Vancouver's Real Estate Market

[haha13]

Originally Posted by PeanutButter

As far as I know, it's probably one of the more plausible flips.
Only 10% down
2028 completion
Hoping interest rates come down
1.5% assignment + $1,200 administration fee. (0% assignment fee if first 75 buyers)

3x their deposit seems a little much. I was giving it more of a 100% return on deposit. So they would make maybe $50k.

Worst case is they would have to rent it out and lose maybe $500 a month on it cash flow wise.

Right now you can buy a studio at Surrey Central for $380k, so they speculating real estate to go up by at least 10% in four years, which isn't out of this world.

I would say it's worth the risk for some, but I don't feel anyone has really ran the numbers or done a proper risk assessment of it.

I was about to do the same, but I rather buy stocks. The more I look into real estate as an investment in BC, the more it doesn't make sense. Stocks are easier to manage if you can control your emotions.

If you were to flip at completion, wouldn't all your gains be eaten by assignment fee, realtor seller + buyer fee, and capital gains tax?

[Gerbs]

Originally Posted by unit

the answer is just leverage. not everyone has 380k in cash to buy stocks with, and those who do can consider putting that 380k as a down payment and leveraging a 1m+ mortgage instead.

The two friends justify the 10% increase over 4 years because they don't have money nor income to buy the $380K resale property.

So they can't even close if they have to lol.

Originally Posted by haha13

If you were to flip at completion, wouldn't all your gains be eaten by assignment fee, realtor seller + buyer fee, and capital gains tax?

That's what I was thinking.

Cost - $450K + $7K GST/LTT = $457K > Appreciates to $500K. $500K Studio means my 1BR in Van will be $700-800K lol.

Gross Profit - $43K

Less:
- Assignment 1.5% = $9K
- Commission = $18K
- Notary - $2K buy/sell

Net income - $14K

Risked $45K for $14K is pretty good though, 7.8% return after fees. The downside is pretty big for the risk ontaken.

[Hondaracer]

Originally Posted by Manic!

Canadian's do that same shit in places like Florida, Mexico and Portugal.

All of those places have properties that are still “affordable” relative to local incomes.

You can’t buy a detached home in Kamloops for under 700k.

Many of them including Portugal and the US have many barriers to purchasing homes as a foreigner, whereas Canada let it ruin housing until hard data proved it needed to addressed.

Govt. at all leves was more than happy to let dirty money into the country until it became impossible to ignore. See: decades of money laundering through B.C. casinos.

[winson604]

Originally Posted by yameen

Applied late for the empty's home tax since life was so busy. Has anyone ever successfully disputed this bylaw notice of $250?

Also, if we declared it late, it doesn't mean that I have to pay the actual tax correct? My parents got a notice for $60k and there's no way they can pay that off. That tax penalty is only if we don't declare the empty's home tax right?

Don't forget the BC Speculation Tax letters just started hitting mail boxes so make sure to declare that one too.

[CivicBlues]

Originally Posted by PeanutButter

I feel like those are all Mainlanders or Taiwanese. In my circle, they have the stereotype of having big boy money. All of those college students with houses and nice cars are all Mainlanders.

Cantonese Chinese are among the cheapest mother f*ckers around. That being said, my parents and their friends are going out more these days. I think that has to do with our generation showing them that spending money is okay, since they have so much of it now. Even then, they don't like to do it too often.

That's exactly it, people here are conflating the Chinese uncle that came here from HK in 1989 and worked some shit job for decades and saved up as the same person as a millionaire from Harbin that just drops in once a year to look at his properties.

[Manic!]

Originally Posted by Hondaracer

All of those places have properties that are still “affordable” relative to local incomes.

You can’t buy a detached home in Kamloops for under 700k.

Many of them including Portugal and the US have many barriers to purchasing homes as a foreigner, whereas Canada let it ruin housing until hard data proved it needed to addressed.

Govt. at all leves was more than happy to let dirty money into the country until it became impossible to ignore. See: decades of money laundering through B.C. casinos.

For how long? Housing prices are up in places like Florida.

[mikemhg]

Originally Posted by CivicBlues

That's exactly it, people here are conflating the Chinese uncle that came here from HK in 1989 and worked some shit job for decades and saved up as the same person as a millionaire from Harbin that just drops in once a year to look at his properties.

The 1980s HK uncle are fine with me, they're my friend's parents.

The new mainlanders whose family owns a few factories in Shaoxing, funneling their money here to escape their government's hands can fuck right off completely.

People can and should have a legitimate hate for them.

[JDMDreams]

That's what your great Canadian leaders want, easy gravy train, why sell resources, educate, when you can just sucker rich people to come here and bring their money. That's as green as possible, don't have to sell any fossil fuels. Don't have to spend a dime and these suckers come, let's milk them dry.

Just look at the international students, all the schools are saying they are going broke, cuz the easy gravy train is gone. Why else would you charge x3 cost if you're providing the same education.

You want to milk these people dry + have your cake? Yet now complain that these people you milked brought too much money so your locals with less competitive education, less competitive economy due to tax rules and regulations can't survive due to systemic incompetence and short sightedness.

Look at the shitty arrive can, sure blame the new guy that you just suckered and milked dry for your problems.

Originally Posted by Hondaracer

If all you’re bringing to Canada is money, you’re a drain on society and part of the problem we face today.

I don’t think anyone is blaming a hard working business owner that employs people, is part of the community etc. even if you’re just an average working person, that never leaves Richmond, can’t speak English, isn’t engrained in the “Canadian lifestyle” it’s perfectly fine.

If all you’re doing here is coming here, purchasing property, and funneling money into Canada from elsewhere to buy property and prop up your lifestyle, yea, you’re 100% part of the problems we face today. And this is obviously a very real problem with the stories being brought to light of all these “home makers” getting millions and millions in mortgages.

All that shit obviously artificially inflates the value even more than general speculation, so if there ever was a time when all that hit the fan, the outcomes would be catastrophic for, again, “regular” people (of all ethnicities hehe) who would take a massive hit if their property values were less than their mortgage.

Which, I don’t think is likely but it’s this shell game we play in Canada with real estate

[CivicBlues]

Originally Posted by mikemhg

The 1980s HK uncle are fine with me, they're my friend's parents.

The new mainlanders whose family owns a few factories in Shaoxing, funneling their money here to escape their government's hands can fuck right off completely.

People can and should have a legitimate hate for them.

Problem is, most non-Asian people can't really tell the difference especially at face value. They both have FOB-accents if they speak English, similar age groups, stingy, they are both kinda same-sy fashion (no)sense. "It's like you go to a pre-sale and it's all black hairs these days" is the comment you see on forums and comment boards.

In 10-15 years our kids will all be saying "the Mainland Chinese are fine, they're my friends parents. Those fucking new mainland Indians can fuck right off tho." Guarantee it - it's already happening on less-PC Canadian subreddits. While the real robber-barons politicians and capitalists in charge run off with our children's cash with a big shit-grin on their face knowing they divided us so successfully yet again.

[JDMDreams]

Saw this on FB, not sure how accurate but I guess all the redditors can go to Edmonton and Winnipeg

[68style]

Need their definition of a home... looks like a 1 bedroom condo from this graphic lol.. no way $212k buys a detached house in Van

[whitev70r]

Victoria/Langford living ... looks decent. 3 Bed, 3 Bath, $1M. No idea about actual neighbourhood though.

https://www.facebook.com/marketplace...0788051102907/

[hud 91gt]

That’s like saying Surrey is Vancouver. Lol.

[whitev70r]

Do you mean Langford is full of gansta, Surrey?
Or, do you mean Langford is like 30 mins to Vancouver distance wise?
Or both?

[hud 91gt]

It’s gentrified, just like Surrey and everywhere else. I’d probably classify it as a Langley or Coquitlam. Lol. It’s a fine place now, just can’t classify it as Victoria.

[Manic!]

Alberta may be cheaper to buy but it's way more expensive to live. Car insurance is the highest in Canada. Hydro and natural gas is also way more. Plus the winter season is way longer. If you got kids most activities will be done indoors 6 plus months a year costing you money. The high for today in Edmonton was -7 degrees Vancouver was 5 degrees.








A ranking of the provinces based on their median annual auto insurance premiums, from highest to lowest, is as follows:

Alberta - $3,151
Nova Scotia - $2,491
Ontario - $2,299
New Brunswick - $2,187
Newfoundland - $2,162
BC - $1,775
PEI - $1,703
Manitoba - $1,373
Saskatchewan - $1,249

[JDMDreams]

I thought Alberta was cheaper for insurance what's why everyone registers their vi and super cars there. Less tax to buy + cheaper insurance unless something has since changed? Can you solar in Alberta since they get less rain and more sun than us?

[westopher]

Insurance isn't cheaper, they just don't pay PST on cars.

[Great68]

Originally Posted by whitev70r

Victoria/Langford living ... looks decent. 3 Bed, 3 Bath, $1M. No idea about actual neighbourhood though.

720 Bondi Close. Behind the Costco & Home Depot. It's part of a 5 lot strata.

The property is just shy of 1/4 acre, but half of that is basically cliff and useless...

[68style]

My best friend in Calgary runs an insurance agency, the insurance prices are mega high if you have no history or are a new driver or you get pretty much any tickets or accidents. But isn't that how it should be on the latter 2?

He pays very little for his own cars and there's a lot of discounts for seasonally driven vehicles as well. He has a couple of summer only cars and he can insure them in unique ways to here not as collectors but driven only x number days per year.

That said, tough times are ahead because he said claims are so high, especially for car thefts (?? highest per capita in Canada for Calgary) that companies are pulling out of Alberta entirely and the ones that aren't are having trouble making $$$. All the hail and constant windshield claims really don't help.

Electricity and water costs are super high there though, most of the families at the SuperBowl party on Sunday I was at said they average about $5-$600 a month for electricity on their home through the winter months. One family with 2 young kids said they got up to $700 on their townhouse last month.

As an aside regarding the chart Manic posted, how does MB pay so little for electricity ???

[underscore]

MB is 98% hydro apparently.

[Razor Ramon HG]

Seems like if you're going to move out of Vancouver, you might as well move to the boonies to save more money.

Manitoba is both low on insurance and electricity costs.

[Qmx323]

Plus side of MB is you're a 3~ hr flight to either Van or TO

[Traum]

Given how much debt MB is in right now, and how their new premier vows to address healthcare and a whole bunch of other issues, I can't see how costs and provincial taxes wouldn't be going up in MB though.

[Euro7r]

Landlords - When your rental agreement ends, do you typically just let it run month-month, or renew annually to ensure the tenant stays 12 months again for stability?

My suite is rented to a friend (married couple) of mines (which I initially had no intent to raise their rent as they just immigrated here, and got PR - trying to help someone settle down). But the issue that is pissing me off is, they invite out of town guests to stay over every 2 months for weekend/long weekend. Legally I can't do shit all about it (can't charge them, can't tell them guests ain't allowed to stay over since they didn't inhabit in my home). So my tenants guests are getting free accommodation at the expense of the landlord.

Obviously there ain't no such thing as free lunch for nobody on my books, so I plan to increase their rent when the 1-year agreement ends that's allowed to cover this. There seems to be pros/cons to fixed agreement versus. month-month, which I haven't quite figured out what's the best option.