Vancouver's Real Estate Market

[JDMDreams]

Yea I had some revolving debt that was p+ but seeing that banks started raised rates two weeks ago again, I decided to lock in at 1y. Didn't seem like the rate drop was coming in the summer plus I don't see p dropping below the fixed rate within a year.

[donk.]

If you ain't increasing your tenants rent, you are giving them a yearly cheque

[Traum]

Originally Posted by donk.

If you ain't increasing your tenants rent, you are giving them a yearly cheque

In BC at least, if you already have a long term tenant, your hands are completely tied at that meager 2% rent increase a year, and you are basically subsidizing the tenant until the day you sell.

[Hakkaboy]

Originally Posted by donk.

This isn't the Trump thread

every thread nowadays is like a Trump thread

[mc.]

Hoping to get educated by some of the industry people that hang around this thread.

There is a potential development coming up right next to my current building in Burnaby and given the recent issue by the Gilmore development, I am concerned on the impact to our building given they will be closer.

Our biggest concern is how deep they will be digging and if that can cause any long term issues with flooding or ground movement. Our understanding is that the ground in this area isn't very stable and that is why all other developments in the area previously hadn't dug that deep and all had some above ground parkade levels.

Thanks in advance!

https://www.burnabynow.com/local-new...opment-7091335

https://skyscraperpage.com/forum/sho...d.php?t=254714

[JDMDreams]

Nothing you can really do but sell if it really bothers you, is polygon one of the ok developers? I thought they mainly do low-rise wood though.

[rb]

Not an expert but imo, not much you can do if it does cause issues but hope that your building's pumping systems are up to the job.

The developer I worked for built a phase 2 tower that was much larger and deeper than phase 1 in Richmond. The pump systems were trash from day 1 on phase 1 and I had to keep water waders in my car every time they failed or were not adequate enough to prevent flooding in the parkade

[donk.]

Originally Posted by Traum

In BC at least, if you already have a long term tenant, your hands are completely tied at that meager 2% rent increase a year, and you are basically subsidizing the tenant until the day you sell.

500$/year on a 2000$/mo low end condo rental, double/triple that for any house

Magnified by someone who has been living without a rent increase for 10 years, and that's a cheque for 5000$-15,000$ to your tenant every 10 years

On a monthly basis, sure 50-150$ is nothing, long term wise tho the amount is massive

Not to mention, the numbers above are for a single 2% increase, compound that 9 more times, and the numbers are astronomical, vs the whole "it's only 2%"

[bcedhk]

To echo the other 2 posts, there's not much you can do besides throwing money to seek for legal counsel on what instruments you have in case your concern becomes a reality.

Geotechnical and civil professional would have had to sign off on the development next door to ensure the site would not affect the adjacent properties during and after construction. Of course, not all professionals are equal, so your strata may want to hire an engineering consultant to determine if there are any concerns to be aware of when this development comes in.

[Hondaracer]

How do you go about raising rent if tenant is on month to month?

[GLOW]

consultant you retain would have to meticulously show/document assess how the adjacent site negatively affect your site, or at least show proof of accelerated deterioration, which may be combatted by the site's own PEngs

from there i think legal council... i think it's a good chunk of time/money/patience involved where the developer will no doubt ignore as much as possible and only respond when forced to (legally).

[donk.]

Originally Posted by Hondaracer

How do you go about raising rent if tenant is on month to month?

Give them a 3 month notice......

[Great68]

Originally Posted by Hondaracer

How do you go about raising rent if tenant is on month to month?

https://www2.gov.bc.ca/gov/content/h...-rent-increase

[Traum]

Originally Posted by donk.

Give them a 3 month notice......

Renting month-to-month does not exclude the tenant from the landlord's right to raise rent once every 12 months. You just issue your 3 month notice, and if they don't agree to it, they'd have to pack up and leave.

(And of course it'd be far more complicated than that IRL.)

[Eff-1]

Originally Posted by mc.

Hoping to get educated by some of the industry people that hang around this thread.

There is a potential development coming up right next to my current building in Burnaby and given the recent issue by the Gilmore development, I am concerned on the impact to our building given they will be closer.

Our biggest concern is how deep they will be digging and if that can cause any long term issues with flooding or ground movement. Our understanding is that the ground in this area isn't very stable and that is why all other developments in the area previously hadn't dug that deep and all had some above ground parkade levels.

Thanks in advance!

https://www.burnabynow.com/local-new...opment-7091335

https://skyscraperpage.com/forum/sho...d.php?t=254714

As an individual, there is very little you can do.

Anything related to the structure of your current building is a strata responsibility. So, it would be up to your strata council if they want to pursue this as a potential issue or not.

Something like that sounds like it will require a lot of time (probably years) and a small fortune for professional engineering reports, lawyers, etc.

Your concern sounds valid, and might be worth bringing up to your council and see what they think, but ultimately my best suggestion is that if it bothers you enough, then consider selling and moving somewhere else, just for the peace of mind.

[supafamous]

https://twitter.com/stevesaretsky/st...XryMfhgSGp1C0g

Very hawkish speech from BoC’s Beaudry today. Says Bank of Canada has been surprised by incoming data. Another rate hike in July seems very likely.

[supafamous]

https://www.burnabynow.com/highlight...nalyst-7116429

"Canadian housing affordability ‘likely past the point of no return’: RBC analyst"

Nice headline.

[Gerbs]

Anyone currently renting units out for $2,200 - 2,600 1BR or $3,200 - 3,500 2BR?

Curious how strong the market is because my friends are being evicted by their landlord. Part of me feels like they're going to have a hell of a time finding a unit that is even close to what they were getting. (2BR2BA, new lowrise in Van for $2,300) The last time I listed a 700+sqft unit for $2,100 during covid it had like 50+ tenants in a day on FB marketplace but majority pet owners or 2 - 3 people wanna live in it.

[supafamous]

Originally Posted by Gerbs

Anyone currently renting units out for $2,200 - 2,600 1BR or $3,200 - 3,500 2BR?

Curious how strong the market is because my friends are being evicted by their landlord. Part of me feels like they're going to have a hell of a time finding a unit that is even close to what they were getting. (2BR2BA, new lowrise in Van for $2,300) The last time I listed a 700+sqft unit for $2,100 during covid it had like 50+ tenants in a day on FB marketplace but majority pet owners or 2 - 3 people wanna live in it.

We just rented our 1 bedroom suite for $2,150 in Burnaby. It's about 525sf, brand new, ground floor, 12 min walk to Patterson Skytrain. Demand was ok (30-35 people interested) but the quality of the candidates was lower than I've experienced before - a lot of new to the country folks, a family of 4, etc. I'm used to having multiple great candidates to choose from but we only had one candidate that we really liked this time.

[Lamboda]

Originally Posted by Lamboda

With the way interest rates continue to rise (US), I have a contrary view that Canada may raise their rates one more time. Perhaps.

The majority of people did not believe BoC were going to raise rates again and yet they did. I made that quoted contrary view in February of this year and analysts from large banks, corporations, hedge funds, investment firms were all forecasting 4.5% was the limit which was clearly incorrect now.

At this point, another raise of .25% is extremely likely and quite frankly, needed. Are Canadians ready for 5%? I wonder how that's going to do for the economy. Probably Vancouver, nothing really as there are a tremendous amount of people waiting in the sidelines.

Here's the kicker, interest rates will continue to rise as long as 1) inflation is over 3%, and 2) there's extremely low levels of unemployment.

The sad part about this truth is that the only way for this inflation to reduce further (and resulting interest rate to stop rising) is for people to lose their jobs. Then cars. Then Stocks. Then homes.

US should raise rates by .25% minimum one more time. But all eyes will be on the data.

[Fafine]

Originally Posted by Gerbs

Anyone currently renting units out for $2,200 - 2,600 1BR or $3,200 - 3,500 2BR?

Curious how strong the market is because my friends are being evicted by their landlord. Part of me feels like they're going to have a hell of a time finding a unit that is even close to what they were getting. (2BR2BA, new lowrise in Van for $2,300) The last time I listed a 700+sqft unit for $2,100 during covid it had like 50+ tenants in a day on FB marketplace but majority pet owners or 2 - 3 people wanna live in it.

I think they get can get 1 br apt in Richmond for 2300
2 br apt goes for 2800 in Richmond

Vancouver, I see ads for 1 br between 2400-2700 at El Dorado on Kingsway

[Hondaracer]

[Special K]

Originally Posted by supafamous

We just rented our 1 bedroom suite for $2,150 in Burnaby. It's about 525sf, brand new, ground floor, 12 min walk to Patterson Skytrain. Demand was ok (30-35 people interested) but the quality of the candidates was lower than I've experienced before - a lot of new to the country folks, a family of 4, etc. I'm used to having multiple great candidates to choose from but we only had one candidate that we really liked this time.

You probably set a house suite record at $2,150!

How many people, private W/D, utilities?

[JDMDreams]

Yea, I really am not sure where they are going with this with only rate hikes, they will probably hand out more money in a few months again if it does go up more to help people survive, living cost to buy votes

Poor/ renter's will stay poor, it's gonna be even harder for them to get out of the hole, pay off debt, buy a place given stress test will go higher.

House owners should be ok, as housing demand is strong, new immigrants at least in lower mainland where we have no land. I doubt rent prices will fall, as all the increased cost of housing cost interest will just be passed onto the renter. Most should be able to continue payments unless there's a mass layoff event, but at that point gov will be forced to slash rates again like Coronas to stimulate the economy.

Like others have mentioned Canada has record debt, the last thing gov wants is a huge debt bubble crisis, as if that happens I think Canada is done, I doubt the gov has much ammo left to bail us out of that, no job = no tax income so gov will feel it too+ have to throw $ to bail things out.

I just don't see how there's gonna be a soft landing, I think they are done using that term, we're just waiting to see what crashes first. Small credit unions go belly up from paying out 5% gics like the state's?

Also I think this is a bad move because there's gonna be no big business investment like there really is any already, given our international stereo type of nimy for any type of development. Climate + native protesters.

Also, I doubt there will be much housing starts as others shown, this will continue to drive up prices.

So yea, the laid back do nothing, let's see what happens attitude that gov will finally catch up to us. Given how things are I just don't see a bright future for Canada.

[supafamous]

Originally Posted by Special K

You probably set a house suite record at $2,150!

How many people, private W/D, utilities?

2 people, it's all inclusive except for cable tv and has everything except for off street parking. It's intended to be where my in-laws eventually will live so everything is nice (a/c, 9 foot ceilings, solid wood cabinets, 44db dishwasher etc) - most people who saw the place said it was the nicest place they've seen. The comparables are by Metrotown/Patterson and most 1 bed condos go for $2500+ utilities.