Vancouver's Real Estate Market

[Tapioca]

I'm still seeing some value in the older townhouse market.

https://www.zolo.ca/port-moody-real-...avine-drive/61

This complex is in a neighbourhood full of high income, single family homes. Bus stop and daycare are right next to the complex. SkyTrain is a 5 minute bus ride away. This is a solid complex and I would take something like this any day over a poorly built high rise with leaking parkades and broken elevators.

Your resale value will better with ground oriented housing. No one with young kids wants to deal with their UppaBaby strollers in elevators.

[ForbiddenX]

Originally Posted by Gh0st

Pre-sales and condo game is fucked right now. Everyone is priced out of detached homes / townhomes so everyone is rushing to get into condo's/presales.

My condo in Vancouver purchased in 2015 for 480k (2 bdrm 900 sqft) 4 years old is now selling for 750k.

My presale in NW appreciated 100k in less than a year. Who would of thought. At the time of purchasing I would of been happy to assign it for 30k.

We also have 3 presale units at brentwood all 2 bedroom +100k minimum if we assigned it today.

So yeah it is pretty much a lottery and the market has changed immensely in the last year. This was us getting into the condo market late and we still made considerable gains. Lots of vacations and destinations were missed to scramble for those deposits.

These days the crowds you see at VIP showings are all ready to buy. No one is going to these showrooms for free drinks and food or to kill time. It's a tough market. Prices have soared exponentially and it doesn't help that rent has skyrocketed as well.

The bitter truth is you might have to accept the fact that you're priced out..for the next while at least.

Didn't think our condo would go any higher than what we paid but there was a unit that was exactly the same a couple floors up listed for $75K more than what we paid

Not sure if it sold for that much though, not on the market anymore

[dat_steve]

Originally Posted by MarkyMark

These days they make you feel like you won the lottery just to get selected for the opportunity to over pay for a pre-sale.

i remember getting these emails for upcoming pre-sale ops from the marketers and wondering if anyone actually falls for this shit. obviously they do!

[Hondaracer]

If you've got a good realtor they should be able to get you into any of the presales/VIP pretty easy.

Realtor we used to sell our condo told us if we wanted in on any of the city of Lougheed developments let her know and she was 99% sure we'd get a unit

[JDMStyo]

I get inside access as an presale investor and someone with RE license.

Sales process for larger developer goes in this order
1) Friends/Family i.e.. guy who owned land before, residents in low rise that got knocked over, commercial realtor, lawyer who wrote contract, etc.
2) Employee round - developer staff, family, friends, colleagues, people they like
3) VIP Realtors - realtors that can move 20-30 units. First pick.
4) Regular VIP Realtors - few days after that round (half past recession 3-4 days usually)
___
Project is sold 70% by this point.
5) Regular no represented buyers - line ups and unit forms that never get called.
6) Stragglers that wander into showroom.

*Clients pay same price whether using realtor or not. My thought is may as well, and get some discount that way.

But there are some developers like Marcon and Thind who are now doing hybrid combination of giving hard to sell units to realtors - and rewarding you with the cheap $300k 1BR that everyone buys.

For those who doesn't get what assignment or selling before completion on presales mean and why so many people made money last few years.
___

Assignments work like this:

$300,000 condo 1BR was bought last year. 20% paid in 12 months (10% signing, 5% in 6 mnth, another 5% in 12 months).

Paid $60,000.

Market goes up a year later this place is now worth $400,000. Still 2 years away from completion (built) but comparable units new are now $450,000 so it's a bargain right? Well...yes and no.

Seller would sell for a
1) LIFT of $100,000 (400k - 300k)
2) Deposit of original 20% = $60,000.

So you'll need $160,000 to take over this assignment.
Versus 20% down on a $450,000 comparable place ($90K). Substantially more cash.

[Harvey Specter]

I was lucky enough to get into the ARC development, scooped up 3 units which I'm holding as long term rentals. I also sold my YT studio apartment without parking for a record price of $510k which I purchased for $320k around two years ago. Last year I couldn't even get $425k.

[Infiniti]

City of Vancouver proposes new approach to affordable rental housing - NEWS 1130

[jing]

Checked out an open house in our building this weekend. Priced low for multi offers, typical of the Chinese agencies. Realtor remarked that an identical unit sold for 472k recently for a 1br. We paid 330k for ours last year. Burnaby Edmonds area.

[Traum]

Originally Posted by Infiniti

City of Vancouver proposes new approach to affordable rental housing - NEWS 1130

Rents would be directly connected to tenants’ incomes. Rents for the new, mandated affordable rental homes could range from:

$850-$1,000 for a studio,
$1250-$1500 for a one bedroom, and
$1700- $2100 for a two bedroom.

Am I just out to lunch? Or does that not seem too affordable?

[westopher]

Its not, but its better than where we are at.
Everyone is becoming conditioned to the prices now. Its just where its at unfortunately.

[twitchyzero]

those were market rental prices a year or so ago
probably considered to be a deal once the bldg goes up...esp because the location is primo (minutes away from downtown and richmond)

[Tapioca]

My wife was paying 1300 for a one bedroom in a concrete high-rise in the West End 5 years ago.

$1500 for a 600 square foot one bedroom in the Cambie Village tomorrow would be a good deal.

The City of Vancouver will never be affordable for those with lower incomes. What the City should be concerned with is housing that is affordable to those with household incomes in the 120-170K range - dual income professionals with one or two kids. Such groups will keep the schools utilized and the tax base high.

[ImportPsycho]

Originally Posted by Traum

Am I just out to lunch? Or does that not seem too affordable?

or how about

people with a household income of $30,000 to $80,000

somebody making $80k need government assistants for rent?

[Armind]

Of course it's gonna be affordable, we're gonna get $400 annual rent rebate.

[Euro7r]

I'm quite tired of hearing how they want to make "affordable" housing in Vancouver. It will never go in the same sentence, affordable+Vancouver. Not sure how is paying $1500 for a one bedroom affordable. If someone is making $30K and paying $1500 rent, that's like almost their entire month of pay...

[Hondaracer]

Well it sounds moreso they cant afford to live in Vancouver, not just that rent is unaffordable.

30K is like... min wage mcdonalds burger flipper

There are many trade offs people make to create an affordable lifestyle, this is a big reason why rents and vacancies are so high/low imo.

Our tenants are both academics and probably dont make a crazy amount of money. However, neither of them have vehicles. They moved to our suite to be in a more centrally located area to spend less time and money on transit. Everything is within walking distance and bus routes serve the areas they go to almost directly.

People cry about X amount for rent while they are paying $800 a month for a C230 and insurance. The smart people who are prioritizing their needs are never the ones complaining about the cost of rent because they've made the changes financially and mentally to live within their means and have the disposable income to live life.

Someone making chump change wages with a vehicle lease and credit card debt shouldn't be looking for a 2BR vancouver condo, they should be in a basement suite in cloverdale if they were being realistic.

[CivicBlues]

^ 30K a year is $15/hr at 40 hours a week, do you know many McDonald's Burger flippers earning that much?

$1500 for a one bedroom is about par for the course 5 years ago. Whether turning the clock back 5 years is "affordable" is up to anyone's interpretation.

[Infiniti]

Originally Posted by Hondaracer

Our tenants are both academics and probably dont make a crazy amount of money.

Non-tenured professors still make in the neighbourhood of 75k/yr..

[twitchyzero]

that's not much if you think about all the education and research they go through

[yray]

Originally Posted by Hondaracer

People cry about X amount for rent while they are paying $800 a month for a C230 and insurance.

$600 for a C230, are they retarded?

[westopher]

Originally Posted by yray

$600 for a C230, are they retarded?

Y u no read whole sentence.

[Hondaracer]

Originally Posted by CivicBlues

^ 30K a year is $15/hr at 40 hours a week, do you know many McDonald's Burger flippers earning that much?

$1500 for a one bedroom is about par for the course 5 years ago. Whether turning the clock back 5 years is "affordable" is up to anyone's interpretation.

arent all the burger flippers gonna be making that shortly? lol Re: Min Wage thread?

[CivicBlues]

maybe so but if they did they sure as hell won't be clocking in 40 hours/week anymore

[Hondaracer]

Did you ever end up putting in an offer on the place u were living in CB? thought u had mentioned some interest in buying the place u were renting or as an investment a while back?

[CivicBlues]

Yes! We bought it through a private sale last fall, I think our landlord got spooked by the foreign buyers tax.