Vancouver's Real Estate Market

[Liquid_o2]

Originally Posted by originalhypa

^

I know you're just trolling, but Langley has always been a nice place to live. It had a small town feel for so many years, until the developments came around. It's a bittersweet scenario, because the same development that ruined our little town are the same developments that made me wealthy.

The problems I find now are folks coming from Vancouver/Burnaby with their shitty urban elitist attitudes. Folks forced to come to the suburbs, while looking down upon those who live here already. To many, life is viewed as a competition and anyone who is in their way will pay. It's as simple as dropping my kids off at school, and seeing leased Audi housewives stopping in the middle of the road to let their kids out like they own the place. They don't work, but in their minds they are superior. I laugh when my wife has someone over for coffee and they see my house. Suddenly they're treating me differently, like I can help their social status or some shit.

The other issue is the Chinese and Korean immigrants who refuse to work within our culture. Again using the school as an example, there are two different groups. The multi generational Canadians, who come from all over the world and have no issues playing together. Then there are the asian kids who speak their native tongue and live their lives in a little asian bubble. Their moms are living in Canada making no income, while dad lives and works in Korea or China and sends over a respectable allowance. It's a terrible way to live, but it's incredibly common. And why should these folks immerse themselves in Canadian culture, if they're here for a two year education vacation?

It's all fucked up.

As an urban planner, Langley is one of the last places I would want to be from a livability context. I always see Langley as the most "Americanized" sprawl cities in Metro Vancouver. It's just housing subdivision after subdivision, random ALR/rural areas that bisect the subdivisions, strip malls and shopping plazas as far the eye can see, and a crappy old downtown that has been abandoned for big box stores. BLAH. I hate what it has become.

But it was different 20 years ago. A lot more acreages and smaller town living. People who didn't want a 35 foot lot in Vancouver could get a couple acres in Langley. Offered a different lifestyle choice.

[iPee]

Agree that living downtown is pretty overrated. I was pretty excited when I moved down here in 2014, now it just feels like living in any other place once you get used to it. It was fun at first when friends came down all the time to hang out party. Now that we go out less living dt feels more of just a convenience for work. Wake up walk 5 mins done. The thing I miss the most living at home is have the garage space.

[Ludepower]

Location location location

DT will always hold its value. If it goes up everything else follows it. If it drops...the surrounding areas falls first.

975ft 2 bedroom on 2nd avenue on the border of Olympic village took a day to sell for 1.4 million.

Presale condo market is just insane right now.

[hud 91gt]

Stats on the province.

Sales down.
Average $ value down from same time 2015 but demand still strong on some parts of the market.

= foreign buyers not buying mansions.

Locals continuing to purchase low priced properties within our (Canadian) reach.

HuD's expectations. Substantial decrease of high valued properties, followed by increased listings of higher priced condos/townhouses as these same people wanting to jump on drop of single family homes. The domino effect continues...


Will re evaluate post after beers wear off.

[MrPhreak]

Originally Posted by iPee

Agree that living downtown is pretty overrated. I was pretty excited when I moved down here in 2014, now it just feels like living in any other place once you get used to it. It was fun at first when friends came down all the time to hang out party. Now that we go out less living dt feels more of just a convenience for work. Wake up walk 5 mins done. The thing I miss the most living at home is have the garage space.

I've done various combinations of DT and burbs. I moved out to a nice house in the burbs after that. Nice big lot with lots of privacy, and a decent commute to DT. Best part was no shared walls, so no more living with the sounds of inconsiderate neighbours. However between the commuting and maintenance needed around the house, I didn't have time for anything but working and chores. It just got tedious over the years, and I found myself yearning for a change.

[Hondaracer]

Looks like we are going to be selling our Burnaby condo and moving into our house in east Van once we build a suite. After much consideration seems to make the most sense..

Anyone interested in a unit by Lougheed mall? Great 30 year old concrete building. Awesome strata, management, etc.

900 sq ft 2 bed 2 bath corner unit with a view, nicely renovated, none of the new development at lougheed will obstruct the view or even be near this building.

I'm wondering if I can sell without a realtor hmm..

[jasonturbo]

Originally Posted by Hondaracer

I'm wondering if I can sell without a realtor hmm..

Are you crazy? Haven't you seen the commercials? Without a realtor to help you manage the single biggest transaction of your life terrible things will happen!

Sell without a realtor?... I swear, some peoples kids.

Spoiler!

[Timpo]

Vancouver mayor wants cheats caught, CRA to look into real estate speculators
by NEWS 1130 STAFF AND THE CANADIAN PRESS
Posted Sep 13, 2016 8:45 am PDT Last Updated Sep 13, 2016 at 11:07 am PDT

Vancouver mayor wants cheats caught, CRA to look into real estate speculators - NEWS 1130


(Sonia Aslam, NEWS 1130 Photo)

VANCOUVER (NEWS 1130) – The Federal Revenue Minister Diane Lebouthillier has asked the Canada Revenue Agency to look into the actions of real estate speculators in BC following an investigation by a national newspaper.

Stating “make sure that the cheats are caught,” Vancouver Mayor Gregor Robertson says he’s heard rumblings for some time that the CRA has not been properly equipped to deal with real estate tax evaders. “I think it’s unfortunate that those laws were not being enforced for some years. I heard that through people in the industry. I heard that the CRA did not have the resources to actually enforce those laws of tax evasion.

When asked directly if he felt the CRA has a shortage of auditors, Robertson says he will count on the feds to make that call. “I am very hopeful that the CRA will actually enforce the laws of Canada that ensure tax evasion is penalized and it’s obviously been a concern in the real estate industry for some time.”

The mayor says he made his case on this issue with Federal Finance Minister Bill Morneau back in June, expressing concerns speculators weren’t paying appropriate taxes or capital gains levies.

Over the weekend, the Globe and Mail reported some foreign investors allegedly profited in buying homes in BC while evading taxes. That report prompted the NDP’s housing critic to take direct aim at the premier, accusing Christy Clark and her government of turning a blind eye to the problem in the region’s white-hot real estate market.

The federal minister says she is concerned by the allegations and has asked the CRA to look into them. Her request follows comments by BC’s Finance Minister Mike de Jong, who said the CRA must be diligent in enforcing the law in order to maintain the confidence of taxpayers.

De Jong says the 15 per cent tax on foreign homebuyers introduced on August 2nd, was intended to address some of the issues raised in the Globe and Mail story, but did not specify whether the government would be taking any new or different actions.

Meantime, the BC Real Estate Association says 8,945 residential unit sales were recorded by the Multiple Listing Service in August, that’s up 1.5 per cent from the same month last year. Total sales came in at $5.1 billion in August, down 6.7 per cent compared to the previous year. The agency says the average residential price in the province was $569,393, a decline of 8.1 per cent compared to the same month last year.

“Strong housing demand across most regions of the province offset slowing home sales in Vancouver last month,” says BCREA Chief Economist Cameron Muir. “The newly introduced 15 per cent foreign buyer tax combined with the three per cent property transfer tax on homes over $2 million brought in earlier this year, slowed demand at the top end of the market in Vancouver last month.”

“The decline in the average home price was due to a change in the composition and location of homes sold in the province,” added Muir. “Fewer sales of high priced detached homes relative to all other homes sales in Vancouver as well as fewer Vancouver home sales relative to the rest of the province has caused the average price statistic to decline.”

Year-to-date, BC residential sales dollar volume increased 39.1 per cent to $61.6 billion, when compared with the same period in 2015. Residential unit sales climbed 22.1 per cent to 86,206 units, while the average residential price was up 13.9 per cent to $714.400.

[Timpo]

Canada Revenue Agency probes tax loopholes in real estate speculation
Tax agency has stepped up its monitoring of B.C. and Ontario housing markets
CBC News Posted: Sep 13, 2016 10:37 AM ET Last Updated: Sep 13, 2016 4:31 PM ET

Canada Revenue Agency probes tax loopholes in real estate speculation - Business - CBC News


The Canada Revenue Agency has conducted 2,500 audits in the past year and a half related to tax issues associated with real estate transactions in B.C. and Ontario. (Sean Kilpatrick/Canadian Press)

The Canada Revenue Agency is looking deeper into tax evasion in some of the country's hottest housing markets after reports suggesting many speculators are abusing the system and not paying enough tax on their gains.

The move comes after a Globe and Mail report last week on a Vancouver property speculator who paid virtually no tax on gains from millions of dollars worth of home flips during the same calendar year.

"Like all Canadians, I am very concerned over allegations that some wealthy Canadians are not paying their fair share of taxes," Diane Lebouthillier, minister of national revenue, said in a statement. "That is unacceptable and I've since asked Canada Revenue Agency officials to look into the specifics of the case."

Frothy market

Foreign money in Canada's housing market has been a hot topic of late, as policymakers seek to get rid of some of the excess speculation without starting a panic. The province recently implemented a 15 per cent tax on foreign buyers in the Greater Vancouver Area, and the issue of the capital gains exemption on a primary residence has also drawn scrutiny from the CRA and other agencies.

Lebouthillier said that between April of last year and June 2016, the CRA had conducted 2,500 audits related to real estate in British Columbia and Ontario, and levied some $11.6 million in penalties to tax filers who were subsequently found to have demonstrated "gross negligence in failing to report their tax obligations correctly."

"Those trying to avoid paying their tax obligations now face an increasing likelihood of getting caught," she said. "Canadians expect and deserve a fair tax system and that is what we are committed to delivering."

Prime Minister Justin Trudeau addressed the topic of tax leakage in the housing market later on Tuesday afternoon, when asked by a journalist at a press conference for his thoughts.

"One of the issues that we highlighted recently is the need for continued enforcement of the tax code and making sure that we're cracking down on people who are avoiding paying their fair share of taxes," he said, adding that the government earmarked more than $400 million in the last budget to beef up the CRA's ability to "make sure that there is better enforcement [so that] everyone pays their fair share of taxes."

[MarkyMark]

Originally Posted by Hondaracer

Looks like we are going to be selling our Burnaby condo and moving into our house in east Van once we build a suite. After much consideration seems to make the most sense..

Anyone interested in a unit by Lougheed mall? Great 30 year old concrete building. Awesome strata, management, etc.

900 sq ft 2 bed 2 bath corner unit with a view, nicely renovated, none of the new development at lougheed will obstruct the view or even be near this building.

I'm wondering if I can sell without a realtor hmm..

Are you doing this because you don't think you'll get what you want for the house if you sell, or you'd just rather live in a house?

[Hondaracer]

financially it makes too much sense not to..

house was built in 1912 and has it's warts, but just on the basis of owning land VS being in a strata property i think the growth potential down the road is much greater (obviously)

and imo, while the property may dip a little in the next while, in 5-10 years i'm pretty confident the value will be higher, if not substantially, than it is now.

house is in the Hastings Sunrise neighborhood, growing up in Surrey i never really knew anything about this area, but from being exposed to it over the last 5-6 years, really come around to it and seems like a really great up and coming area

[UFO]

Originally Posted by Jmac

Median household income in Canada is just shy if $79k/year (2014 Stats Canada) and median individual income in Canada is $33k/year (2014 Stats Canada).

Im aware of what the stats show, and those are fairly skewed IMO. People working minimum wage jobs at McDonald's and Walmart should not be in consideration to buy property, even before prices took off

Lets look at it this way. I would say that being a teacher, nurse, office worker, construction/trades, these are all average work positions. Not entry level, you'd need some level of education and/or experience to be average in this sense. These positions can pay a fairly average 50-60k if not more depending on your skills and experience. Since when did working in these areas classify anyone as above average or even rich (by way of the official median income stats)?

[IGTBAR]

.

[westopher]

Originally Posted by UFO

Im aware of what the stats show, and those are fairly skewed IMO. People working minimum wage jobs at McDonald's and Walmart should not be in consideration to buy property, even before prices took off

Lets look at it this way. I would say that being a teacher, nurse, office worker, construction/trades, these are all average work positions. Not entry level, you'd need some level of education and/or experience to be average in this sense. These positions can pay a fairly average 50-60k if not more depending on your skills and experience. Since when did working in these areas classify anyone as above average or even rich (by way of the official median income stats)?

Do you get what "average" means?
You can't just remove a demographic to support your argument.

[Hakkaboy]

Originally Posted by westopher

Do you get what "average" means?
You can't just remove a demographic to support your argument.

only problem is that these average stats also include rich people declaring the minimum or no income amount so that they can qualify for social assistance and not pay taxes, even though they are earning quite a bit of income overseas and not declaring it

i.e. Look at Richmond's median income. $23K per adult.

[westopher]

Stats are going to be skewed on both sides. The point I'm trying to make is just because someone doesn't find a profession impressive, doesn't mean it's average.
Not to mention those people you mentioned aren't making a Canadian income anyways.

[iPee]

Originally Posted by Hondaracer

financially it makes too much sense not to..

house was built in 1912 and has it's warts, but just on the basis of owning land VS being in a strata property i think the growth potential down the road is much greater (obviously)

and imo, while the property may dip a little in the next while, in 5-10 years i'm pretty confident the value will be higher, if not substantially, than it is now.

house is in the Hastings Sunrise neighborhood, growing up in Surrey i never really knew anything about this area, but from being exposed to it over the last 5-6 years, really come around to it and seems like a really great up and coming area

Great area to be in, that's where I grew up. Will be moving out of DT and back to my mom's place in a couple months. Pretty excited to go back.

[UFO]

Originally Posted by westopher

You can't just remove a demographic to support your argument.

I absolutely can, in the context of home ownership. 16 year olds working minimum wage jobs and fresh grads looking for entry level job earning low wages, they are not in the home buying equation (in most cases) so why should we include that demographic in real world situations?

Originally Posted by westopher

Stats are going to be skewed on both sides. The point I'm trying to make is just because someone doesn't find a profession impressive, doesn't mean it's average.

Just because an average professional does impressive work, does not make that profession itself impressive IMO. I'm curious how you would classify the typical 'average' blue collar employee, or teacher/nurse/bus driver, the bulk of the typical day to day jobs that an average person would work.

If an average is so skewed on either side, its overall relevance and use is also quite questionable.

[westopher]

Again, I don't think you get what "average" means.
Just because there are people with unaccounted foriegn income does not mean there is any correlation to Canadian income averages. Their Canadian incomes are still zero if the money is coming from somewhere else.
Average jobs in Canada are unskilled labour, bank tellers, commission based retail, etc.
The average person doesn't have a university degree or the job that comes with it. That's supported by numbers, and your opinions don't change that.

[winson604]

Originally Posted by Hondaracer

financially it makes too much sense not to..

house was built in 1912 and has it's warts, but just on the basis of owning land VS being in a strata property i think the growth potential down the road is much greater (obviously)

and imo, while the property may dip a little in the next while, in 5-10 years i'm pretty confident the value will be higher, if not substantially, than it is now.

house is in the Hastings Sunrise neighborhood, growing up in Surrey i never really knew anything about this area, but from being exposed to it over the last 5-6 years, really come around to it and seems like a really great up and coming area

Glad you like the hood, growing up in South Van Langara College area I didn't know much about this hood other than PNE. Having been living here for 10 years I love it.

[Ch28]

Nine students own $57M worth of Vancouver property - NEWS 1130

VANCOUVER (NEWS 1130) – NDP housing critic David Eby is sharing documents that show nine students have bought $57-million worth of property on Vancouver’s west side.

In one case, one of those properties was flipped for a profit of over a million dollars.

Vancouver to implement empty home tax by next year - NEWS 1130

VANCOUVER (NEWS 1130) – If you own an investment property in the City of Vancouver, you’ll soon have to prove you’re actually living in it regularly or pay up. The City of Vancouver is explaining how it plans to implement a vacancy tax as a way to increase the supply of rental housing in the tight market.

The mayor says the proposed tax will target the city’s 10,800 “empty homes.” He adds staff will report back to City Council by November to determine how much the levy will be. “We expect that many people will choose to rent their empty home, rather than pay an empty home tax. So, that will return some thousands of units to the rental market. Some people, who can afford it, will not want to rent out their property, and therefore, they are going to make a generous contribution to affordable housing,” explains Mayor Gregor Robertson.

The idea behind the tax is to force the owners of those vacant homes to either sell or rent, in an attempt to increase the number of available units in a market where the rental vacancy rate sits at 0.6 per cent.

“Vancouver’s dangerously low vacancy rate is putting renters in crisis. Our proposed empty homes tax is first and foremost about bringing rental homes back into the market,” adds Robertson. “We need to ensure the best use of all of our housing. Empty and underutilized investment properties are holding back badly needed homes for thousands of renters who are struggling to find a secure and accessible place to live in a tight rental market.”

He adds when collected, the tax on just five per cent of homes could bring in about $2 million in annual revenue that will be re-invested in affordable housing.

“In principal residences that are occupied by the owner, or by a tenant or a family member, will not be subject to the tax,” says the city’s General Manager of Community Services Kathleen Llewellyn-Thomas.

The city will essentially use the honour system to determine whether properties are vacant or not. Homeowners will have to declare their principle residences — if they can’t, or fail an audit, the tax will be applied.

We have heard concerns from people like snowbirds or those who work abroad about being hit with the levy. The city says there will be exemptions but they’ll be determined later through public consultation.

The tax proposal goes before council next week.

How to separate speculators from those caught in development limbo or with other legitimate reasons not to be renting, is a tough question to answer says Economist Tom Davidoff with UBC’s Sauder School of Business. “If you define vacancy narrowly enough, it’s very easy and cheap for somebody to fix the property so they don’t really do anything different, but they avoid the tax.”

Things like running electricity and cutting the lawn to make it seem as though a home is actually being lived in. Davidoff adds the key for the city is to define “vacant” in such a way that it forces someone to live in the home.

[NotRevSeen]

Live in Kits my rents been steadily increasing and it's putting serious financial pressure on my wallet. I love it here and I would seriously move to Toronto before considering moving out to the stix like Surrey, Langley, Abby, Chilli. Let's be completely honest here, the only people who choose to live in the suburbs are those with families who cannot afford homes in Vancouver proper or country folks who like the quieter more peaceful country atmosphere. I know I sound like an elitist city dweller, but there's a reason why Vancouver is such an expensive place to buy/rent. If you want cheap rent the suburbs is the way to go, but sorry that's not for me. If it comes to it I'll take public transportation and ditch my car to pay rent and to live in Vancouver than moving out of the city.

[Ch28]

Originally Posted by NotRevSeen

Live in Kits my rents been steadily increasing and it's putting serious financial pressure on my wallet. I love it here and I would seriously move to Toronto before considering moving out to the stix like Surrey, Langley, Abby, Chilli. Let's be completely honest here, the only people who choose to live in the suburbs are those with families who cannot afford homes in Vancouver proper or country folks who like the quieter more peaceful country atmosphere. I know I sound like an elitist city dweller, but there's a reason why Vancouver is such an expensive place to buy/rent. If you want cheap rent the suburbs is the way to go, but sorry that's not for me. If it comes to it I'll take public transportation and ditch my car to pay rent and to live in Vancouver than moving out of the city.

What do you do for a living? Do you have a significant other or a young family? Those are two of the biggest factors that I think most people face nowadays. It's easy for everyone to say they'll just pick up and move, but the fact of the matter is that it's not financially feasible for most. You're basically starting a new life in the new city you're moving to, and if you don't have a proper well paying job lined up then you're going to be SOL. In fact, you'll probably be worse off because you won't have the friend and family support that you'd have back home.

[Hondaracer]

Literally just read an article in the 24 saying 1br downtown are going for $2600 a month? Wtf

[MrPhreak]

Originally Posted by Hondaracer

financially it makes too much sense not to..

In the Vancouver market I think it makes absolute sense to sell without a realtor. You have a huge market pool, and it is a sellers market. There is basically no work for realtors aside from hiring a photo guy and slapping a description together for MLS.

There are a few problems you run into though.

The first is if you go with going the route of a discounted service (Comfree, 1% realty, 2% realty... etc), people just go "Oh, well you are not paying realtors fees... so give me the commission off your price and then we can start negotiations". A large number of people you run into that surf those kind of listings are going to be like that.

The other problem is that realtors passively look out for themselves... so even if you are offering a full buyers commission, they may still direct their clients to other properties and avoid yours even if it would be a perfect fit