason, you can find someone to rent it almost immediately.

Personally, I would never buy a unit downtown considering how many renters end up occupying the buildings.

[SumAznGuy]

Originally Posted by winson604

$500-$700/month for strata on a 1 bed? Holy fuck that's like half your mortgage on strata fees alone.

To my understanding, in TO, they have to do a depreciation report every few years. It was made manditory hence why the high strata fees.

In Vancouver, it isn't required yet so you still see older buildings with cheaper fees and some with higher fees.
Biggest issues in older buildings is saving money for a new roof, hot water tanks and the CRF.

Someone said it on the last page. It is scary how there are bidding wars for places with very little CRF and no subjects to reading the meetings to see if there are any major up coming issues/deficiencies.

[Tapioca]

I had the opportunity to read a depreciation report for a newer complex that we made an offer on. To be honest, it didn't tell me all that much, aside from financial projections on how major maintenance projects can be funded. It gave me an idea on how much special assessments would be for a new roof, for example.

The minimum CRF contribution is 10% in BC. After having lived in a strata for nearly a decade, I can understand why councils are reluctant to fully fund the CRF to pay for major projects. It's far easier to charge special levies because people know exactly what the levy will cover. On the other hand, if you increased fees every year to ensure an adequate CRF to cover these projects, owners would not understand why they're paying increased fees.

A CRF is meant for absolute emergencies, not regular projects like a new roof or new windows.

[unit]

my landlords are selling. i'm pretty pro rent but now that i'm looking around at the rental costs around me, its hard to get a decent place in new west for even 14-1500 sometimes.
does make the buy argument a bit stronger when these same places sell for just about 300k, the mortgage + strata + prop tax is only about 400 more per month (at current rates)

[Hondaracer]

Had our buildings AGM last night, went surprisingly smooth compared to other years. I was contemplating running for strata council but the whole council from last year wanted to come back so I figured fuck it.

Not too much of note besides the replacement of our windows now looks like it's going to be closer to 2025 than 2019/20 like I had figured. Which is excellent in our outlook as we will likely sell before 2020 and with that 5 year time frame, it won't be that big of an issue for potential buyers.

Of course there are two Chinese ladies in the back trying to cut out every potential cost they deem unnecessary lol. Our building is 30 years old and the report is done by RDH who is notorious for being ultra meticulous with their reports, almost to a fault, but ours looks great so that's only a positive. This woman brings up her "friend" who's strata council and owners voted for puting off the depreciation report for the foreseeable future and she's wondering why we don't do that

Lol well I'm glad virtually everyone else spoke up instead of me and she kinda came under a shit storm with dirty looks etc lol. She then piped up about people smoking marijuana ans the smell coming in through her vents and filling her washroom lol, the strata council, then surprisingly kinda took the stance of, even the government deems marijuana a grey area and it's not like RCMP are going to show up so what can we do. While everyone else kinda balked at her from the previous comment lol

Dat strata gang mentality doe

[dat_steve]

Originally Posted by Hondaracer

She then piped up about people smoking marijuana ans the smell coming in through her vents and filling her washroom lol,

mmm hawaiian hotbox

[Mr.C]

Originally Posted by Scotsman

From The Province about "Rent or Own"

Rent or own? In the superheated Metro Vancouver housing market, the choice isn?t obvious | The Province

Relevant picture:

[twitchyzero]

^ Surrey and Langley makes more sense to rent than buy compared to E Van/Burnaby? seems off.

Originally Posted by unit

my landlords are selling. i'm pretty pro rent but now that i'm looking around at the rental costs around me, its hard to get a decent place in new west for even 14-1500 sometimes.
does make the buy argument a bit stronger when these same places sell for just about 300k, the mortgage + strata + prop tax is only about 400 more per month (at current rates)

yeah was in the same boat few months ago. Rented a briefly for a reasonable price...when I looked around again the vacancy was slim pickings and rates shot up (E Van back to school season 12 months apart)

[hud 91gt]

Is that chart for houses or condos? I'd say if they divided the two, you would see vastly different numbers.

[Mr.HappySilp]

Friend had a friend who is looking for a one bedroom apartment near metrotown. Makes me really want to sell my pre sale unit. I feel 1 bedroom is just too small (even for 1 person maybe coz I have too many junk). I feel I need at least a Den lol.

[Mr.C]

Originally Posted by hud 91gt

Is that chart for houses or condos? I'd say if they divided the two, you would see vastly different numbers.

Houses.

Condos are probably a solid buy, but as I mentioned earlier in the thread, it seems like people here avoid condos like the plague.