Vancouver's Real Estate Market

[zyzzjr]

Congrats. What did you buy and how much?

[m4k4v4li]

Originally Posted by Tapioca

Look at who's moving into the average Vancouver special on the East Side. The change in demographics in neighbourhoods like South Main, Hastings Sunrise, or Cedar Cottage has been striking.

The median household income of those households with children is actually higher in Vancouver than it is in Toronto. I think there are more power couple families in this region than people would like to acknowledge. For example, the median household income of households with children in certain parts of the City of Vancouver is nearly 200K (e.g. Yaletown) based on the last census.

There are fewer and fewer detached homes in Vancouver every year because of rezoning and development. Now that the gap between condos and detached is closing fast, eventually, some of these power couples with children will want to trade up.

very interesting

is it a sizable demographic however, enough that will impact the market for landed properties?

[JDMStyo]

Gong Hay Fat Choi! Busy week working mostly on:

Wynwood Green Tower 2
Select 1BR $580K 620 ft
2BR $680-750K 850sq ft

Big surprise so far this week...
Pier West starting - select 1BR for our clients.
$725K 35+ story units. 588-650sq ft 1BR and 1BR+Den Only.

$1,000+ per feet in NEW WEST. And selling strong...supposedly?

[Hondaracer]

the views from those towers (at least the North/East/South Facing) units will be pretty good and much better than a lot of the Burnaby towers going up

still kind of a shitty area though, its not whalley but still a lil dirty and bums etc. roaming around. Everything in walking distance though and i think it will clean up pretty quick though

[GLOW]

Originally Posted by hud 91gt

As one of the forums most pessimistic real estate posters, you can thank me for finally purchasing in this retarded market and shortly thereafter will see see everything fall on its face. Your welcome but that’s ok, because it needs to happen.

Originally Posted by zyzzjr

and how much?

the answer for most people here is...

Spoiler!

....

[hud 91gt]

Originally Posted by zyzzjr

Congrats. What did you buy and how much?

Posted a few pages back. 1360 sq/f 2 bed townhome at the going rate for PoCo.

Although I still think we’re going to have some serious trouble in the housing market in the next year or two, I don’t think the newly proposed .5-2% speculation tax and 5% increase in foreign buyers tax is going to do much.

[zyzzjr]

Originally Posted by hud 91gt

Posted a few pages back. 1360 sq/f 2 bed townhome at the going rate for PoCo.

Although I still think we’re going to have some serious trouble in the housing market in the next year or two, I don’t think the newly proposed .5-2% speculation tax and 5% increase in foreign buyers tax is going to do much.

The speculation tax will incur every single year. 0.5% in 2018 and 2% every year there after.

For example on a 1 million dollar condo it would be $5,000 in 2018 - $20,000 in 2019 - $20,000 in 2020 - $20,000 in 2021.. on and on...

Stacked with the 1% empty home tax? Thats $30,000 a year on $1 million condo.

They're also removing the interest-free $37,500 1st-time B.C. home buyers loan program, which means less demand.

Along with rising interest rates, the market seems pretty risky, I'm getting out as soon as possible.

[originalhypa]

Originally Posted by zyzzjr

Along with rising interest rates, the market is seem pretty risky, I'm getting out as soon as possible.

Paid $620k for my current Whistler place a few years ago. The realtor wants to list it for $1.3m and thinks it will sell within the month.

So you can make money in the market, but what if it bounces back like it has done for the last decade? Then what are you left with other than a wad of money that is worth less than it was before?

Money is a depreciating asset. Housing typically isn't, although this bubble has been going strong for a much longer time than it should have.

[Tapioca]

The speculation tax is a nice gesture, but the reality is that the damage has been done. Lots of expats living in high priced houses and condos do actually work, but their incomes are detached from their incomes as many of their homes were purchased by cash or with small mortgages.

The original speculation tax proposal from Tom Davidoff et al would have tied the speculation tax and offsets to the amount of income tax paid. It would have forced those with low incomes living in high priced homes to make some tough choices.

[TouringTeg]

Originally Posted by Harvey Specter

In regards to inventory I personally think you'll see an increase. You have a lot of people who own secondary rental properties who will see the market changing, panic and unload and you also have builders with multiple properties that will need to unload.

I would wait, prices will come down. There is nothing in the immediate future that indicates to me we'll see a jump in prices. Rates are going up globally and we'll probably see further restrictions to foreign ownership and a clamp down on money laundering.

I own two rental properties in Victoria (3 doors) both purchased about 5-7 years ago.

Monthly net revenue has increased in the past two years. Vacancy rate is about 0.7% last I checked.

I think the fact that rents have been rising has made it more profitable for landlords. Increased profits creates incentive to hold on to rental properties even if prices soften. My outlook is sell them both in the next 5-8 years.

[Mr.HappySilp]

Originally Posted by TouringTeg

I own two rental properties in Victoria (3 doors) both purchased about 5-7 years ago.

Monthly net revenue has increased in the past two years. Vacancy rate is about 0.7% last I checked.

I think the fact that rents have been rising has made it more profitable for landlords. Increased profits creates incentive to hold on to rental properties even if prices soften. My outlook is sell them both in the next 5-8 years.

what if the market crash in the next 5 to 8 years like back in the early 90s and early 2000s? will you still make money or break even when you sell> I think that's the question.

[Traum]

Originally Posted by Mr.HappySilp

what if the market crash in the next 5 to 8 years like back in the early 90s and early 2000s? will you still make money or break even when you sell> I think that's the question.

Early 90's or early 2000's levels? Even at early 2000 levels, you do realize how incredibly big of a drop this will require, right?

If something of that magnitude were to happen, everyone in the province will have far more to worry about than just being under mortgage debt.

[Harvey Specter]

Originally Posted by TouringTeg

I own two rental properties in Victoria (3 doors) both purchased about 5-7 years ago.

Monthly net revenue has increased in the past two years. Vacancy rate is about 0.7% last I checked.

I think the fact that rents have been rising has made it more profitable for landlords. Increased profits creates incentive to hold on to rental properties even if prices soften. My outlook is sell them both in the next 5-8 years.

Not too many people buying houses in Vancouver had intentions to hold for 5-8 years. A lot of people bought into the hot RE market craze by borrowing against their own house with the intention to flip and make a profit. You also have a lot of builders who purchased property as future projects who will have to unload eventually seeing how housing starts are declining.

[Mr.Money]

got a spot in navio at the Creek and i see realtors already flipping for 1.3 more than asking price.

[zyzzjr]

Thoughts?

B.C. housing taxes could put recent buyers underwater on mortgages

Housing taxes could put recent buyers underwater on mortgages | Vancouver Sun

[Traum]

IMO, this ^^ should not be a problem. As the article says, those who are most at risk are the ones who have purchased within the last year. However, those who bought that recently would almost certainly be very early in their mortgage terms. As long as they are making their payments, it doesn't matter and the bank has no reason to harrass them anyway. And when the new home owner signed on for the mortgage, they should at least have the minimal sense that they can continue to service that mortgage at a similar interest rate, meaning they can roughly continue to pay back the same dollar amount every month.

Yes, they will be losing money, and that is unfortunate. But that is always a known risk when you enter into a RE market like that. IMO, the important part is that the bank won't / can't come after them asking for more money right away. By the time their mortgage renewal is up, the market should have stabilized / recouperated enough that these new home owners would not be too severely stuck under the water. They have lost money, maybe, but it shouldn't be enough to force them into a foreclosure.

The additional property tax for those who's house has broke through the $3M mark is a big problem. I have pretty much bxtched about this at least a few years ago in this very same thread regarding my parents place because we bought it for $200k 30 years ago. For us, our property is nowhere close to being worth $3M, but the phenomenon is just the same, although on a smaller scale. Some have pointed out the same property tax deferral as a "viable" option, and it sort of is. But I share the same exact sentiments as the person in the news article:

“Essentially, what this punitive tax increase is going to do is make me go back into debt and have debt on the house, something that I have been working 40 years of my working life to make disappear, and indeed thought that I had,” he said. “It’s an option, but it’s a very sad option as far as I’m concerned.”

[donk.]

Originally Posted by zyzzjr

Thoughts?

B.C. housing taxes could put recent buyers underwater on mortgages

Housing taxes could put recent buyers underwater on mortgages | Vancouver Sun

another shit article

NEXT

[hchang]

Originally Posted by Mr.HappySilp

what if the market crash in the next 5 to 8 years like back in the early 90s and early 2000s? will you still make money or break even when you sell> I think that's the question.

Originally Posted by Traum

Early 90's or early 2000's levels? Even at early 2000 levels, you do realize how incredibly big of a drop this will require, right?

If something of that magnitude were to happen, everyone in the province will have far more to worry about than just being under mortgage debt.

As long as Canada holds its current position on immigration, market will not crash.

[zyzzjr]

YouTube

[Ludepower]

Originally Posted by zyzzjr

Congrats. What did you buy and how much?

Originally Posted by zyzzjr

Along with rising interest rates, the market seems pretty risky, I'm getting out as soon as possible.

Congrats. What did you buy and how much you selling for? Welcome to the thread.

[zyzzjr]

[nah]

Originally Posted by welfare

But the government thinks it's a supply issue

Correction, the corruption Liberals under Krusty said it was a supply issue. There should be a special investigation into Krusty like they did with Glen Clark back in the late 90s. I bet you would find something there...

[Mr.HappySilp]

Originally Posted by nah

Correction, the corruption Liberals under Krusty said it was a supply issue. There should be a special investigation into Krusty like they did with Glen Clark back in the late 90s. I bet you would find something there...

You could literally find something with any politicians these days.

[JDMStyo]

Brentwood
Concord Brentwood $700K for 1BR + parking space (550sqft roughly) working out to about $1300/sqft. Writing yesterday+

Lumina next door is a bargain by comparison.
$600ks 1BR

New Westminster
Pier West
$1100/ft avg
$650-700K 35+ FL 650sq ft Units
$850-$980+ 30+ FL 850sq ft 2BR Units

Cambie Corridor
Marquis
Not bad considering... $1300/ft
Great area - 1BR in $800ks.

Main & 20th (LANDA) project
All lofts 1BR sold out $799K for 650sqft.

SFU Mountain
Fraser by MOSAIC
$800/ft likely but possibly higher
Sale should start mid March for this wood frame low rise
If UBC is over $1100/ft at Noble Walk with leasehold land, this is probably going higher.

[G]

I'm sad I didn't keep my Concord Brentwood contract 475k for 1 br with 1 parking and 1 storage on the 30th floor facing SFU