Vancouver's Real Estate Market

[Hondaracer]

Nice. Good timing too

[Euro7r]

Originally Posted by 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.

Agreed with your comments about lifestyle choices. I personally know so many people that apparently "needs" to have their daily/weekly starbucks, $10 desserts twice a week, $10 lunch poke bowls and annual vacations. These same people are the ones complaining about Vancouver being expensive and can't save any money lol. Their reasoning is "gotta try out new things and experience life" and also everyone else is doing it....wtf.

In an ideal world, don't we all want to have everything. Realistically, sacrifices need to be made if one wants to live in Vancouver.

[FixedG]

Originally Posted by Infiniti

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

They make a lot more than that, at least at UBC. In fact, the salary list at https://www.ubyssey.ca/salaries/ (which is a few years old already) only lists salaries above $75k, and even then the person making just a bit more than that is the 4320th highest paid person - meaning 4320 people make more than that person.

Looking at the data, many of the non-tenured people are making above 6 figures.

Academia, at least for professors at school like UBC, is a high-paying professional career.

[Mr.HappySilp]

Originally Posted by Euro7r

Agreed with your comments about lifestyle choices. I personally know so many people that apparently "needs" to have their daily/weekly starbucks, $10 desserts twice a week, $10 lunch poke bowls and annual vacations. These same people are the ones complaining about Vancouver being expensive and can't save any money lol. Their reasoning is "gotta try out new things and experience life" and also everyone else is doing it....wtf.

In an ideal world, don't we all want to have everything. Realistically, sacrifices need to be made if one wants to live in Vancouver.

I just move out last week and already there are so much spending that I don't expect. Although I don't go starbucks often or eat out for lunch is spending a lot of just regular stuff.

[twitchyzero]

Originally Posted by Euro7r

daily/weekly starbucks, $10 desserts twice a week, $10 lunch poke bowls and annual vacations. These same people are the ones complaining about Vancouver being expensive and can't save any money lol. Their reasoning is "gotta try out new things and experience life" and also everyone else is doing it....wtf.

In an ideal world, don't we all want to have everything. Realistically, sacrifices need to be made if one wants to live in Vancouver.

hahaha I'm definitely in the other end of that argument

what good is a 600ft $1500 rental if you can't have a weekly drink or travel at least once a year?

you don't "need" it like you don't "need" to live in the city proper or adjacent suburbs. Metro Vancouver IS an expensive city with lower salaries even for professionals compared to other cities.

[Mr.HappySilp]

Originally Posted by twitchyzero

hahaha I'm definitely in the other end of that argument

what good is a 600ft $1500 rental if you can't have a weekly drink or travel at least once a year?

you don't "need" it like you don't "need" to live in the city proper or adjacent suburbs. Metro Vancouver IS an expensive city with lower salaries even for professionals compared to other cities.

Lot's of people don't travel at least once a year. I still don't get why people feel they need to travel that often...

[RiceIntegraRS]

I dont get why people havent realised that you cant have everything in life especially living in Vancouver. U need to make sacrifices. Ive lived in a 2bd condo in Vancouver for the past little while and i knew me and my wife needed the space. I knew in order for me to enjoy the finer things in life like going out all the time and taking a vacation everyyear i needed to make sacrifices in other areas. So i sacrificed location and now i bought a townhouse in Surrey. Becauase theres no way in hell i could ever afford to live in a Townhouse in Vancouver and do the things me and my wife wanna do. Maybe people are just too stupid to realise that.

[twitchyzero]

Originally Posted by Mr.HappySilp

Lot's of people don't travel at least once a year. I still don't get why people feel they need to travel that often...

you're right, i recall one survey few years ago found more people here do staycations with their holidays than to travel.

travelling is great for 2 main reasons

to clear my head...i like the fresh perspective of vancouver upon returning. I believe there's literature to show that productivity is better after a break abroad. Vitamin D is also nice when it's November to Feburary.

there's more to life than the northwest. Food, scenery, culture etc. That's not to say we are lacking in the first 2 department...it's just a good change sometimes.

it's all about moderation

i'm not saying quit your job and become a nomad or you gotta do the yacht tours in south of france

but putting majority of your income towards a shoebox in Richmond and eating ramen regularly doesn't work for me either

it also depends where you are in life. If I had a few kids running around, my priorities are gonna be different.

different strokes, different folks. Not trying to bash the way others live.

[Rallydrv]

Funny thing is...People complain not being able to afford to buy a place. Why people buy? To invest in future. Nest egg. But do any of these people who live on rent save as they are supposed to? Having a house, townhouse is no joke. U have to pay for hot water tank, higher electricity bills, maintenance bills, more issues. Even if these people were able to afford a place. They'd complain about how expensive it is to maintain it... and say it was a bad decision.

[m3thods]

Originally Posted by Rallydrv

Funny thing is...People complain not being able to afford to buy a place. Why people buy? To invest in future. Nest egg. But do any of these people who live on rent save as they are supposed to? Having a house, townhouse is no joke. U have to pay for hot water tank, higher electricity bills, maintenance bills, more issues. Even if these people were able to afford a place. They'd complain about how expensive it is to maintain it... and say it was a bad decision.

Add to reasons for buying the security of knowing you won't get kicked out of your home by a landlord for whatever reason. Not all purchases are for investment purposes, contrary to what you might think.

[G0rilla]

https://www.biv.com/article/2017/7/f...sale-flippers/

Funny thing is they just want their piece of the pie haha but it might help spook some presale flippers

[Tapioca]

In Vancouver, you have a council who bends over backwards to appease the lower income rental demographic. In Burnaby, you have a council who approves 50 story towers and calls the RCMP in to break up a demonstration by rental housing advocates.

Which approach does RS prefer?

[CivicBlues]

Originally Posted by Tapioca

In Vancouver, you have a council who bends over backwards to appease developers and pretends to pay lip service the lower income rental demographic. In Burnaby, you have a council who approves 50 story towers and calls the RCMP in to break up a demonstration by rental housing advocates.

Which approach does RS prefer?

FTFY

[Mr.HappySilp]

Originally Posted by Tapioca

In Vancouver, you have a council who bends over backwards to appease the lower income rental demographic. In Burnaby, you have a council who approves 50 story towers and calls the RCMP in to break up a demonstration by rental housing advocates.

Which approach does RS prefer?

Burnaby. The more you bend backwards the more people take. I am sorry but if you can't afford to rent where you live then you have to move. The owner of the building decided to sell the entire lot for redevelopments. As a renter you only rent the place is the owner choice to sell or keep renting at below market price.

[CivicBlues]

Originally Posted by twitchyzero

you're right, i recall one survey few years ago found more people here do staycations with their holidays than to travel.

travelling is great for 2 main reasons

to clear my head...i like the fresh perspective of vancouver upon returning. I believe there's literature to show that productivity is better after a break abroad. Vitamin D is also nice when it's November to Feburary.

there's more to life than the northwest. Food, scenery, culture etc. That's not to say we are lacking in the first 2 department...it's just a good change sometimes.

it's all about moderation

i'm not saying quit your job and become a nomad or you gotta do the yacht tours in south of france

but putting majority of your income towards a shoebox in Richmond and eating ramen regularly doesn't work for me either

it also depends where you are in life. If I had a few kids running around, my priorities are gonna be different.

different strokes, different folks. Not trying to bash the way others live.

I own a shoebox in Coal Harbour (adjacent)
Travel internationally twice a year (at least)
Eat Ramen (semi-regularly)

life is good

[Tapioca]

3 bedroom condos are rarity these days. Developers say there's no money in them because they take the longest to sell. They might be right when I see something like this that is priced well with good square footage, and in a good location in Metro Vancouver:

214 400 KLAHANIE DRIVE - Port Moody Apartment/Condo For Sale, 3 Bedrooms - The Today Team

This has been on the market for 19 days which is a long time considering the condo market in Metro as a whole.

[kr4l]

Originally Posted by Tapioca

3 bedroom condos are rarity these days. Developers say there's no money in them because they take the longest to sell. They might be right when I see something like this that is priced well with good square footage, and in a good location in Metro Vancouver:

214 400 KLAHANIE DRIVE - Port Moody Apartment/Condo For Sale, 3 Bedrooms - The Today Team

This has been on the market for 19 days which is a long time considering the condo market in Metro as a whole.

That's actually a great deal. Going to ask my brother about it since he lives in the area

[twitchyzero]

CBlues with the humble brag

if interest rates continue climbing, how long before it'll be reflected in RE pricing?

[Infiniti]

Burnaby approves Metrotown downtown plan after raucous council meeting - British Columbia - CBC News

[Tapioca]

Originally Posted by twitchyzero

CBlues with the humble brag

if interest rates continue climbing, how long before it'll be reflected in RE pricing?

The rate increases are being phased in gradually, so I think we are in for a long wait until these increases are reflected in pricing. We won't get a sudden shock to the market, like we did with the foreign buyers tax. In hindsight, the FBT was a wonderful buying opportunity, especially if you wanted to jump from strata to detached.

Based on some analysis by those in the Twittersphere, there are over 2000 completed units coming onto the market over the next few months. There is lots of supply coming on board between now and 2019. That will have more of an impact on pricing than interest rates, I think.

[hud 91gt]

Theoretically, any interest rate change will take 3 months to begin it's effect on the market (not withstanding fear mongering psychological changes). The effect on pricing would take much longer. If the effects are big enough where people are priced out then units will stay on the market longer, the market gets saturated then prices begin to change. Can take a very long time.

.25% change, is about .6% on mortgage rates now. I was approved at 2.78% for 5 year fixed yesterday, and the same bank I believe is jumping to 2.99% today. Quite the jump since it was 2.39% just 2 weeks ago at the same place. Banks are taking every advantage they can get.

On a 600k mortgage that is $180 a month change. Shouldn't change peoples buying habits that much, but technically that is what, a 50k change when leveraged?

[VR6GTI]

Originally Posted by kr4l

That's actually a great deal. Going to ask my brother about it since he lives in the area

Its not a great deal you have to factor in $400/month for strata, it looks like it backs onto the bushes which is where the new skytrain runs. If you have a young family its a great area to raise kids. That complex has no guest parking and goodluck finding parking anywhere in that area in the summer time.

[kr4l]

Originally Posted by VR6GTI

Its not a great deal you have to factor in $400/month for strata, it looks like it backs onto the bushes which is where the new skytrain runs. If you have a young family its a great area to raise kids. That complex has no guest parking and goodluck finding parking anywhere in that area in the summer time.

You are right. I talked to my brother and it is actually a wood frame low rise. Price per square foot is on par with Port Moody standards. The area is nice but directly beside the skytrain (good and bad i guess)

The $400 strata isn't THAT bad considering what you get but strata fees always only go up. I always get caught up comparing vancouver to all the surrounding areas

It seems only the new builds are flying off the shelves in all areas as a lot of older units don't move so quickly

[Liquid_o2]

Originally Posted by VR6GTI

Its not a great deal you have to factor in $400/month for strata, it looks like it backs onto the bushes which is where the new skytrain runs. If you have a young family its a great area to raise kids. That complex has no guest parking and goodluck finding parking anywhere in that area in the summer time.

You have to remember that strata fees are calculated per square foot. That unit is about 33 cents a square foot, which is fairly standard. It's 400 bucks a months because the unit is large. Go down to a 800 square foot condo and strata fees would be only $256 a month.

[Gerbs]

How do you guys calculate what you can afford when you're looking to purchase your first home? Assuming you have about enough for 20% - 35% down payment, do you guys follow the 3x income rule?