Vancouver's Real Estate Market

[4444]

Originally Posted by Mr.HappySilp

LOL so true. Another trap I see is so many people goes into the show room and bought an unit happily expecting their unit to look the same.

LOL so many little tricks happen in the show room that potential buyers have no idea.

-In show rooms they usually have no ceiling or VERY VERY HIGH ceiling so it looks more comfy and bigger to the visual eyes.

-In place where there should be a wall or windows (IE near balcony) THEY DON'T PUT A WALL THERE instead they either extend the floor and then put some fake pictures to show you a fake view (they simply put tape to show you where the walls would be). That way it makes you feel your unit is actually bigger because there are no walls).

- Show rooms is always always very bright with lot's of extra lighting so it gives you a fake idea thinking your unit will be this bright as well and as we know the brighter it is the bigger the place feels like

-They use custom funtirune. All the couchs, tables, beds, coffee tables they use in the show room most of them is custom made to be a bit smaller than what you would find normally (especially if the show room is a one bedroom unit or studio). This gives you a feeling that even with all the funturine the place still seems very big and cozy.

-Show rooms always have the best upgrades to make it look good.

-Show rooms is always neat and tidy. Let's face it how many of us will actually keep our house as clean as those show rooms. Notice there isn't any jackets, pants laying around. Or 17 cups laying around the kitchen or have pots and pans everywhere? Notice int he bathroom in the show room they don't have towels, toothbrush, hair gel, hair dyer?

bait and switch - what other industry can someone sign up for 500K+ of debt and effectively sell you a product you won't actually get.

i would never buy new, pre construction before i see the actual product i move into to - not even a 'similar' one, there isn't that much demand and that little supply that you can't wait.

[Carl Johnson]

People have been conditioned to think just because Vancouver real estate have gone up the last 10 years it will probably go up the next 10 years as well. Recency bias will be their fatal mistake.

[GS8]

Originally Posted by 4444

bait and switch - what other industry can someone sign up for 500K+ of debt and effectively sell you a product you won't actually get.

i would never buy new, pre construction before i see the actual product i move into to - not even a 'similar' one, there isn't that much demand and that little supply that you can't wait.

Some people are so desperate to enter the market that they'll buy one (or two) units and think they can easily rent them out and make some money.

Then reality sets in: The unit barely resembles the showroom, there's more outdoor noise than they thought, the walls are paper thin, the materials are cheap and in the end, they can't find someone who wants to rent the unit.

This happened with a few people I know. I told them to be careful and they wouldn't listen. Now they have 2 mortgages to pay off.

It just sickens me when you see the mass development of housing going up. And we wonder why there's more bears in our yards?

[Traum]

^^ One unit I can understand. But picking up 2 units at the same time?? How did they even get approved for 2 mortgages simultaneously?

[4444]

People are blind when it comes to real estate.

A good rule of thumb I use is 15x annual rent revenue, if it's priced way above that, no touching, if it's at or below, you would be able to buy and successfully cash flow from it.

Canada is way overpriced (we already knew that), Europe in most big cities are slightly overpriced (cheap money effect), US in markets outside of SF, NY, LA, is well priced / about rightly priced

If Canadian real estate never goes down, it actually doesn't concern me at all, I don't live in Canada anymore (another sign of the times, well educated/experienced ppl moving away for way better opportunities and money) but if this situation did, somehow, pan out, I'd just rent - I still don't see what the general public's problem is with this plan... And the funny thing is, I save/invest way more of my money (absolute and relative) than the average Canadian, so really their opinion means nothing to me

[4444]

Originally Posted by Traum

^^ One unit I can understand. But picking up 2 units at the same time?? How did they even get approved for 2 mortgages simultaneously?

Beg
Borrow
Steal


The new reality of idiots in the western world

[Carl Johnson]

Pace of housing starts slowed in January compared with December, CMHC says - Yahoo Finance Canada

not a good start to the year if you are a housing bull as leading indicators is pointing down. the overhang in supply is gonna takes years to work off. prices will mostly likely start to soften this year.

[Mr.HappySilp]

Not trying to shit on fellow RS but this thread have started in 2012 and now it is 2104 and there still haven't been that bubble burst. I mean sure price might be stable or decline but I don't see a burst anytime soon.

Interest rate seems to be down and I think it still stay down till next year. I think if people wants to buy a place to live in for the next 15+years I don't see the reason not to go into the market. Real estate is meant to be a long long investment (10+years). With renting you are always renting, but if you purchase after the mortgage is paid off, all you really need to pay is starta fee (assuming is an apartment, town home) and property tax.

[Carl Johnson]

Originally Posted by Mr.HappySilp

Not trying to shit on fellow RS but this thread have started in 2012 and now it is 2104 and there still haven't been that bubble burst. I mean sure price might be stable or decline but I don't see a burst anytime soon.

Interest rate seems to be down and I think it still stay down till next year. I think if people wants to buy a place to live in for the next 15+years I don't see the reason not to go into the market. Real estate is meant to be a long long investment (10+years). With renting you are always renting, but if you purchase after the mortgage is paid off, all you really need to pay is starta fee (assuming is an apartment, town home) and property tax.

the timing to buy the largest purchase you'll ever make is very important even if you are going to live in it for 10+ years. between low rates or low prices, i go for lower prices every time. the difference between having a mortgage and renting is that one you are paying the bank where the other you are paying the landlord. except with mortgage you are locked down but with rent you can pack up and move anywhere you want.

[Ludepower]

This thread can go on forever fearing the bubble burst.
Broken violin. You can either afford it or you cant.

[Carl Johnson]

Originally Posted by Ludepower

This thread can go on forever fearing the bubble burst.
Broken violin. You can either afford it or you cant.

your complacency further recinforeces the state of current RE situation.

[GLOW]

Originally Posted by Ludepower

You can either afford it or you cant.

this pic will sum it up for vancouver

[hirevtuner]

take the news of the housing bubble or hot housing market with a grain of salt, yes we saw what happened in the US during the recession but its not likely to happen in GVRD because foreign money is coming in and paying in full if not leveraging very little money

but the golden question is it time to buy or not, answer is when you are ready to you will

unlike a car (which is a depreciating liability) you can choose to mortgage or rent a place, either you want to rent all your life with no headaches of home ownership or have a mortgage become a home owner with a possibility of turning the property into an asset (if done right) but there is no right answer cuz everyones situation is different

[SumAznGuy]

Originally Posted by Mr.HappySilp

Not trying to shit on fellow RS but this thread have started in 2012 and now it is 2014 and there still haven't been that bubble burst.

To be fair, this thread was started in 2012, but I recall there was another thread that was started pre-2010 Olympics and in that thread the same people have been talking about the same doom and gloom in the RE market.

Now, if only i could find that thread.

Found a bunch of threads with a search for "bubble" over in the financial section of VLS.

[quasi]

Originally Posted by SumAznGuy

To be fair, this thread was started in 2012, but I recall there was another thread that was started pre-2010 Olympics and in that thread the same people have been talking about the same doom and gloom in the RE market.

Now, if only i could find that thread.

Here you go, 1.8tradoman swore up and down and argued till he was blue in the face that you would see 30-40% drops in the next 2 years and anyone who looking to buy at that time is an idiot, this was back in 2008.

http://www.revscene.net/forums/52840...-downtown.html

[m!chael]

Originally Posted by quasi

Here you go, 1.8tradoman swore up and down and argued till he was blue in the face that you would see 30-40% drops in the next 2 years and anyone who looking to buy at that time is an idiot, this was back in 2008.

http://www.revscene.net/forums/52840...-downtown.html

To be fair, prices took a pretty big hit as the recession began to take hold but cheap money and loose regulations re inflated them.

[multicartual]

Rent in Gastown or own in Langley, easy choice hahaha!

[Lomac]

Originally Posted by multicartual

Rent in Gastown or own in Langley, easy choice hahaha!

Yup, super easy.

Own in Langley.



Or get something with, y'know, actual land and trees and shit.

[iEatClams]

Originally Posted by Mr.HappySilp

Not trying to shit on fellow RS but this thread have started in 2012 and now it is 2104 and there still haven't been that bubble burst. I mean sure price might be stable or decline but I don't see a burst anytime soon.

Interest rate seems to be down and I think it still stay down till next year. I think if people wants to buy a place to live in for the next 15+years I don't see the reason not to go into the market. Real estate is meant to be a long long investment (10+years). With renting you are always renting, but if you purchase after the mortgage is paid off, all you really need to pay is starta fee (assuming is an apartment, town home) and property tax.

I think this thread has become a - vancouver real estate thread, rather than real estate bubble.

its more for members to get information or other users opinions on housing / rents / real estate markets etc.

[Tapioca]

Originally Posted by Carl Johnson

your complacency further recinforeces the state of current RE situation.

But, honestly what can the layperson who doesn't work for the Bank of Canada or doesn't have a direct line to Jim Flaherty do about the housing market? Maybe someone can start a political party and establish foreign ownership restrictions. Fat chance of that happening though as there are way too many in Vancouver and Canada that are involved in the RE economy.

We can whine, yell, and scream about how many idiots there are in Vancouver, but will this solve anything? Why can't we just invest and collect our 7-10%/dividends in peace?

except with mortgage you are locked down but with rent you can pack up and move anywhere you want.

I get the argument that you need to be mobile because that's the new economy. But really, how many people, particularly if they have families, actually pack up and move on a moment's notice? The only place in Canada in which you would be better off is Alberta.

[multicartual]

Originally Posted by Lomac

Yup, super easy.

Own in Langley.

Notice you don't post any photos of your commute, the "exciting nightlife" on 200th, any of the bland big box stores, or any of the culture and arts scene in Langley!

To each their own I suppose, if your kids have to goto school in Langley they're going to be in the same classes as the offspring of single moms who named their kids with double vowels like "Kaeden" and the rest of the trashy names you'll find out there.

At least downtown your children typically would have the opportunity to meet the offspring of a less beige and more culturally advanced lineage.

[Manic!]

Originally Posted by multicartual

Notice you don't post any photos of your commute, the "exciting nightlife" on 200th, any of the bland big box stores, or any of the culture and arts scene in Langley!

To each their own I suppose, if your kids have to goto school in Langley they're going to be in the same classes as the offspring of single moms who named their kids with double vowels like "Kaeden" and the rest of the trashy names you'll find out there.

At least downtown your children typically would have the opportunity to meet the offspring of a less beige and more culturally advanced lineage.

I think that crack you claim you smoked has messed with your brain.

[Ch28]

I like how Lomac uses the picture of a house that's listed @ 3.35 million

[Lomac]

Originally Posted by Ch28

I like how Lomac uses the picture of a house that's listed @ 3.35 million

Well in all fairness, North Langley is shit with all the new development going in. But South Langley (Brookswood onwards) has some super nice houses with huge land for relatively cheap.

[multicartual]

Originally Posted by Manic!

I think that crack you claim you smoked has messed with your brain.

Why? If you live in Surrey your kids are much more likely to be around the offspring of trashy single moms and tattooed up dbags. Much less likely at Lord Byng, for example.