Vancouver's Real Estate Market

[Ch28]

Posted this in the election thread earlier, but it applies in here as well

New York Times Exposes BC Liberal Corruption with regards to Real Estate

"Participating companies have created few jobs, according to government figures, while more than 140 million Canadian dollars ($106 million) have been doled out in tax refunds since 2008, when the initiative was expanded."

“The government is selling B.C. as a tax haven for the global elite to park investment here, but not have to contribute.”
"At one point, the tax breaks were projected to create more than 13,000 jobs in British Columbia. According to ministry figures, though, fewer than 300 have been created as a result of the program, and possibly as few as 122."

"Experts say that with few public details, it is hard to tell whether the plan is worth the lost tax revenue. They also say the lack of disclosure prevents the public from knowing if companies are using the province as a pit stop on a global quest to avoid taxation."

"The tax breaks favor foreigners in other ways, too. Companies can receive refunds on real estate activities with foreigners, including mortgage loans on property in Canada for international buyers. Conducting the same domestic activities for Canadians would not qualify for the refunds. This has raised concerns that the tax refunds may encourage banks and other companies to prioritize foreigners over Canadians in Canada’s overheated housing markets."

tl;dr: Government finances the purchase of property to foreigners through tax breaks that are not available to citizens. The tax breaks are paid for by the citizens who pay tax, those corporations benefiting from the breaks are tax exempt, of course, or taxes at the CCPC rate, which is designed to encourage and promote small businesses in the province.

[hud 91gt]

Originally Posted by Tapioca

The census is conducted every 5 years. The government has 3 sets of census data over the last decade.

Maybe i'm way out to lunch, I was under the impression somewhere in the last decade Harper put huge cuts in the census (Or even cancelled) for budget cuts.

[Harvey Specter]

So studio apartments with no parking which are usually around 420-450sq/ft in DT are now selling for $475k-$500k. For perspective, the same units were selling for around $400k a few months ago. Unreal.

[nah]

Originally Posted by Harvey Specter

So studio apartments with no parking which are usually around 420-450sq/ft in DT are now selling for $475k-$500k. For perspective, the same units were selling for around $400k a few months ago. Unreal.

Thanks for the interest free loans Krusty!

[Hondaracer]

Originally Posted by nah

Thanks for the interest free loans Krusty!

Personally I chuckle moreso at the people who voted in Justin thinking affordable homes were coming along with the liberal platform.

Everyone should have known christy had no intention of actually pulling the trigger on any tangible affordability effects. Justin however I saw a few people voting for him based strictly on affordability and monies in der pockets

[68style]

^ What kind of idiot thinks the federal government is going to do anything to lower housing prices in BC?

[Hondaracer]

Originally Posted by 68style

^ What kind of idiot thinks the federal government is going to do anything to lower housing prices in BC?

Dumb dumbs

[Harvey Specter]

A few sample studio sales from April...

Yaletown - 432sq.ft - list: $479,000 sold: $512,000
Downtown Robson - 500sq.ft - list: $524,800 sold: $515,000
Downtown Drake - 465sq.ft - list: $529,000 sold: $515,000

[Hondaracer]

Lol... $1,180 sq/ft on that yaletown box

[Z3guy]

Originally Posted by Harvey Specter

So studio apartments with no parking which are usually around 420-450sq/ft in DT are now selling for $475k-$500k. For perspective, the same units were selling for around $400k a few months ago. Unreal.

I have been watching/buying Studio apartments closely. Not sure where you have been looking Harvey Specter, but this is what I see;

Yaletown: $900 to $1300 per ft
Gastown: $750 to $1000 per ft.

Allot of people in Gasttown advertise at $700 to $800 a ft but they always go above asking.....

[dat_steve]

Originally Posted by Harvey Specter

A few sample studio sales from April...

Yaletown - 432sq.ft - list: $479,000 sold: $512,000
Downtown Robson - 500sq.ft - list: $524,800 sold: $515,000
Downtown Drake - 465sq.ft - list: $529,000 sold: $515,000

omgad!! sold for 10k below listing tho! panic! crash!

[Z3guy]

Originally Posted by Hondaracer

Lol... $1,180 sq/ft on that yaletown box

from an investment standpoint it is not so bad, because if you put down 25% on $500K, your mortgage will be approx. $1400, maintenance $250, property tax $100, $50 insurance for a monthly total of $1800. The cheapest rent you can get in Yaletown is $1700 per month.......

[Hondaracer]

I agree, in my mind though it's very hard for me to invest into a unit which I would never consider living in myself.

However, that was a $150,000 mistake I made about 4 years ago when a developer we were working with offered me a unit that wasn't selling for below list (335k I think) in south surrey. A year later the neighboring unit sold for 520

[Z3guy]

^ I know it is tough to buy something you would never live in, but people buy stocks in a company that they would never actually buy their product, same kind of thinking when it is an investment......

[nah]

Gary Lamphier: In Vancouver, houses generate higher incomes than people | Edmonton Journal

[nah]

Another good article about how foreigners are treating Heritage status homes. The City should fine the shit out of the owners for letting it rot or not give them a permit to build a new house on the lot when this one falls.

Abandoned and flooding Vancouver house raises fears for next door neighbour - British Columbia - CBC News

[Mr.HappySilp]

Originally Posted by nah

Another good article about how foreigners are treating Heritage status homes. The City should fine the shit out of the owners for letting it rot or not give them a permit to build a new house on the lot when this one falls.

Abandoned and flooding Vancouver house raises fears for next door neighbour - British Columbia - CBC News

Lol foreigner that invest in the housing market don't care shit about heritage house coz to them it doesn't look good. They want to build giant homes that covers most of the lot with 15+ bedrooms and they don't care as long as it looks like is build with money (such a Trump's gold color apartment). It lacks any class or personality.

[Hondaracer]

Instead of banning the demolition of the heritage homes they should just force developers and owners to build to a certain style that suits the neighborhood.

Imo that house in the article is not "heritage" it's jammed up beside an industrial complex on a busy road with a shit tonne of new infrastructure and buildings. I can almost guarantee you it does not have any sort of historical designation they are just using the term heritage due to the age.

My house was built in 1908 and it has no designation even though it has quite a bit of "character" the money involved in an extensive reno would be redicuous for most places and if push came to shove and I was being held back from tearing down and rebuilding I'd probably just burn my own place down or cause enough structural damage to deem it a write off.

[MarkyMark]

Nothing looks worse than some monstrosity that doesn't fit the neighborhood it's in. The EI's we're/are notorious for this, building some huge pink house in an older neighborhood with houses a quarter of the size.

[Manic!]

Originally Posted by MarkyMark

Nothing looks worse than some monstrosity that doesn't fit the neighborhood it's in. The EI's we're/are notorious for this, building some huge pink house in an older neighborhood with houses a quarter of the size.

Go big or go home. Only the first few houses will look out of place.

[MarkyMark]

I don't mind big, but I do mind big and ugly.

[Tapioca]

Craftsman or Tudor, or go home.

Brick, shingle, or Hardie plank, or a combination of them. That's it.

[DragonChi]

YouTube

[imp>dom]

hey guys.. I got a scenario and I need your opinion. Currently i have an investment house in cloverdale which prob worths 850k. Bought for 637k a year ago with 30% down. So now I am thinking to let it ride and buy more for investment. I can either #1 pull equity from my house and buy 1 house around 700k in Langley, Mission or Abby. #2 sell my house and buy 2 around 700k also out in Langley, Mission or Abby. It seems I could only afford these areas if I wanted detached houses but also because of their potential. There could be a #3 if I wanted condo closer to Vancouver. What do you guys think is the best?

[hypediss]

imo a forum is the last place you should be asking advice relating to investments, especially of this amount...

everyone here can claim to have knowledge or some theory of the market but no one would be accountable to the outcome of it