Quote:
Originally Posted by sonick
I'm sure the price is right IF based on the sale price of the unit. But the issue is that value is WAY more than its actual worth in the rental market, and therein lies the rub.
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Not sure why we're comparing the rental price to what it sold for.
In most markets, it's a reasonable approach, but in Vancouver real estate prices have decoupled from their fundamentals, as such, saying "its sale price was "XYZ" multiple of the rental price, thus the rental price makes sense" doesn't work in this city.
Bubbles are defined as just this case, decoupling away from fundamentals, on a near term basis - near term being the optimal term here, as we'll go back, either through massive salary increases, and accompanying rental hikes (hahahahha, ya, right, with this joke of an economy), or prices will come down
That place in Richmond looks alright, but only alright, but fundamentally it's a small box, with likely a poor view, and is in Richmond, what I think is one of the ugliest areas in Vancouver (just streets, condos, townhouses, ugly place)