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-   -   Vancouver's Real Estate Market (https://www.revscene.net/forums/674709-vancouvers-real-estate-market.html)

Gerbs 10-25-2018 10:08 AM

Anyone know the pricing of the Kings condo in Toronto. That building looks bougie.

Liquid_o2 10-25-2018 11:14 AM

Man. So happy we locked into 2.64% in 2017. Yah we might have bought at the top of the market, but with the way interest rates have gone up, we likely saved thousands of dollars in interest.

Hondaracer 10-25-2018 11:27 AM

2.46 :awwyeah:

Although we did it in 2016 on a 5 year fixed so hopefully we’ve either paid off a decent chunk when we have to renew, or the rates have come down by then

CivicBlues 10-25-2018 12:50 PM

2.39 baby! Also in 2016. I don't see it going that low in 2021, barring a major recession. :pokerface:

lowside67 10-25-2018 12:51 PM

Quote:

Originally Posted by Liquid_o2 (Post 8925358)
Man. So happy we locked into 2.64% in 2017. Yah we might have bought at the top of the market, but with the way interest rates have gone up, we likely saved thousands of dollars in interest.

:lawl:

We just bought a house in Coquitlam.

Value in 2017 = $1,325,000 (identical house next door sold August 2017 - we actually went to the open but couldn't afford it) but mortgage rate would have been around 2.75%.

Value in 2018 = $1,225,000 (we close in 2 weeks) but our rate is 3.39%.

For rough numbers, over a 5 year mortgage I am going to pay about $18,000 in additional interest going from 2.75% but save $100,000 in principal.

It is a common misconception, but dead wrong, that a substantial interest rate increase makes a dent compared to a reduction in price. For clarity though, this was a total fluke for us - we just couldn't afford $1,325,000 and could barely squeak in at $1,225,000...

-Mark

quasi 10-25-2018 12:56 PM

I was almost 6% with my first place, these rates don't scare me brah. lol

Liquid_o2 10-25-2018 01:00 PM

Quote:

Originally Posted by lowside67 (Post 8925378)
:lawl:

We just bought a house in Coquitlam.

Value in 2017 = $1,325,000 (identical house next door sold August 2017 - we actually went to the open but couldn't afford it) but mortgage rate would have been around 2.75%.

Value in 2018 = $1,225,000 (we close in 2 weeks) but our rate is 3.39%.

For rough numbers, over a 5 year mortgage I am going to pay about $18,000 in additional interest going from 2.75% but save $100,000 in principal.

It is a common misconception, but dead wrong, that a substantial interest rate increase makes a dent compared to a reduction in price. For clarity though, this was a total fluke for us - we just couldn't afford $1,325,000 and could barely squeak in at $1,225,000...

-Mark

Depends what you are buying. Single family homes have come down considerably over the past year in the suburbs as demand has shrunk. The condo I purchased in Vancouver hasn't, and actually has slightly gone up over the past 12 months. It might come down, but we have already paid off close to 30% of the principal. Every situation is unique depending on product, location, etc.

Ludepower 10-25-2018 02:24 PM

These interest rates dont scare me (yet) haha. I feel bad for the people trying to get in though...seems like first time owners keep getting screwed.

Energy 10-25-2018 04:38 PM

A bit off-topic but I love when a 21 year old lady comes to my office needing help closing her purchase of a $4.5m Coal Harbour apartment.

She will be the only one on title but the parents are guaranteeing the mortgage.

Drow 10-25-2018 06:19 PM

Quote:

Originally Posted by lowside67 (Post 8925225)
Not only did it go up today, but the expectation per BMO's economists is now:
23% chance of another hike Dec 5/18 to 2.00%
80% chance of another hike Jan 9/19 to 2.00%+
86% chance of another hike Mar 6/19 to 2.00%+

Locked in our 5 year fixed a few weeks ago at 3.39%, feeling comfortable with that choice now.

-Mark

Best of BMO?

:gay:

yray 10-25-2018 06:29 PM

Quote:

Originally Posted by Energy (Post 8925424)
A bit off-topic but I love when a 21 year old lady comes to my office needing help closing her purchase of a $4.5m Coal Harbour apartment.

She will be the only one on title but the parents are guaranteeing the mortgage.

did you bang her?

Hondaracer 10-25-2018 06:51 PM

Quote:

Originally Posted by Energy (Post 8925424)
A bit off-topic but I love when a 21 year old lady comes to my office needing help closing her purchase of a $4.5m Coal Harbour apartment.

She will be the only one on title but the parents are guaranteeing the mortgage.

Shit like this should be rejected by all banks on principle.

My mom is a mortgage broker for coast capital and they started rejecting these a long time ago. Places like HSBC though will take anyone’s money.

meme405 10-25-2018 08:16 PM

Quote:

Originally Posted by quasi (Post 8925381)
I was almost 6% with my first place, these rates don't scare me brah. lol

Lots of older people (I mean like real old people, not RS old people), will remember the days back in the 80's when the interest rate was 10+%, but also houses were like 120k back then in vancouver, so even on an 80k mortgage your only paying like $1500/m.

But then you also have to think, back then minimum wage was like 3 bucks or whatever.

Anyway, I just locked in for 3 more years 2 weeks ago at 3.33. As someone said above; I'm hoping in the next 3 years I can substantially pay the thing down.

But hey, FX still needs a lot of work too, so you know fuck saving. amirite?

1.7El_guy 10-25-2018 09:03 PM

Quote:

Originally Posted by lowside67 (Post 8925378)
:lawl:

We just bought a house in Coquitlam.

Value in 2017 = $1,325,000 (identical house next door sold August 2017 - we actually went to the open but couldn't afford it) but mortgage rate would have been around 2.75%.

Value in 2018 = $1,225,000 (we close in 2 weeks) but our rate is 3.39%.

For rough numbers, over a 5 year mortgage I am going to pay about $18,000 in additional interest going from 2.75% but save $100,000 in principal.

It is a common misconception, but dead wrong, that a substantial interest rate increase makes a dent compared to a reduction in price. For clarity though, this was a total fluke for us - we just couldn't afford $1,325,000 and could barely squeak in at $1,225,000...

-Mark

Don't forget the stress test that came into effect in 2018. Mortgage qualifying rate of 2.75% versus 5.34%. If people waited, some might not even qualify to purchase the home this year (I guess that's the whole point of stress test). Definitely every situation is different.

Mr.HappySilp 10-25-2018 09:11 PM

Quote:

Originally Posted by Hondaracer (Post 8925438)
Shit like this should be rejected by all banks on principle.

My mom is a mortgage broker for coast capital and they started rejecting these a long time ago. Places like HSBC though will take anyone’s money.

Why should bank stop? What if the parents already have a property and to avoid paying the investment tax they use their daughter's name on the 2nd property? What if the parents wants their kids to have a place over their roof so their kids can "afford a place" while making $14 dallar an hour. Should the bank stop coz you feel this is not right? Does it really matter to you if parents want to help their kids out?

R1CED` 10-25-2018 09:21 PM

6% crew checking in
IMO if you can't stress test at 5%, you shouldn't be buying at that level ( I know I know, you can't get shit for like 350k any more)

Traum 10-25-2018 10:00 PM

Quote:

Originally Posted by Energy (Post 8925424)
A bit off-topic but I love when a 21 year old lady comes to my office needing help closing her purchase of a $4.5m Coal Harbour apartment.

She will be the only one on title but the parents are guaranteeing the mortgage.

Kinda surprised that they still needed a mortgage... :pokerface:

Hondaracer 10-26-2018 07:21 AM

Quote:

Originally Posted by Mr.HappySilp (Post 8925482)
Why should bank stop? What if the parents already have a property and to avoid paying the investment tax they use their daughter's name on the 2nd property? What if the parents wants their kids to have a place over their roof so their kids can "afford a place" while making $14 dallar an hour. Should the bank stop coz you feel this is not right? Does it really matter to you if parents want to help their kids out?

Because there is no tracing most of this money.

People list real estate as an income source with zero proof as to where the income was generated, thay is why some institutions refuse to back these loans.

All of this is a direct result to the current situation we are in, that’s why it shouldn’t happen

Hakkaboy 10-26-2018 09:21 AM

Quote:

Originally Posted by Energy (Post 8925424)
A bit off-topic but I love when a 21 year old lady comes to my office needing help closing her purchase of a $4.5m Coal Harbour apartment.

She will be the only one on title but the parents are guaranteeing the mortgage.

Do cases like these get reported up to FINTRAC and/or CRA? If not, they should be.

JDMStyo 10-26-2018 03:44 PM

Presales updates:

SURREY - where it's at these days!
ONE Central The $199K units... yeah...
Contract starting tomorrow - 13th, 30, 33rd floor allocation and some random ones for our group. 344FT for $299K range - basically similar to Avani Center few months back.

AVANI Center
Launch is this weekend - Hilton downstairs, upscale condo upstairs. Shared amenities, near Surrey King George. Virani the builder, not the brokerage one (confusing).

Holland
Townline's a great local builder - should be a good one 1-3BR - expect $950/ft minimum. Early 2019

BRENTWOOD
Gilmore Place 2
VIP previews starting. Best corner Gilmore/Lougheed starting.

AKIMBO
IMANI (who did Windsor) and smaller lowrise Main/King Ed is doing a highrise at Brentwood.
Park George
Concord's latest addition to King George - 1BR all gone basically. Select tower 2 units available to early guys - let men now if interested. $450K range for 1BR basically w parking.

ABBOTSFORD
Spruce
Starting to see presales out here - JESUS... $250K one beds.

Vancouver
Oakridge
Previews starting - $2000/ft to start. Basically for real BALLERS as 1BR are in the $1.2M+ range.
5+ towers all around the new redesigned Oakridge area.

Coquitlam
Sophora Park

Beautiful new design and balcony - Polygon builder. 2BR and up so realy hitting the family types but nice start price $599K for 800ft +. Near Skytrain & Coquitlam Center. I'd get this one.
Preview this weekend & sales to insiders as well.

Mr.HappySilp 10-26-2018 03:50 PM

Quote:

Originally Posted by Hondaracer (Post 8925530)
Because there is no tracing most of this money.

People list real estate as an income source with zero proof as to where the income was generated, thay is why some institutions refuse to back these loans.

All of this is a direct result to the current situation we are in, that’s why it shouldn’t happen

That's sound like the feb govt step in and find out where the money is coming from not something a bank should "stop". Banks are here to make money withing the policy set by each banks and within the law of Canada. Or the feb can introduce new law/policy instead.

bobbinka 10-26-2018 05:10 PM

Quote:

Originally Posted by Mr.HappySilp (Post 8925621)
That's sound like the feb govt step in and find out where the money is coming from not something a bank should "stop". Banks are here to make money withing the policy set by each banks and within the law of Canada. Or the feb can introduce new law/policy instead.

Did you type this with one hand on your phone while driving?

Peturbo 10-26-2018 07:37 PM

Just signed for 5yr variable at 3%. starting to feel like I should've locked in a fixed rate months ago.

JDMStyo 10-27-2018 12:13 PM

Rate hike is inevitable with the current markets. Only question is how fast can the Canadian government afford to do it.

Lastest notes from Central bank show just how out of touch Canadian bankers are with the rest of the world. David Rosenberg puts it best...

https://business.financialpost.com/i...anada-believes

Quote:

The first line said it all: “The global economic outlook remains solid.” Obviously, the BoC didn’t see the extremely soft PMI readings out of the Euro area Wednesday or the recent weak macro readings out of China.

How does “solid” comport with the fact that the Organization for Economic Co-operation and Development’s leading indicator has declined now for nine straight months, and is at its lowest level since the Brexit scare in July 2016?

How can anyone in their right mind declare that the outlook is anything close to constructive when the Chinese stock market is down nearly 30 per cent from its highs, the ex-U.S. global MSCI is off nearly 20 per cent from its 2018 peak, the entire world equity index is down 11 per cent and the TSX is down seven per cent?

We have corrections or bear markets in 38 of the 47 of the members of the MSCI global stock market composite and the BoC said “global financial conditions remain accommodative.” Is that true in Italy, too?

What is truly laughable is that right at the same time the bank released its statement, adding in that “the U.S. economy is especially robust,” U.S. September home sales data were released and showed a whopping 5.5-per-cent plunge to its lowest level (553,000 units at an annual rate) since December 2016.
If BOC listens to the advice financial market is telling it - we may see a slower hike back to 6% prime the next 3 years. If it's faster...then the real estate + banking sector will be in a world of hurt taking everyone else along with it.

6thGear. 10-27-2018 03:57 PM

Quote:

Originally Posted by Peturbo (Post 8925651)
Just signed for 5yr variable at 3%. starting to feel like I should've locked in a fixed rate months ago.

Do you have a rate discretion or trigger rate?


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