If the market is on the rise, the bank will be more concerned if 100% of the units were sold. This is because if revenue is fixed and expense in on the rise, we have an issue. By having only half the units sold, in a rising market, the developer could re-adjust the price of the remaining units to increase revenue to cover expense. Now why would the bank be concerned?

The bank will not lend because R/E price is dropping while construction cost in the short term in rising. Again only short term. Same time next year the construction cost will be half that.

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“I don’t know who’s arguing that falling lumber prices will affect Vancouver RE…”

It’s been brought up in the past and I’d argue that if it depresses the BC economy it will play out in Vancouver RE eventually, right now it’s just one reason of hundreds why our current level is unsustainable.

My point is we can’t just accept all bear arguments without giving them due scrutiny and then throw out Bull arguments without saying WHY we refute them.

You and I agree on the broad strokes and I really don’t see any point in belabouring this issue.

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And we can’t sell 50% of the project so the bank won’t give us any money.

Thumbsuck since you’re so knowledgeable why don’t you educate us as to the RE project financiers typical requirements for funding the completion of a project? In other words how many units need to be “sold” before the financiers are willing to go all in?

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“It’s a financing issue. It’s a scheduling issue. And it’s a labour issue,” he said. “I refuse to put my investors in harm’s way — we’re selling the site.”

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I don’t know who’s arguing that falling lumber prices will affect Vancouver RE, but lumber prices have been at historical lows for more than a year now. The reason that Vancouver RE prices will fall is supply and demand, pure and simple, and you can link them to affordability.

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my princess can you tell him construction cost is a problem which does not help the sky rocketing prices to come down.

Thumbsuck, If prices are skyrocketing then why couldn’t Elyse sell 50% of assignments? So you have effectively no demand, not enough to complete the project, so that takes care of your supply, canceled project, and prices will follow.

Thanks for the lesson moron.

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“Drachen, I’m disappointed:

‘That said, the DOW is about as linked to the reality of the US economy right now as the value of Vancouver RE is linked to local fundamentals right now.’

The stock market and the economy are two different beasts.”

I didn’t express myself very well.

The DOW is an indicator (although often a poor one) of US economic position. Right now it is an extremely poor one and so it’s essentially irrelevant.

But if we’re going to discuss things like housing starts in Arizona and how that will affect lumber prices and lumber prices will affect BC’s economy and THAT will affect Vancouver’s real estate prices we have to accept things like the DOW as fair game to bring to the table. We can then shoot them down as irrelevant in this instance (ie the 300 point surge) but I don’t think we can just throw the DOW out the window as if it’s some kind of a joke.

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well said

Can you pass that to tony please.I mean can you pass that theory of demand,supply,and cost which settle up the price of things,to tony danza ha.

my princess can you tell him construction cost is a problem which does not help the sky rocketing prices to come down.

Over all tell him this case also bring into our notice that current market price are right.

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“if the developer is un able to find buyer on listed price, he must reduce the price to sell the remaining units. “

Gosh sweetie, NOW you’re getting it! Just switch “Specuvestor” (or “owner if you like) and you have the point every one has been trying to drill into your head for years.

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offer issue is leaning with projects from day one and will stay there for rest of life.

“It is good method to keep the sq.ft. price on same scale, otherwise they can screw up your unit price. “
you might have read this first time here but this is old story since the begining of condo’s or appartments ,houses or town houses.

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tony,
you are good up to there after that if the developer is un able to find buyer on listed price, he must reduce the price to sell the remaining units.
otherside construction cost keep the up trend firmly, there is no bargain.

lets say your project worth 50 millions and construction cost is 100 million,who is going to beg for financing and who is going to lend money.
on last comment i suppose to mention do not ask for more but this time i give you more room. if you did not settle up yet, please move forward unless you feel good.

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Don’t be so hard on Ol’ thumbsupSat… he’s really useful.

The day he gives up his bullish sentiments is the day I will buy. He’s the voice of all the fact-free bulls in the city.

Just a few days ago someone mentioned that first we’ll see developers offring rebates and upgrades in an attempt to move stalled units.

Anon mentioned this has happened already in his development.

And sure enough ol’ ThumbsupSat had some kind of justification for it. It’s not that the whole bubble is about to pop (or already has).

“It is good method to keep the sq.ft. price on same scale, otherwise they can screw up your unit price. “

Although one must point out is real estate is forever up up UP, the developer wouldn’t have to offer these incentives….

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I didn’t tell you that, the Elyse developer did, of 119 units he sold 55 in 11 months. Did labour costs rise 10-11-09% since February? We’re not talking about a project started two years ago, we’re talking about something that is less than one year since the start of sales. Go back to your warehouse/numbers blog you fool.

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That said, the DOW is about as linked to the reality of the US economy right now as the value of Vancouver RE is linked to local fundamentals right now.

The stock market and the economy are two different beasts.

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I don’t think anyone here will flame you for that. We only flame people who provide incoherent, inconsistent or fallacious arguments for the continued appreciation of Vancouver RE without any useful points to add to the discussion. People who buy but don’t shove it in our faces how they’re much ’smarter’ than us poor bears mostly only get sympathy.

And on that note, you have my condolences.

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anon,
that’s too common to put offers free upgrade and maintenance off for 2 to 3 year,because of left over units some time hard to sell.floors view e/w/s/n/ kind of stuff play important role.

It is good method to keep the sq.ft. price on same scale, otherwise they can screw up your unit price.
so for that reason they do not bring down the price, but offer some alternative from their own pocket.

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funny you should say that!

i’m left with impression that the convoluted speech is typical REIC rhetoric passed through babelizer

a sort of knuckle-dragging drooling Ozarks type rendition of the English language

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