Vancouver's Real Estate Market

[Great68]

Originally Posted by Ferra

making 2 millions plus in gain while paying <$300K in taxes is hardly "destroyed"...

I never understand why people who sit in a house, do nothing and made millions in profit is not taxed and while your hard earned income working 50 hours a week is taxed at like 40%.

As a homeowner, I wouldn't want to be taxed. But i didn't think this principal residence tax exemption thing is fair for everyone either.
(i.e. not fair to those people who couldn't afford to own a house, since their saving in investment is still taxed)

A primary residence is supposed to be thought of first and foremost as a HOME that may or may not happen to appreciate in value over many years of living in the home.

While houses are large "investments", they were never previously thought of as providing massive ROI's, these crazy year over year value gains are a fairly recent phenomenon.

Introducing a lifetime capital gains tax on primary residences may have the unintended effect of reducing housing inventory, as it might be less worth it for those people to sell and downsize.

[UFO]

I hope if my primary residence goes into a capital loss situation that the gov will provide me with an equal capital loss credit. HAH!

[J____]

Originally Posted by MrPhreak

Is there any areas of Surrey that are not sketchy and instead nice/safe?

I am totally unfamiliar with the entire area. If somebody can take a screen shot of a map, and then use MS paint to highlight both nice areas, and exceptionally bad areas, and then post it up it would be greatly appreciated!

panorama ridge is nice. If i were to live in surrey thats the only place i'd buy

[winson604]

Originally Posted by punkwax

Dont forget property transfer tax. That's a lot of $ for some paperwork.

Totally not happy about the PTT. Bought a presale right before they announced the new threshold for PTT excemption hoping I would be good and while they did raise it significantly I just missed the cut so rather than saving 15k roughly I have to save 15k in cash sigh. Yea I know, boohoo right.

[J____]

Originally Posted by heleu

Nice article. I didn't detect entitlement, I think it's just natural frustration from people that earn decent money and still can't afford to buy anything.

My parents are still in the same house they bought in the 90s. They are definitely house-rich, cash poor. They will make multiples more selling their house than all the RRSPs they've tried to save up over the last 30+ years.

It's absolutely entitlement. Make $100k+ and still can't afford a home, then move elsewhere, or find another job that makes $500k so you can buy a house. Hoping for a bubble crash or asking the government to do something about it because you can't afford to live in a place you grew up in is definitely entitlement. Complaining in not having a vacation in the recent while, is entitlement. Most of the world's super rich, and I'm sure majority of the foreign investors in Vancouver's housing market doesn't even think about vacation when they were busting their ass in making money. Just like everywhere else desirable, if you can't afford whatever the expense to live there, move elsewhere. New york, London, Shanghai, are some of the more expensive cities in the world in terms of housing, 80%+ homeowners aren't local because they can't afford it, all they can do is complain and 'hope' for a bubble crash but sorry desirable places will always be overrun by the highest bidder.

BTW no super wealthy person is ever "cash rich" they have 90% of their assets tied up in real estate or other forms of investments. So it doesn't matter if you're not a homeowner but have a salary of 100k, you're still poor compared to the retired man with 20k savings and a fully paid off single family home in burnaby. So yes, I find that article very entitling.

[Shorn]

Just bought our first place Highgate/Edmonds area. 2 br 900 sq ft for $420k (even though one of the bedrooms I would consider to be more like a den). 20 year old building but nicely renovated, low maintenance fee, new roof.. not bad I suppose?

[J____]

Originally Posted by JDMStyo

Similar article covering both Toronto & Vancouver.
Praying for a real estate crash - Macleans.ca

Like it or not, people will compare themselves against their friends and peers. Keeping up with Joneses is more prevalent and more pervasive now especially with IG, FB, various social media platforms.
However, if it all crashes, where do you think government is going to keep getting tax dollars they're so used to with inflated property prices? All the higher construction and R/E related gigs (notaries, lawyers, appraisers, Red Seal trades) all drops a notch too. Scary thought but it's a self propagating sector propped up by continually low credit and low supply.

Full disclosure: Own property (sucker too and likely trading up). In the R/E as an insider if you call it that (licensed and invests)

Housing is not going to crash. Simple fact is land is finite but population will always be growing.


this article had a very good point:

"Everybody should be guaranteed shelter, but owning property in the city of our choosing is not a right."

[J____]

Originally Posted by noclue

This argument's been used in San Francisco,a finance and tech hub with similar land "constraints" and real estate got squashed there during 2001-2003 and 2008-2010.

SF and van have different demographics. People buy there because of tech, when .com bubble burst so did housing. Vancouver has no industry, housing goes up because people love the environment here and is a nice place to live. Unless our mountains crumble, forest catches fire, and ocean turns to acid, people will still continue to wanting to live here.

[punkwax]

Originally Posted by J____

panorama ridge is nice. If i were to live in surrey thats the only place i'd buy

There are nicer areas than Panorama Ridge in Surrey...

[J____]

Originally Posted by punkwax

There are nicer areas than Panorama Ridge in Surrey...

of course, I personally love the relative location of it and the surrounding. Just my opinion though

[Mr.HappySilp]

Originally Posted by Shorn

Just bought our first place Highgate/Edmonds area. 2 br 900 sq ft for $420k (even though one of the bedrooms I would consider to be more like a den). 20 year old building but nicely renovated, low maintenance fee, new roof.. not bad I suppose?

I say that's a pretty good deal. One Bedroom around metrotown area is going for 450+k, 2bedroom 850k+. Even brentwood area is going up pretty crazy. So 420k for Edmonds is good. Also older apartments tend to be bigger and also the people living there will be more respectable for the place. Lots of rental units in new apartments rented by students or people who simply don't care. Just yesterday i got the keys to my apartment was checking parking and someone park in my parking spot. I had to stop them and tell them that's MY parking spot, the guy was like but is only for a few mins. Sorry buddy but that's my parking, park at your own parking.

Originally Posted by J____

SF and van have different demographics. People buy there because of tech, when .com bubble burst so did housing. Vancouver has no industry, housing goes up because people love the environment here and is a nice place to live. Unless our mountains crumble, forest catches fire, and ocean turns to acid, people will still continue to wanting to live here.

Nah people buy here to offshore laundering money. How much people you actually see going hiking, camping, rafting or even just going to the park to enjoy the sun..... not that many. I do see many people going to Robson shoping, eating outs, Night market.

[Tapioca]

Originally Posted by Shorn

Just bought our first place Highgate/Edmonds area. 2 br 900 sq ft for $420k (even though one of the bedrooms I would consider to be more like a den). 20 year old building but nicely renovated, low maintenance fee, new roof.. not bad I suppose?

If it has a closet and a window, it's a bedroom, no matter the size.

That seems like a decent price these days. Congratulations.

[winson604]

Originally Posted by Shorn

Just bought our first place Highgate/Edmonds area. 2 br 900 sq ft for $420k (even though one of the bedrooms I would consider to be more like a den). 20 year old building but nicely renovated, low maintenance fee, new roof.. not bad I suppose?

Say what you will about the area. We can debate whether that's ghetto Burnaby or the flip side is where it's Burnaby afterall and close to SkyTrain and Metrotown hub. Regardless that's under $500/sq so I'd say that's pretty awesome. Congrats!

[Shorn]

Thanks all! It's definitely not the nicest part of Burnaby but I lived nearby for a few years and it's been getting better. And it's still 15 - 30 mins to work for me so it beats living out in the tri-cities or something (for me at least)

And now I work because I HAVE to not because I want to... these adult responsibilities..

Also if anyone's wondering we got in at 2.24% 5 year fixed. Completion end of the month, time to go furniture shopping!

[320icar]

Originally Posted by Shorn

Just bought our first place Highgate/Edmonds area. 2 br 900 sq ft for $420k (even though one of the bedrooms I would consider to be more like a den). 20 year old building but nicely renovated, low maintenance fee, new roof.. not bad I suppose?

Jesus. My fiancé and I are looking around Nanaimo, same age house as your apartment, same cost. But on 3/4 acre lot with a 2800sqft home with detached shop and a seperate suite.

I just can't do metro-van prices

[Traum]

Is Highgate / Edmonds still considered ghetto? The area immediately around Highgate Mall seems to be decent, although as you expand out further, it does get a bit run down.

But the Edmonds Community Center is a beautiful building in the area, and a huge a$$ condo is getting built on the eastern corner of Kingsway & Edmonds too, so the area is bound to look a bit nicer soon.

[Shorn]

Originally Posted by 320icar

Jesus. My fiancé and I are looking around Nanaimo, same age house as your apartment, same cost. But on 3/4 acre lot with a 2800sqft home with detached shop and a seperate suite.

I just can't do metro-van prices

We've been thinking about moving to Kamloops in the future.. I'm able to transfer up there with enough seniority and keep making the same money (in a few years). My coworker just did that and bought this place for less than asking.

3300 sq ft home, enclosed back yard, 7000 sq ft lot, 2 kitchens for around $550k.. hopefully prices there stay the same in a couple years

Originally Posted by Traum

Is Highgate / Edmonds still considered ghetto? The area immediately around Highgate Mall seems to be decent, although as you expand out further, it does get a bit run down.

But the Edmonds Community Center is a beautiful building in the area, and a huge a$$ condo is getting built on the eastern corner of Kingsway & Edmonds too, so the area is bound to look a bit nicer soon.

I feel like Edmonds northeast of Kingsway towards Canada Way is more ghetto, and less so as you head south. But the immediate area around the skytrain station can be ghetto as well (as with all skytrain stations)

[Hondaracer]

Might be biased cause I grew up there but besides the high end areas of white rock Fraser heights is one of the nicest hoods in surrey and the proximity to the highway is a huge plus

[twitchyzero]

even if an area we remember was seedy as shit growing up, it'll clean up with time.

look at how far east van has come

[Mr.HappySilp]

Originally Posted by Shorn

Thanks all! It's definitely not the nicest part of Burnaby but I lived nearby for a few years and it's been getting better. And it's still 15 - 30 mins to work for me so it beats living out in the tri-cities or something (for me at least)

And now I work because I HAVE to not because I want to... these adult responsibilities..

Also if anyone's wondering we got in at 2.24% 5 year fixed. Completion end of the month, time to go furniture shopping!

Hold off the shopping yet. I say go in first take some measurement and then decide what you need to buy and the size of your furniture. Also is good to have a budget. Luckily for me I can re-use a ton of stuff so it keeps the cost down (I can bring my bed, bookshelf, desk, sofa, lamp, dining table Co-worker is giving me her TV stand). So I only need a coffee table in terms of furniture =D

Keep in mind there is a lot of little things you also need to buy and they add up a lot. Just went to Ikea and spend over $100 on a coffee table a few accessories. And trust me it doesn't hurt to ask your friends.co-workers/family if they can give you whatever they don't need. Don't feel bad bumming stuff off people. You will need it. When you move out every penny saved counts.

[vash13]

I'd say go into the space and tape off where your furniture will go in the apartment before you buy anything. Then you'll really know if it fits. Especially your couch and dining table.

[Jmac]

Originally Posted by 320icar

Jesus. My fiancé and I are looking around Nanaimo, same age house as your apartment, same cost. But on 3/4 acre lot with a 2800sqft home with detached shop and a seperate suite.

I just can't do metro-van prices

If you're looking around Nanaimo, avoid the area south of Comox Rd, East of Pine St/Bruce Ave, and North of Seventh St.

But, yeah, you can get a pretty decent home for $400k pretty much anywhere north of the Malahat on the island.

[stewie]

Originally Posted by vash13

I'd say go into the space and tape off where your furniture will go in the apartment before you buy anything. Then you'll really know if it fits. Especially your couch and dining table.

There's a few sites you can go to where you build your room based off your dimensions and can then add furniture dimensions that you already have to see what space is available. Ikea might have one on their site because most of their stuff has the sides on it. Build your room on your pc so you don't end up buying something that you don't want because it's too large to fit.

[J____]

Also, I have to say it's easy for the government to make housing affordable for the locals if they really wanted to. They can easily make regulations so that if you want to buy a house in the lower mainland, you'll need to have an X amount of years in the local workforce paying tax before you can purchase a house. That'll drive out 90% of the foreign investments. They don't do this and instead apply a 15% tax for foreign investments and also introduce income tax on 2nd,3rd,4th property because THEY WANT THE TAX REVENUE from the increase in price and sales. In media they're going to say all the crap about how they'll change regulations blah blah blah to get your vote, but in reality locals are nothing to them compared to the foreign cash cow that'll fill their pockets. So no, the bubble isn't going to burst anytime soon, at most the government will think of a half-ass regulation to make you think they're doing something for the locals where in reality they're still going to leave some loophole so money can continue to trickle. Do you know how easy it is for new immigrants to get a loan? You can have no job, no real record of income, no property, and still walk out the door with at least 500k mortgage for a 1 million dollar home. I've been in Canada for 30 years and if I had no job no way in hell I'd get that kind of cash from the bank. Even with a 800k condo last year, I was only able to get max 300k line of credit. The government is not dumb, if they really wanted to they could of fixed the 'housing crisis' years ago before it even happened. If they do something significant to affect prices now or in the future and the bubble did burst, Vancouver will turn into Detroit and will have an economic crisis. Not only will people sans homes will be in trouble but all the current home owners will be in shit too. Housing will always go up, never down. Only thing that might happen is the increase will happen slowly rather that at the crazy rate we've been seeing. If you can't afford to buy now, chances are you'll never be able to afford a house unless you somehow significantly increase your income or move away. Simple as that.

[320icar]

^^ tl;dr

They won't ever impose some sort of rule like you said in the first few sentences. But you know what? I don't want them to. I like how diverse this city is, I like the influx of money and I like the condition of our city. Yes that means a lower middle class person like me can't afford a house, but I can afford everything else and i like living in a world class city. The amount of money metro van gets from immigrants (or 6 months of the year tourists) is insane. The city would never truly risk losing that