Vancouver's Real Estate Market

[asian_XL]

my sister in law works in Asia, so her family has to rent the 1100sq ft (3 bedroom) apartment out near Oakridge for $3500 to avoid being taxed. I am surprised how crazy rent has gone up.

Assuming 1/3 of the family income goes to rent, someone should make well over 10k to afford rent.

[DragonChi]

Oakridge in Vancouver?

[68style]

What does the amount of rent charged have to do with avoiding tax?

[sonick]

Originally Posted by 68style

What does the amount of rent charged have to do with avoiding tax?

Empty Homes Tax | City of Vancouver

[Tapioca]

Vancouver Real Estate Condo & Townhouse Report May 2017

Well, it looks like strata properties aren't slowing down anytime soon.

https://www.zolo.ca/port-moody-real-...anie-drive/228

This one I mentioned a couple of days ago sold in 4 days before the open house.

An article from the normally bearish Georgia Straight about the potential vulnerability of the NDP's reliance on stamping out speculative activity in the market:

http://www.straight.com/news/918871/...ontinue-rising

[Ohkun]

Ok guys,

To give you an idea of how carzy 1bd market is,
Here's some real numbers to you guys.

I was out there 'trying' to buy new 1bd condo.

Highgate
2102 7325 Arcola St
Esprit - 10yr old highrise built by Bosa
618sqf
Listed $419k sold for $480k
my offer was only 450k


Edmonds Station
403-7428 Byrenpark Walk
lowrise, 633sqf
Listed $409k, sold for $465
again.. I only offered $450

Burquitlam,
Uptown2 by bosa.
22nd floor 570sqf
Listed $448k, sold for $475 no subject.
I offered $488 subject to finance. but someone with no subject got the unit.

ppl started putting down no subject offers on 1bd condos now..
jesus....

[jing]

People were already throwing down no subject offers on 1br last year when I was looking. Ended up buying a place for below asking and with all subjects. No way I could afford those prices now.

[Badhobz]

Originally Posted by Ohkun

Ok guys,

To give you an idea of how carzy 1bd market is,
Here's some real numbers to you guys.

I was out there 'trying' to buy new 1bd condo.

Highgate
2102 7325 Arcola St
Esprit - 10yr old highrise built by Bosa
618sqf
Listed $419k sold for $480k
my offer was only 450k


Edmonds Station
403-7428 Byrenpark Walk
lowrise, 633sqf
Listed $409k, sold for $465
again.. I only offered $450

Burquitlam,
Uptown2 by bosa.
22nd floor 570sqf
Listed $448k, sold for $475 no subject.
I offered $488 subject to finance. but someone with no subject got the unit.

ppl started putting down no subject offers on 1bd condos now..
jesus....

what the fuck..... i was going to get another 2 bedroom so i can slumlord some poor tenant but at these prices for even a 1 bedroom. holy crap.

[supafamous]

Yeah, no subject is kinda the currency now. My friend and his wife just bought a house in New West that's 70 years old and they did no subjects to get it. They sold their townhouse to someone who was also no subjects - it wasn't the highest offer but it was close enough to make it worthwhile.

[hypediss]

When you guys say sign off, do you mean to complete? Or is it another process whereby inexplicitly sign off on acceptance of the repairs of the defects I pointed out?

If I refuse to complete until the defects are up to my standards wouldn't that make me at risk of not fulfilling my end of the contract if they decide to wait out on those specified repairs/replacement?

[hud 91gt]

Looks like Toronto is cooling. Time to load up on 400k condos before the craziness happens in 6 months like us. Ha

[Armind]

Those prices. Fuck me.

[Liquid_o2]

Originally Posted by Tapioca

What's the difference in price between the pre-sale and the value of the condos you're bidding on? If the difference is small to nil, that pre-sale will cost you more once you factor in GST and the mortgage you will sign onto in 2 years. Interest rates have nowhere to go but up and in 2 years, you will most certainly pay at least 0.5% or more. That pre-sale condo will also likely be smaller than current units on the market and will be built and constructed more poorly than what you're looking at.

Another strategy you could employ is to buy a pre-sale at 15% down, then continue shopping for a better older unit. Keep 5%, apply for the BC HOME ownership program to bump up your own payment, and make an offer for an older unit you like. Assign the pre-sale to someone else before you have to complete the sale in 2 years and take the profit and pay off your BC HOME loan. Risky, but worth thinking about.

The difference isn't huge between the presale and a condo that is 5 to 10 years old. It is a similar price range for New West. You are correct, that once you add in GST and a potentially higher interest rate, it makes it more expensive than purchasing an older home. Problem is, with such low inventory, we haven't found much that we like over the past 4 months, and what we do like is snapped up for ridiculous amounts.

I suppose from my viewpoint, is it better to slightly overpay for a presale (due to GST) and get exactly the floorplan, location, and finishings that we want? Or just wait and see if further inventory comes down the line this summer/fall? It's a hard decision and nobody has a crystal ball.

[Tapioca]

Originally Posted by Liquid_o2

The difference isn't huge between the presale and a condo that is 5 to 10 years old. It is a similar price range for New West. You are correct, that once you add in GST and a potentially higher interest rate, it makes it more expensive than purchasing an older home. Problem is, with such low inventory, we haven't found much that we like over the past 4 months, and what we do like is snapped up for ridiculous amounts.

I suppose from my viewpoint, is it better to slightly overpay for a presale (due to GST) and get exactly the floorplan, location, and finishings that we want? Or just wait and see if further inventory comes down the line this summer/fall? It's a hard decision and nobody has a crystal ball.

There's going to be more new supply coming onto the market in the next 2 years. When that supply comes online that may provide relief on the demand for older units. However, you are foregoing 2 years of equity in a rock-bottom interest rate environment.

I don't think inventory will increase significantly over the next 12 months. If you don't have to move over the next 2 years, then get that presale unit and start adjusting your lifestyle now so you are prepared to pay a higher interest rate and higher strata fees (they always go up in the first 2 years as strata councils figure out how to maintain the property). At the end of the day, buy a home you will be happy in.

[fliptuner]

Tapioca, how much did Klahanie sell for?

[westopher]

Keep in mind so much of this supply is in control of the same builders. There's no question they build with the plan of releasing slightly less than the demand to keep prices high. The amount of land these developers own and haven't touched yet is staggering.

[Tapioca]

Originally Posted by fliptuner

Tapioca, how much did Klahanie sell for?

Don't know (not a realtor, haha). But, I don't think anything sells in 4 days with a firm offer if it's not at least asking price.

[fliptuner]

Ahh, I thought you were. Was expecting it to go high 4's.

[Liquid_o2]

The 2 bed unit on Fraser and E 16th just sold for $75,000 over asking. Two special assessments coming up in the next couple years as well, including roof, skylights, parking membrane, and paving the parkade entry.

[Tapioca]

Originally Posted by Liquid_o2

The 2 bed unit on Fraser and E 16th just sold for $75,000 over asking. Two special assessments coming up in the next couple years as well, including roof, skylights, parking membrane, and paving the parkade entry.

So, 625k? To be fair, Fraserhood is the next Main Street.

Looks to be a flat roof building. Parking membranes are routine and one of the things no one likes to talk about. Our old building had a fountain above the parkade. What a great idea that was, right?

https://www.zolo.ca/burnaby-real-est...ax-street/1402

Check this one out. Last I heard, the strata was suing Onni for faulty windows. Worse case scenario, every owner forks over 10-15K for new windows.

Can't beat the location though. You want to be on the west side of Willingdon.

[Liquid_o2]

Originally Posted by Tapioca

So, 625k? To be fair, Fraserhood is the next Main Street.

Looks to be a flat roof building. Parking membranes are routine and one of the things no one likes to talk about. Our old building had a fountain above the parkade. What a great idea that was, right?

https://www.zolo.ca/burnaby-real-est...ax-street/1402

Check this one out. Last I heard, the strata was suing Onni for faulty windows. Worse case scenario, every owner forks over 10-15K for new windows.

Can't beat the location though. You want to be on the west side of Willingdon.

Yah. I live on Fraser now. I don't think you can call it the "next" Main Street, as there is already lots of coffee shops, restaurants, etc. It has already arrived and the prices fall accordingly with it. My question is what is the next Fraser Street?

One of the reasons we didn't even put in an offer on that unit is that it had an odd layout. No windows in the living area, only light you get is from the patio door which is angled towards a wall, and it faces north east. So it was really dark. Stays cool in the summer I suppose.

[ForbiddenX]

Originally Posted by Liquid_o2

The 2 bed unit on Fraser and E 16th just sold for $75,000 over asking. Two special assessments coming up in the next couple years as well, including roof, skylights, parking membrane, and paving the parkade entry.

Do you remember which one this was?


Speaking of offers my wife and I put in our offer subject free for our unit, 3 others were also subject free.

[Liquid_o2]

I believe the building is Vintage 16th or something along those lines.

[G]

Originally Posted by Ohkun

Ok guys,

To give you an idea of how carzy 1bd market is,
Here's some real numbers to you guys.

I was out there 'trying' to buy new 1bd condo.

Highgate
2102 7325 Arcola St
Esprit - 10yr old highrise built by Bosa
618sqf
Listed $419k sold for $480k
my offer was only 450k


Edmonds Station
403-7428 Byrenpark Walk
lowrise, 633sqf
Listed $409k, sold for $465
again.. I only offered $450

Burquitlam,
Uptown2 by bosa.
22nd floor 570sqf
Listed $448k, sold for $475 no subject.
I offered $488 subject to finance. but someone with no subject got the unit.

ppl started putting down no subject offers on 1bd condos now..
jesus....

Wow those prices are crazy...

There were tons of open houses this weekend and last weekend for the development I am in "Wall Centre Central Park". Maybe you can look into there?

I can't believe its still this bad

[Tapioca]

Originally Posted by Liquid_o2

Yah. I live on Fraser now. I don't think you can call it the "next" Main Street, as there is already lots of coffee shops, restaurants, etc. It has already arrived and the prices fall accordingly with it. My question is what is the next Fraser Street?

Look to areas with older retail. Older retail means better margins for experimental restaurants and low-margin coffee shops and bakeries.

Neighbourhoods in Vancouver that have older, under utilized retail strips which come to mind are South Hill and Joyce-Collingwood and Norquay, specifically along Kingsway.

Outside of Vancouver, I would say Burquitlam and Moody Centre.